Course Manual

Law of Taxation

LL. B. 2022 Batch, Spring 2024

Semester

Course Instructors

Ms. Dhwani Mainkar

Mr. Ritesh Bajaj
Ms. Sana Javed
Ms. Saudamini Gupta

Course Coordinator

Ms. Dhwani Mainkar

Part I

Course Title Law of Taxation

Course Code

Corse Duration One semester

Level & Program LL.B. 2022 Batch

Medium of Instruction English

Pre-requisites Nil

Pre-cursors Nil

Equivalent courses Nil

Exclusive courses Nil

Part II: Course Aim

India has a comprehensive tax structure. The power to levy taxes and duties is distributed among the three
tiers of Government, in accordance with the provisions of the Indian Constitution. Broad classification of
the taxes is done under the categories of direct and indirect taxation. The Central government, the state
governments and the local bodies levy and collect different types of taxes in accordance with the provisions
of the relevant legislation. Since taxes cannot be levied or collected without the authority of the
Constitution, the course studies how specific legislations must satisfy the test of that any of these
legislations shall not be in violation of the provisions of the Constitution. The initial segment of this course
seeks to explain the fundamentals of Constitution and Tax. The taxes levied shall not be arbitrary or without
legislation. The efficient collection of both, the income based and the consumption-based taxes, contribute
towards the development of the nation and in meeting the costs of governance.

The tax system in India has undergone a radical change in line with the liberalization of policies since 1991.
Some of the changes include rationalization of tax structure reduction in corporate tax rate; alignment of
customs duty in accordance with bilateral treaties; introduction of value added tax and widening of the tax
base. The latest entrant in the domain of taxes is the Goods and Services Tax (GST) in the year 2017, which
deals with the minimization of taxes, elimination of their cascading effect and then not just improve the
ease of doing business but also to help in reducing the cost of goods and services for the end consumer. It
would be apt to say that tax laws form an integral part of the fiscal and trade policies of the nation. This
course aims to cover some crucial conceptual aspects of the Indian GST laws, such as ‘Taxable event of
Supply’, inter alia the concepts of intra-state and inter-state supplies and their implications on the taxes
imposed.

Even though several tax laws have been restructured and contemporary provisions have been introduced to
ensure better compliance, they still represent a complex system of legislations for the layman. The Indian
courts have played a pivotal and incessant role in curtailing arbitrary taxation by the authorities and have
laid down several guidelines for the effective implementation and valid interpretation of the tax laws.
Contrary to the popular notion of it being a vast and arid subject, the study of tax laws is quite intriguing.
It is highly utile for students of law as it elevates their general awareness of jurisprudential and
contemporary taxation principles from personal as well as practice perspective.

This course shall seek to –

❖ provide students with the knowledge of the basic principles of taxation, for direct taxes, in India,
as well as introduce the indirect tax structure of India;

❖ develop comprehension and application of these principles as they have been interpreted by the
Indian courts;

❖ develop an awareness of the concurrent issues in the domain of taxation laws through periodic case
studies of the relevant domestic and international judicial pronouncements;

❖ introduce students to the co-relation between domestic taxation laws, fiscal policies and
international trade;

❖ introduce students to basic practical skills required to conduct research in the domain of taxation;
 Intended learning outcomes of this course

Course objective Teaching and Learning Assessment

Activities Tasks/ Activities
By the end of the course students
should be able to:

