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By Vijay Kumar

Before the Budget is ready, have a look at this Supreme Court case, which we could not hold till Monday and so we bring it to you today.

Income Tax - DTAA

Dividend income arising in Malaysia : SC upholds overriding effect of DTAA provisions and rules such income is not taxable in India

IN the latest order involving Double Taxation Avoidance Agreement ( DTAA ), the Apex Court has once again ruled that wherever there is a dispute between the DTAA and the domestic income tax act, the provisions of the treaty will prevail over the domestic Act. In this case, a dispute had cropped up regarding taxability of dividend income derived by the assessee form a Malaysian company. And upholding the HC order which had earlier sustained the Tribunal decision, the Supreme Court has made it clear that in view of the DATA with Malaysia , an income arising in Malaysia cannot be taxed in India under any provisions of the domestic Act.