« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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.