Analytically and critically 50 % Reading of relevant cases End-of-course closed

describe and explain the Weightage and other material and book, timed examination
substantive principles of direct research. (50% of marks)
taxation pertaining to the topics to
be covered in the syllabus.
Students will acquire Tutorials (25% of marks
knowledge of the scheme for attendance,
of direct taxation presentation and
pertaining to the topics to participation)
be covered in the syllabus. Assignment/s (25% of
marks for case
reviews/case studies,
etc.) – This segment of
Students will be internal assessments is
encouraged to participate subject to the discretion
in class discussion to of each faculty member.
develop their analytical
and critical skills. Students’ ability to
describe and explain the
main substantive rules of
direct taxation on topics
Analyze and critically evaluate: covered in the syllabus
● Students will, by will be tested on all three
● issues and concerns in the responding to questions assessment parameters.
fields of direct taxation 30% and performing exercises,
● the operation of the Weightage develop their analytical End-of-course
principles of corporate and critical capabilities to examination +Tutorials
discuss important issues +Assignments
taxation and taxation of
of taxation on Students’ ability to
commodities
corporations and analyze and critically
● the practical implications commodities. evaluate will be tested by
of the taxation principles all three assessment
on international trade and tasks/activities to
commerce determine their ability to
apply the legal principles
Students will be to a given factual
introduced to issues and situation.
concerns and aspects of
the operation of the End-of-course
principles of direct examination
taxation. Students’ ability to apply
Apply the principles of the principles of law to
corporate taxation to solve legal given situations and
problems by: Preparation for tutorials resolve problems will be
examined.
● researching issues of Students will research on
corporate taxation
 ● analyzing and innovating 20 % the issues of direct taxes,
to resolve problems Weightage corporate taxation and Tutorials
concerning issues of international taxation. Students will be required
corporate taxation. to make presentations on
● communicating their problems and questions
allotted to them and all
solutions orally and in
students will be required
writing clearly,
to participate and
coherently, and accurately Tutorials contribute to tutorial
in their own words and in discussions whether they
plain language Students will give are making a presentation
presentations on selected research, analyze and
topics in which they will resolve problems, and
scrutinize, analyze and communicate solutions
evaluate issues and orally will be tested. This
concerns in the topics is subject to the
related to taxation of discretion of the Course
corporations and Instructor.
commodities, domestic
and international. Assignment/s
Students’ ability to
Lectures research, analyze and
Students will be shown resolve problems, and
how legal problems are communicate solutions
solved applying principles in writing will be tested.
of corporate and
international taxation.

Grading of Student Performance

To pass this course, students must obtain a minimum of 50% in each of the coursework and the examination elements of
the assessment. Coursework for this purpose means those ways in which students are assessed otherwise than by the end of
session examination. End of semester exam will be in the form of a traditional 3 hours written exam.

Letter Percentage
Grade Of marks Grade Values and Definitions

8 Sound knowledge of the subject matter,

excellent organizational capacity, ability to
O 80 and above synthesize ideas, rules and principles, critically
analyze existing materials and originality in
thinking and presentation.

7.5 Sound knowledge of the subject matter,

thorough understanding of issues; ability to
A+ 75 to 79 synthesize ideas, rules and principles and
critical and analytical ability.
 7 Good understanding of the subject matter,
ability to identify issues and provide balanced
A 70 to 74 solutions to problems and good critical and
analytical skills.
6 Adequate knowledge of the subject matter to go
to the next level of study and reasonable critical
A- 65 to 69 and analytical skills.

5 Decent Knowledge of the subject matter but

average critical and analytical skills.
B+ 60 to 64
4 Limited knowledge of the subject matter and
irrelevant use of materials and, poor critical and
B 55 to 59 analytical skills.
3 Poor comprehension of the subject matter; poor
critical and analytical skills and marginal use of
B- 50 to 54 the relevant materials. Will require repeating
the course.

F Below 50 0 None of the Above

F Below 50

Student Participation

Students are required to prepare for lectures and tutorials and to participate in them. Their participation will be assessed and
graded.

Cases and other Reading Material

✔ Systematic Approach to Income Tax, (2023), 49th edition , Ed, by Dr Girish Ahuja and Dr Ravi Gupta

✔ Corporate Tax Planning and Business Tax Procedures, (August 2023), 27th edition, Ed, Taxmann by Dr. Vinod
Kr. Singhania and Dr. Monica Singhania.

Communication regarding relevant chapters/reading material and specific cases to be studied for each week’s lecture will
be sent to students in advance.

Plagiarism

Any idea, sentence or paragraph that the students cull out from the internet must be credited with the original source.
Paraphrasing or directly quoting from a web source in the exam, presentation, or essays, would require disclosure of the
source. The university has strict rules with consequences for students involved in plagiarism.
This is an issue of academic integrity on which no lenience should be expected.

