Category: Tax Update

Recently, Kolkata Tribunal in case of Koninklijke Philips NV held that interest on income-tax refund to the Netherlands based company was not taxable in India by application of beneficial provisions of India-Italy Tax Treaty pursuant to Most Favoured Nation clause in India-Netherlands Tax Treaty.

Recently, the Hon’ble Kolkata Tribunal held that provisions of section 56(2)(viib) of the Income-tax Act, 1961 shall be applicable upon conversion of Compulsory Convertible Debentures (CCDs) into equity shares. The Tribunal interpreted the term “receives any consideration” contained in section 56(2)(viib) to include consideration in all forms and is not limited to only ‘receipt of money’.