Union of India v. Azadi Bachao Andolan

263 ITR 706Supreme Court of India2003#79 most cited

What is Union of India v. Azadi Bachao Andolan authority for?

A citizen is free to carry on business within the law, and mere tax planning without a motive to evade taxes through colorable devices is not frowned upon. The liability to taxation, for the purpose of tax treaty application, is a legal situation, not the fiscal fact of actual payment.

691

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2026.

Also referred to as

Union of India v. Azadi Bachao Andolan · section 90 · treaty benefits · tax planning · colourable devices · liability to taxation · payment of tax · Article 4 · tax treaty

Also reported as

132 Taxmann.com 373

Sections most often in play

Section 143(3)Section 139(1)Section 90Section 234BSection 143(2)Section 143(1)Section 142(1)Section 148
Read the full judgment

Issues it is cited on

section 286(9)section 90(1)(b)principal purpose testsection 2(ma)multilateral instrumentsection 286azadi bachao andolansection 90(1)treaty benefitssection 295section 28(i)ppt

Judgments citing Union of India v. Azadi Bachao Andolan

Credit Suisse Business Analystics (India) Private Limited, Mumbai vs. Asstt.CIT- 15(1)(2), Mumbai

ITA 993/MUM/2015[2010-11]Status: DisposedITAT Mumbai05 Aug 2016AY 2010-11
For Appellant: Shri F.V. IraniFor Respondent: Shri Manjunath Swamy-DR
Section 143Section 254(1)Section 56Section 56(1)Section 78

…value of shares could be taken only at Rs. 10 per share, that the receipt of use premium of Rs. 187/- per-share was a device to avoid tax. He relied upon the cases of McDowell (154 ITR 148), Banyan and Berry (222 ITR 831) and Azadi Bachao Andolan and others (256 ITR 563) and held that the intention behind the transaction would be the guiding factor to decide as to whether the judicial process could approve the transaction. He also analyse the provisions of section 78 of the Companies Act(CA)and examined as to whether the premium collected by the assessee had been utilised as per the conditions laid down in the s…

M/S Om Welfare Society, Hisar vs. ITO, Hisar

In the result, the appeal of the assessee is allowed

ITA 1583/DEL/2016[2008-09]Status: DisposedITAT Delhi05 Aug 2016AY 2008-09

Bench: Sh. N. K. Saini

For Appellant: Gautam Jain, CAFor Respondent: Sh. V. R. Sonbhadra, Sr. DR
Section 10Section 11Section 12ASection 143(1)Section 143(3)Section 144Section 147Section 148

…R 527[SC] - CIT V. INDIAN RARE EARTHS LTD. [2015] 374 ITR 104 [Bombay] -C1T V. HIGH ENERGY BATTERIES (INDIA) LTD 348 ITR 574 [MAD] [2012] -MC Dowell and Co Ltd V. CTO [1985] 154 ITR 148 [SC] 5 Om Welfare Society -Union of India V. Azadi Bachao Andolan [2003] 263 ITR 706 [SC] -Parveen P Bharuch V. DCIT 348 ITR 325 [Bombay] [2012] -Asian Paint Ltd V. DCIT 308 ITR 195 [Bombay] [2009] -Carntin India Ltd V. Addl. CIT 314 ITR 275 [Bombay] [2009] -CIT V. Nirma Chemicals Works P Ltd 309 ITR 67 [Guj] [2009] The Assessing Officer decline the objection merely on the ground that this proviso is applicable only in those case…

Shalini Seekond, Mumbai vs. ITO 3(2)(2), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 3877/MUM/2012[2007-08]Status: DisposedITAT Mumbai07 Jul 2016AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 3877/Mum/2012 ("नधा"रण वष" / Assessment Year : 2007-08) Mrs. Shalini Seekond Income Tax Officer - बनाम/ 6/15, Shyam Niwas, 3(3)(2), Aayakar Bhawan V. Bhulabhai Desai Road, M K Road Mumbai-400026 Mumbai. "थायी लेखा सं./Pan : Anhps1305D (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri T.Roumen Paite CIT
Section 143(3)Section 5Section 6Section 90

…rt in Kulandagan Chettiar’s (supra) case. The view is supported by decision of Hon’ble Karnataka High Court in the case of CIT v. R.M.Muthaiah , 202 ITR 508(Kar. HC) , which decision has been upheld by the Hon’ble Supreme Court in UOI v. Azadi Bachao Andolan, 263 ITR 706(SC). Thus, it was submitted whether the assessee is considered as resident of India or that of Sri-Lanka under DTAA , ITA 3877/Mum/2012 8 the capital gains on the sale of the immovable property located in Sri-Lanka by the assessee shall be taxed only in Sri-Lanka and not in India. It was also contended that even if there is zero taxation in o…