Disability Support and Accommodation Requirements

JGU endeavors to make all its courses accessible to students. All students with a known disability needing academic
accommodations are required to register with the Disability Support Committee [email protected]. The Committee has so far
identified the following conditions that could possibly hinder student’s overall well-being. These include: physical and
mobility related difficulties; visual impairment; hearing impairment; medical conditions; specific learning difficulties e.g.
dyslexia; mental health.
The Disability Support Committee maintains strict confidentiality in its discussions. The students should preferably register
with the Committee in the month of June/January as disability accommodation requires early planning. DSC will approve
and coordinate all the disability related services such as appointment of academic mentors, specialized interventions and
course related requirements such as accessible classrooms for lectures, tutorials and examinations.

All faculty members are required to refer students with any of the above-mentioned conditions to the Disability Support
Committee for addressing disability-related accommodation requirements.

Part III: KEYWORD SYLLABUS

Direct taxation, Indirect Taxation, Constitution and Tax, tax planning, avoidance and evasion, tax incidence and impact,
residential status, capital gains, exemptions and deductions, Double taxation avoidance agreements

Part IV: DETAILED SYLLABUS

❖ Introduction to General Principles of taxation- tax planning- avoidance- evasion

❖ Key features of direct and indirect taxes, canons of taxation

❖ Constitutional provisions with respect to taxation laws

❖ Introduction to Indirect Taxes - The changing landscape with the advent of GST

❖ Key concepts of the Income Tax

❖ Residential Status and incidence of tax

❖ Concepts of Previous Year and Assessment Year, Assessment Procedure

❖ Concept of Business Connection & Permanent Establishments

❖ Capital Gains

❖ Dispute Resolution Mechanism

❖ International Taxation- Double Taxation Agreements-

❖ Transfer Pricing- BEPS

❖ Digital taxation

Part V: READINGS FOR THE COURSE

The lecture handouts or any relevant literature will be circulated a week in advance. They will have a significant role as
they would be a customized source of pertinent information on the upcoming topics. Students are advised to keep a regular
record of them.

Essential Readings:

✔ Systematic Approach to Income Tax, (2023), 49th edition , Ed, by Dr Girish Ahuja and Dr Ravi Gupta

✔ Corporate Tax Planning and Business Tax Procedures, (August 2023), 27th edition, Ed, Taxmann by Dr. Vinod
 Kr. Singhania and Dr. Monica Singhania.

✔ Principles of Taxation Law by Ahuja, Gupta & Chawla 2nd Edition 2024

✔ Rav Pratap Singh, Constitution of Tax: A Tale of Four Constitutional Amendments, (Oakbridge 2021)

✔ Roy Rohatgi, Basic International Taxation (Vol. I and II), (2007), 2nd Edition, Taxmann Publications

Scholarly Articles & Book Chapters:

✔ Pistone, Pasquale and Roeleveld, Jennifer and Hattingh, Johann and Pinto Nogueira, João Félix and West, Craig, Fundamentals
of Taxation: Introduction to Tax Policy. Tax Law and Tax Administration (July 8, 2019). Fundamentals of Taxation, Chapter
1, July 2019, Available at SSRN: https://ssrn.com/abstract=3646251

✔ Adam Smith, Wealth of Nations (first published 1776) (Book 5, Chapter II, pages 639 to 641);

✔ Christians, Allison, Introduction to Tax Policy Theory (May 29, 2018). Available at
SSRN: https://ssrn.com/abstract=3186791 or http://dx.doi.org/10.2139/ssrn.3186791

✔ Principles of Taxation Law by Ahuja, Gupta & Chawla, Chapters 1-3, 2nd Edition 2024
✔ Kotha, Ashrita Prasad and Talekar, Pradnya Satish, Earmarked Taxes: An Indian Case Study (June 30, 2021). eJournal of Tax
Research (2021) volume 19(1) 97-120, Available at SSRN: https://ssrn.com/abstract=3880472

✔ Niranjan, V., "Interstate Trade and Commerce: The Doctrine of Proportionality Reaffirmed" [2008] INJlConLaw 7; (2008) 2
Indian Journal of Constitutional Law 192

✔ Shreya Rao, The Indian Equalisation Levy: Inelegant But Not Unexpected, NLS Business Law Review, Volume 2, p. 25-48,
2016

✔ Sujit Choudhry, Madhav Khosla, and Pratap Bhanu Mehta (eds.) The Oxford Handbook of the Indian Constitution, Chapter
27, Inter-State Trade, Commerce and Intercourse, pp.486-501.

