Letter By Joint Secretary Can’t Override Plain And Unambiguous Provision Of Income Tax Act, 1961 And Finance Act: Calcutta High Court

The Calcutta High Court upheld that a Joint Secretary's letter couldn't supersede the Income Tax Act and the Finance Act. The appellant, a branch of ABN AMRO Bank NV, claimed taxation as a domestic company under the India-Netherlands DTAA. \r

However, the ITAT ruled them liable as a foreign company. The court, citing clear legislative language, affirmed taxation as per the Finance Act for non-domestic companies. It held the appellant liable at the rate for non-domestic companies, rejecting their claim as a domestic entity. \r

Counsel for Petitioner: Percy Pardiwalla. Counsel for Respondent: Smita Das De. Case Title: The Royal Bank Of Scotland N.V. @ Abn Amro Bank N.V. v. Director Of Income Tax, International Taxation 2(1), Kolkata.