« Top Headlines » Open DEMAT Account in 24 hrs  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money  ITAT Cuts ?4.85 Lakh Penalty After ?14.02 Lakh Interest Income Was Missed in ITR  ITR filed under old regime, tax calculated under new regime; Delhi ITAT gives taxpayer relief  ITAT Delhi Quashes Tax Notice on AMU PG Student’s ?18.34 Lakh Stipend, Declares It Tax-Free Under Section 10(16)  Advance tax deadline September 15: What happens if you missed the previous instalment payment?  How much gold jewellery can you keep at home? Nagpur ITAT explains rules on ownership, gifts, taxability  ?5.31 lakh TDS refund allowed by ITAT Delhi: Why absence of an original ITR did not block the taxpayer  Missed the ITR Filing Deadline? How to Claim Your Income Tax Refund and Correct Mistakes Before December 31, 2026  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session)  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session)  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session) «  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.