✔ Khagesh Gautam, "Taxing Offshore Transactions in India and the Territoriality Clause - A Case for Substantial Constitutional
Limitations on Indian Parliament's Power to Retrospectively Amend the Income Tax Act", INTERNATIONAL TAX
JOURNAL (Wolters Kluwer, CCH), July-August 2014, 19-34.

✔ Ashrita Prasad Kotha, Place of Effective Management Test in the Income Tax Act, 1961: Is It The Right Way Forward?, 8
NUJS L. Rev 13 (2015)

✔ Varun Kannan and Prashant Shukla, Analyzing the Working of the GST Council from the Perspective of Fiscal Autonomy of
the States, Electronic copy available at http://www.indialawjournal.org/analysing-the-working-of-gst-council.php

✔ Malini Chakravarty, GST Answers to some basic questions, Centre for Budget Governance and Accountability, Electronic
copy available at http://www.cbgaindia.org/primers-manual/gst-answers-basic-questions/

✔ Meyyappan Nagappan, Srikanth Vasudevan, 'Indirect Transfer Taxation in India: From Vodafone to Cairn', (2017), 45, Intertax,
Issue 10, pp. 665-676, https://kluwerlawonline.com/journalarticle/Intertax/45.10/TAXI2017057
✔ Business Connection and Permanent Establishment, Nishith Desai Associates, Ms. Shefali Goradia September 19 -21, 2003
accessed at <
https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Business_Connection_and_Permanent_Establishment.pdf>

✔ Meyyappan Nagappan, Anandapadmanabhan Unnikrishnan, 'Virtual Permanent Establishments: Indian Law and Practice',
(2018), 46, Intertax, Issue 6, pp. 520-540, https://kluwerlawonline.com/journalarticle/Intertax/46.6/TAXI2018054

✔ Kinshuk Jha, The new face of tax notoriety, The Hindu, available at http://www.thehindu.com/opinion/op-ed/The-new-face-
of-tax-notoriety/article15000827.ece

✔ Reuven S. Avi-Yonah, Double Tax Treaties: An Introduction, pp.1-15, Electronic copy available at
http://ssrn.com/abstract=1048441.

✔ Paranjoy Guha Thakurta and Shinzani Jain, Thin Dividing Line India Mauritius and Global Illicit Financial Flows, Penguin
 Random House India, 2017, New Delhi, pp. 37-65

✔ Mukesh Butani, Tax Dispute Resolution Challenges and Opportunities for India, LexisNexis, 2016 (New Delhi), pp.113-142.

✔ Shashwat Sharma and Meyyappan Nagappan, GAAR Provisions: The Need for Internationally Accepted Restrictions on
Application, Asia-Pacific Tax Bulletin, 2018 (Volume 24), No. 1, pp.1-10.

Additional References:

✔ K N Chaturvedi, Interpretation of Taxing Statutes, Taxmann, 2008

✔ Taxmann's GST Ready Reckoner [CGST/IGST (Amdt.) Act 2023], V.S. Datey
✔ Granville Austin, The Indian Constitution Cornerstone of a Nation, 14th imp. (New Delhi, Oxford University Press
2009), Chapter 9.

Statutory References:

● Income Tax Act, 1961

● CGST Act 2017, GST (Compensation to the States) Act 2017
● 101st Constitutional Amendment Act 2016

Part VI: LECTURE PROGRAMME

The following lecture schedule is tentative and may be adjusted by the instructor(s) as they proceed.

