The International Tax Review has paid rich tribute to the Income Tax Appellate Tribunal calling it one of the 50 biggest influences in tax. It noted that Hon’ble Shri. G. E. Veerabhadrappa was recently appointed President of the Tribunal.
The Tribute came on the strength of the recognition that the “ITAT has released countless rulings on the treatment of transfer pricing in India, with more than 100 rulings in transfer pricing this year alone“.
What came as a pleasant surprise was the compliment paid by the prestigious journal that the ITAT “stands as a major influence in the approach to the practice, with tax payers all over the world using the numerous decisions as bench marks for their own documentation and transfer pricing strategy“.
The Journal identified four landmark judgements which it called “influential cases“. These were Gem Plus India Pvt Ltd vs ACIT 330 ITR 175, Abhishek Auto Industries Ltd vs DCIT 50 DTR 257, Cheil Communications 48 DTR 289 and Serdia Pharmaceuticals (India) Pvt Ltd v ACIT 50 DTR 98 (Mum)
Sharing the tribute with the Tribunal for the position of “The 50 biggest influences in tax” is Hon’ble S. H. Kapadia, Chief Justice of India. Chief Justice Kapadia’s judgements in Morgan Stanley 292 ITR 416 (transfer pricing), GE India Technology (s. 195 TDS), Enron Oil & Gas (production sharing contracts) & Walfort Stocks & Shares 326 ITR 1 (dividend stripping) were hailed as having “gone a long way in clarifying the law“.
The International Tax Review also complimented the Chief Justice for the “clarity & simplicity” of his judgements and his approach in adopting a “more holistic approach to taxation“. It was also noted that the expected verdict by the Chief Justice’s Bench in the Vodafone International case will be the “first case of its kind anywhere in the world” and that “it is likely to lay down a marker for revenue authorities and tax practitioners everywhere on the taxation” of off-shore mergers and acquisitions.