Commissioner of Income Tax, Kochi vs. Trans Asian Shipping Services (P) Ltd

C.A. No.-005869-005869 - 2016Supreme Court05 Jul 2016
Section 115VSection 14Section 2(17)

…rs of CBDT explaining the Scheme of the Act have been held to be binding on the Department repeatedly by this Court in a series of judgments including Azadi Bachao Andolan v. Union of India2, Navnit Lal Jhaveri v. K.K. Sen3, and UCO Bank v. CIT4. 2 263 ITR 706 3 IAC 56 ITR 198 SC 4 237 ITR 889 SC Civil Appeal No. 5869 of 2016 & Anr. (arising out of SLP (C) No. 25251 of 2015 & Anr.) Page 30 of 31 Page 31 JUDGMENT 28. We, thus, agree with the decision of the High Court and find no merit in the instant appeals. The same are hereby dismissed. There shall, however, be no order as to cost. .............…

Galatea Ltd, Mumbai vs. DCIT (It) RG 2(3)(2), Mumbai

In the result, the assessee’s appeal for A

ITA 5434/MUM/2015[2012-13]Status: DisposedITAT Mumbai29 Jun 2016AY 2012-13

Bench: Shri Jason P. Boaz & Shri Saktijit Daym/S. Galatea Ltd. Dcit (International Taxation) P.O. 1156, Industrial Vs. Range 2(3)(2) Area, Dalton, Israel Mumbai Pan - Aadcg8396D Appellant Respondent

For Appellant: Shri Bomi Daruwala &For Respondent: Shri Jasbir Chouhan
Section 143(3)Section 144CSection 144C(1)Section 144C(13)Section 144C(5)Section 9(1)(vi)Section 90(2)

…hat in case provisions of the Act are more burdensome then the provisions of the Act would not apply and the assessee would be governed by the provisions of DTAA. Hon'ble Delhi High Court followed the judgment of Hon'ble Supreme Court in Azadi Bachao Andolan, 263 ITR 706 (SC), wherein it was laid down that in case of conflict, the provisions of DTAA would override the statutory provisions of the Act so long as these are more beneficial to the assessee. It was further held by the Hon'ble High Court that in the absence of any corresponding amendment in DTAA, there was no need to examine effect of subsequent amendme…

Rahil Impex P.Ltd, Mumbai vs. DCIT Cen Cir 13, Mumbai

ITA 4002/MUM/2014[2011-12]Status: DisposedITAT Mumbai10 Jun 2016AY 2011-12

Bench: S/Shri B.R. Baskaran (Am) & Ramlal Negi (Jm)

Section 10Section 115J

…lanned there is nothing to impeach the genuineness of the transaction. With regard to the ruling in McDowell and Co. Ltd v. CTO (1985) 154 ITR 148 (SC), it may be stated that in the later decision of this court in Union of India v. Azadi Bachao Andolan (2003) 263 ITR 706 it has been held that a citizen is free to carry on its business within the four corners of the law. That, mere tax planning, without any motive to evade taxes through colourable devices is not frowned upon even by the judgment of this court in McDowell and Co Ltd’s case (supra). Hence, in the cases arising before April 1, 2002, losses pertaining…

Indian Petrochemicals Corporation Ltd ( Merged With Reliance Industries Ltd), Mumbai vs. ITO (TDS) (Ltu), Mumbai

ITA 3219/MUM/2012[2006-07]Status: DisposedITAT Mumbai18 May 2016AY 2006-07

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

Reliance Corporate It Park Ltd ( Formerly Relene Petrochemicals Ltd, Navi Mumbai vs. DDIT (It) RG 2(1), Mumbai

ITA 2728/MUM/2012[2007-08]Status: DisposedITAT Mumbai18 May 2016AY 2007-08

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT(It)-2(1), Mumbai vs. Reliance Industrial Infrastructure Ltd., Mumbai

ITA 3354/MUM/2011[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4593/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4590/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4587/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3582/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3579/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3578/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3577/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3576/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

ITO (TDS) (Ltu), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 5832/MUM/2009[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

ITO (TDS) (Ltu), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 5829/MUM/2009[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 5266/MUM/2009[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…the same would prevail over the provisions of the Income Tax Act as provided under section 90 of the Income Tax Act. He, in this respect, has relied upon the decision of the Hon‘ble Supreme Court in the case of ―Union of India vs. Azadi Bachao Andolan‖ (2003) 263 ITR 607. 17. We have considered the rival contentions of the Ld. Representatives in this respect. We have also gone through the relevant definitions of ‗royalty‘ as provided under the DTAA and under the Income Tax Act. So far as the definition of royalty as provided under section 9(1)(vi) of The Income Tax Act is concerned, the relevant part of the said…