Week 1: Introduction to Principles of Taxation

● Introduction to fundamental principles of taxation: Basic questions relating to taxation: What? Why? When?
Where? How? Cannons of Taxation.
● Concept of incidence and impact of tax for understanding direct & indirect tax categories
● Discussion on the rule of interpretation of tax statutes (strict rule), issues in adherence to the rule of interpretation
● Conceptual differences between tax, fee, compensatory tax, and other levies

Essential Readings:
1. Pistone, Pasquale and Roeleveld, Jennifer and Hattingh, Johann and Pinto Nogueira, João Félix and West, Craig,
Fundamentals of Taxation: Introduction to Tax Policy. Tax Law and Tax Administration (July 8, 2019). Fundamentals
of Taxation, Chapter 1, July 2019, Available at SSRN: https://ssrn.com/abstract=3646251
2. Adam Smith, Wealth of Nations (first published 1776) (Book 5, Chapter II, pages 639 to 641);
3. Christians, Allison, Introduction to Tax Policy Theory (May 29, 2018). Available at
SSRN: https://ssrn.com/abstract=3186791 or http://dx.doi.org/10.2139/ssrn.3186791
4. Principles of Taxation Law by Ahuja, Gupta & Chawla, Chapters 1and 3, 2nd Edition 2024

5. Roy Wilson, Brian Galpin, Peter Benson, Maxwell on the interpretation of Statutes, 42 (11th edition, London: Sweet
& Maxwell) (1962), Pg 223, 503-515
6. Articles 270 and 271 of the Constitution of India (to understand the implication of the classification between tax,
surcharge and cess for centre-state revenues);
7. Kotha, Ashrita Prasad and Talekar, Pradnya Satish, Earmarked Taxes: An Indian Case Study (June 30, 2021). eJournal
of Tax Research (2021) volume 19(1) 97-120, Available at SSRN: https://ssrn.com/abstract=3880472
Week 2-3: Constitutional aspects of Tax and an Overview of the GST regime in India

● Introduction to the Constitutional provisions pertaining to the Power of taxation.

● Discuss Art 246 and Art 248 for understanding the scheme of distribution of legislative powers between the Centre
and State (pre-amendment); Union-State Fiscal Relations
● 101st Constitutional Amendment Act 2016; Role and functioning of the GST Council
● Need and Significance of GST in India.
● GST liability – Tax incidence (intra-state and inter-state supply), GST levies (CGST, SGST and IGST, GST
Compensation Cess), GST Tax Slabs
● Taxable event Supply, concept of Mixed and Composite Supply
● Significance of place, time and value of supply and ITC mechanism
Essential Readings:

1. Rav Pratap Singh, Constitution of Tax: A Tale of Four Constitutional Amendments, (Oakbridge 2021), Chapter 5 ‘Dawn
of the Grand Bargain: Enshrining Goods and Service Tax in the Constitution’

2. Rav Pratap Singh, ‘Reform and Deform: A Five-Side Critique of GST’ (Oakbridge 2023)

3. Varun Kannan and Prashant Shukla, Analyzing the Working of the GST Council from the Perspective of Fiscal Autonomy
of the States, Electronic copy available at http://www.indialawjournal.org/analysing-the-working-of-gst-council.php

4. Mohit Minerals v Union of India 2022 SCC Online SC 657

5. Principles of Taxation Law by Ahuja, Gupta & Chawla, Chapters 2, 23-27, 2nd Edition 2024

6. Malini Chakravarty, GST Answers to some basic questions, Centre for Budget Governance and Accountability, Electronic
copy available at http://www.cbgaindia.org/primers-manual/gst-answers-basic-questions/

Week 4: Introduction to Key Concepts in IT Act, 1961

● Key concepts: Previous Year, Financial Year, Assessment Year

● Concept of Income along with overview of various exemptions and deductions
● Accounting entries & their impact on the nature of receipt to be classified as ‘Income’ or not
● Snapshot of five heads of ‘Income’ along with the relevant statutory provisions
Essential Readings:
1. Principles of Taxation Law by Ahuja, Gupta & Chawla, Chapters 4, 6-11, 2nd Edition 2024
2. Harikrishna Family Trust v CIT (2008) 306 ITR 303(Guj.)
3. Orient Hospital Ltd v DCIT (2009)315 ITR 422(Mad.)
4. Raja Bahadur v. CIT; (1970) 77 ITR 253 (SC)
5. Sunil Bansal v. ACIT; (2019) 415 ITR 236 (Rajasthan)
6. ITC v. CIT; (2016) 384 ITR 14 (SC)
7. Karamchari Union v. UoI; (2000) 243 ITR 143 (SC)

