« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  New hotels in NCR shed stars to avail tax holiday... "E-payment of taxes mandatory from January"... » Revenue dept moves SC on Morgan Stanley judgment October, 26th 2007 The Income-tax Department on Tuesday moved Supreme Court seeking review of its judgment in the Morgan Stanley case. The revenue department, in its petition prepared by additional solicitor general Mohan Parasaran, has sought to tax the profits of MNC operations in India on the ground that a mere arms length payment (market price) to the captive entity cannot absolve them of tax liability. The remuneration at market price to the BPOs and the taxiblity on the profits of foreign companies are two different things, said the revenue department seeking setting aside the apex courts July 9 verdict in the case of US investment bank Morgan Stanleys captive BPO The Supreme Court had ruled that foreign companies would not be at risk of being taxed in India as long as it was compensating its outsourcing unit on an arms length basis (same payment to the Indian entity as it would to an outside agency). It is respectfully submitted that arms length payment to the service provider cannot extinguish the taxibility of the profits of the foreign principal. A proposition to such effect in the impugned judgement (Mogan Stanley BPO case) goes against the internationally accepted principles on attribution of profits to the PE, said revenue in its 162-page review petition, which includes annexures as well.