Retrospective amendment to Income-tax Act has no impact on DTAA & Corporate veil can’t be lifted in case transactions are genuine – HC

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HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD

Date- 15.02.2013

W.P.Nos. 14212 of 2010, 3339 and 3358 of 2012

M/s. Sanofi Pasteur Holding SA

Versus

The Department of Revenue ,

Ministry of Finance,

Government of India, New Delhi and others

 

The retrospective clarificatory amendments (vide the Finance Act, 2012) do not seek to override the DTAA. In case of a conflict between the domestic law and the DTAA, DTAA will prevail, in terms of Section 90 of the Act.

The corporate veil can’t be lifted in case the transactions are genuine and are not entered into for tax avoidance.