Week 5 - 8: Residence & Source Rules under the Income Tax Act, 1961

● Rules relating to ‘Residence’ of different persons under the IT Act, 1961

● Computation exercises to understand the application of the rules relating to residence
● Discuss Place of Effective Management Test (PoEM test), its rationale and limitations
● Business Connection & rules relating to it in Section 9
● Interplay of Business Connection and Permanent Establishments under DTAAs
● Taxation of Royalties and FTS under the Income Tax Act 1961
Essential Readings:

1. Khagesh Gautam, "Taxing Offshore Transactions in India and the Territoriality Clause - A Case for Substantial Constitutional
Limitations on Indian Parliament's Power to Retrospectively Amend the Income Tax Act", INTERNATIONAL TAX
JOURNAL (Wolters Kluwer, CCH), July-August 2014, 19-34;
2. Principles of Taxation Law by Ahuja, Gupta & Chawla, Chapter 5, 2nd Edition 2024
3. CIT v. M/s Vazir Sultan & Sons, 1959 AIR 814;
4. Honda Siel Cars India Ltd. v. CIT [2017] 395 ITR 713 (SC)
5. E. D. Sassoon and Company Ltd v. CIT, 1954 AIR 470;
6. Radha Rani Holdings (P) Ltd. vs Additional Director of Income Tax, (2007) 110 TTJ Delhi 920;
7. V.V.R.N.M. Subbayya Chettiar vs CIT, 1951 AIR 101;
8. The Anglo-French Textile Co. Ltd. v. CIT, AIR 1951 Mad 597;
9. GVK Industries v ITO (Civil Appeal no.7796 of 1997)
10. Ebay International Ag, Mumbai v Assessee, ITA, No.6784/M/2010
11. Formula One World Championship Ltd. v. Commissioner of Income-tax (International Taxation) [2017] 394 ITR 80 (SC)
12. ADIT vs. E-Funds IT Solution Inc. -[2017] 86 taxmann.com 240 (SC)/[2017] 251 Taxman 280 (SC)/[2017] 399 ITR 34
(SC)/[2017] 298 CTR 505 (SC)
13. Ishikawajma-Harima Heavy Industries Ltd. vs. ADIT- [2007] 158 Taxman 259 (SC)/[2007] 288 ITR 408 (SC)/[2007] 207
CTR 361 (SC)/[2007] 158 Taxman 259 (SC)

14. Engineering Analysis Centre of Excellence Pvt Ltd v CIT (2021)

Additional Readings:

15. H Padamchand Khincha, KK Chythanya, Decoding Section 5: Analysis of Scope of Total Income under Income Tax Act,
1961
16. Ashrita Prasad Kotha, Place of Effective Management Test in the Income Tax Act, 1961: Is It The Right Way Forward?, 8
NUJS L. Rev 13 (2015);
17. Business Connection and Permanent Establishment, Nishith Desai Associates, Ms. Shefali Goradia September 19 -21, 2003
accessed at <
https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Business_Connection_and_Permanent_Establishment.pdf>
18. Permanent Establishments: A Domestic Taxation, Bilateral Tax Treaty and OECD Perspective, Ekkehart Reimer, Stefan
Schmid, Marianne Orell, Kluwer Law International B.V., 7 Jun 2018
19. Meyyappan Nagappan, Anandapadmanabhan Unnikrishnan, 'Virtual Permanent Establishments: Indian Law and Practice',
(2018), 46, Intertax, Issue 6, pp. 520-540, https://kluwerlawonline.com/journalarticle/Intertax/46.6/TAXI2018054
20. Vodafone International Holdings BV v. Union of India, (2012) 6 SCC 613;
21. Meyyappan Nagappan, Srikanth Vasudevan, 'Indirect Transfer Taxation in India: From Vodafone to Cairn', (2017), 45, Intertax,
Issue 10, pp. 665-676, https://kluwerlawonline.com/journalarticle/Intertax/45.10/TAXI2017057

22. International Taxation : The PE-dominated horizon in India By Jaydeep Menon accessed at <
https://taxindiaonline.com/RC2/printBNewspdf.php?newsid=6675>

23. Nigam Nuggehalli, ‘India’s Implementation of the BEPS Project: A Critical Survey’, Parthasarathy Shome (ed), Insights into
Evolving Issues of Taxation (CCH 2016) Part 6.

