Articles 30th Jan 2024
Kumar Visalaksh, Partner & Ajitesh Dayal Singh, Associate, Economic Laws Practice (ELP) have co-authored an article “Investor Uncertainty and Court’s Response: A Look at Recent Income Tax Notices” published by BW Legal World.
The article discusses the recent trend of the Indian Income Tax Department issuing reassessment notices to foreign investors. These notices, which question the source of funds for investments in India without alleging income earned in India, conflict with the government’s claims of simplifying law and promoting ease of doing business. The Delhi High Court, however, has invalidated these notices, emphasizing that investments don’t imply income escapement.
This approach by the tax authorities raises concerns about investor confidence and contradicts principles of international tax cooperation, potentially impacting India’s attractiveness as an investment destination.
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