« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  Depreciation on leasing ? An ageing puzzle... Competition Bill: Cos must give notice of M&A moves... » I-T dept seeks SC ruling on DTAA September, 03rd 2007 The Income Tax Department has sought a ruling from the Supreme Court on a High Court decision that dividend income was non-taxable if it came from an entity from a country that has a double taxation avoidance agreement (DTAA) with India. The department challenged the Madhya Pradesh High Court order exempting Turqouise Investment and Finance Ltd, an Aditya Birla Group promoter firm, from paying tax on dividend received from Pan Century Edible Oil Sdn Bhd, the Group's erstwhile Malaysian unit which it sold in December last year. An apex court bench headed by Justice S H Kapadia has issued notices on the department's special leave petition. The High Court had passed the order on a batch of petitions, including that of Turqouise Investment, which challenged the taxability of dividend income received by it in Malaysia. The tax department challenged the High Court order which held that income accrued or arising outside India was part of the total income of the resident assessee. The department said Turqouise was not entitled to credit of deemed tax deducted at source (TDS) and tax liability in India could not be treated as tax paid by it in view of DTAA between India and Malaysia. Tax authorities argued that the provisions of DTAA were applicable only where identical tax liability was imposed on the same article in both the countries and where tax exemption does not fall into the ambit of agreement. The high court was not justified in holding that dividend income earned by Turqouise to the tune of Rs 21.35 lakh from Pan Century was exempted in India, it said. More IB RHP UPD 09021327 DEL According to the tax deparment's petition, the credit of deemed TDS was not admissible under DTAA on the dividend income received by Turquoise from a Malaysian company. Further, there was no actual deduction at source and as such the question of allowing credit did not arise in this case, the petition said. The department had rejected its credit claim on the basis of deemed credit on dividend received from Pan Century. According to the department, Turquoise had filed its tax returns declaring income of Rs 4.30 crore by showing its business as investment and finance.