Week 9 - 10: Capital Gains Taxation

● Concept of Capital Gains

● Kinds of gains: Long Term and short term
● Computation exercises
● Exemption under Section 54

Essential Readings and Cases

1. Vania Silk Mills v. CIT AIR 1991 SC 2104
2. CIT v. BC Srinivasa Shetty (1981) 2 SCC 460
3. H. H. Maharaj Rana Hemant Singhji, ... vs Commissioner Of Income-Tax, Rajasthan 1976 AIR SC 662
 Week 11: Dispute Resolution Mechanisms

● Traditional litigation / appellate framework

● Board for Advance Rulings and its role.
● E-Dispute Resolution Scheme, 2022
● Faceless Assessment Scheme & Tax Amnesty Schemes [Vivad Se Vishwas Scheme]

Essential Readings and Cases

1. Mukesh Butani, Tax Dispute Resolution Challenges and Opportunities for India, LexisNexis, 2016 (New Delhi), pp.113-
142
2. Abolition of Settlement Commission and Constitution of Dispute Resolution Committee
Accessed at < https://www.livemint.com/news/india/tax-disputes-pile-up-in-absence-of-authorities-
11648834159101.html>
3. Taxpayer Rights: Deciphering the Indian Charter, Edited by Mr. Mukesh Butani & Mr. Kinshuk Jha

Week 12 - 13: Tax Treaties, Tax Avoidance, Tax Evasion & BEPS

• Double Tax Treaties: An Introduction

• Discuss Indo-Mauritius Treaty DTAA, Protocol, and its implications
● Discussion on Denial of Benefits Clauses under DTAAs
● Discussion on Base Erosion Profit Shifting (BEPS) Action Plans & MLI

Essential Readings:

1. An introduction to tax treaties BRIAN J. ARNOLD, accessed at < https://www.un.org/esa/ffd/wp-

content/uploads/2015/10/TT_Introduction_Eng.pdf>
2. Reuven S. Avi-Yonah, Double Tax Treaties: An Introduction, pp.1-15, Electronic copy available at
http://ssrn.com/abstract=1048441.
3. Union of India v. Azadi Bachao Andolan and Ors., 263 ITR 706 (SC);
4. McDowell & Co. Ltd. v. CTO, (1985) 3 SCC 230;
5. Paranjoy Guha Thakurta and Shinzani Jain, Thin Dividing Line India Mauritius and Global Illicit Financial Flows, Penguin
Random House India, 2017, New Delhi, pp. 37-65;
6. Shashwat Sharma and Meyyappan Nagappan, GAAR Provisions: The Need for Internationally Accepted Restrictions on
Application, Asia-Pacific Tax Bulletin, 2018 (Volume 24), No. 1, pp.1-10.
7. OECD BEPS Action Plans https://www.oecd.org/tax/beps/beps-actions/

Week 14: Transfer Pricing: Key Concepts

• Concept of Transfer Pricing & Arm’s length Principle
• Transfer Pricing Methods
• Safe harbour Rules and APAs
• Mutual Agreement Procedure
Essential Readings:
Fundamentals of Transfer Pricing: General Topics and Specific Transactions, Raffaele Petruzzi, Giammarco Cottani, Michael Lang,
2021 edition Kluwer International

OECD Transfer Pricing Guidelines OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022
Accessed at < https://www.oecd.org/tax/transfer-pricing/oecd-transfer-pricing-guidelines-for-multinational-enterprises-and-tax-
administrations-20769717.htm>
 Week 15 Digital Taxation

● Importance of Digital Taxation and limitations of source rule/PE in DTAAs

● Equalization Levy and its Future
● OECD & UN Developments
● Tax implications through the Significant Economic Presence Test/Digital PE

Essential Readings:

OECD/G20 Inclusive Framework on BEPS: Progress Report September 2022-September 2023 accessed at <
https://www.oecd.org/tax/beps/oecd-g20-inclusive-framework-on-beps-progress-report-september-2022-september-2023.htm>