Bombay High Court’s Judgement on Section 9(1)(vi) of the Income Tax Act: CIT vs Reliance Infocomm Ltd

COURT: Bombay High Court

CORAM: Akil Kureshi J, M. S. Sanklecha J

SECTION(S): 9(1)(vi)

GENRE: International Tax

CATCH WORDS: India-Netherlands DTAA, Retrospective amendment, royalty

COUNSEL: J.D. Mistri

DATE: February 5, 2019 (Date of pronouncement)

DATE: June 8, 2019 (Date of publication)


Section 9(1)(vi) ‘Royalty’: The insertions of Explanations 5 & 6 to s. 9(1)(vi) by the Finance Act 2015 w.r.e.f. 01.04.1976, even if declaratory and clarificatory of the law, will not apply to the DTAAs. The DTAAs are a bilateral agreement between two Countries and cannot be overridden by a unilateral legislative amendment by one Country (New Skies Satellite BV 382 ITR 114 (Del) & Siemens AG 310 ITR 320 (Bom) followed).

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