The Hindu Business Line : I-T Dept moves SC in Morgan Stanley case

New Delhi, Oct. 27 The Income-Tax Department has moved the Supreme Court seeking the review of its judgment in the Morgan Stanley’s captive business process outsourcing case.

In its review petition, filed recently, the department has urged the apex court to set aside its July 9 verdict.

The Supreme Court had held that no portion of the global income of the US investment banking firm, Morgan Stanley, was liable to be taxed under the income-tax law.

The review petition has sought to submit that the fact that the Indian company receiving payment from a foreign company on an arm’s length basis does not mean that the Permanent Establishment was extinguished.

“The review petition acknowledges that the arm’s length payment to an Indian company neutralises permanent establishment.

Hence should the review petition be dismissed by Supreme Court, this principle will then become more firmly grounded,” Mr Ketan Dalal, Executive Director, PricewaterhouseCoopers, told Business Line.

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I-T Dept moves SC in Morgan Stanley case