Case Law Analysis
|Income Tax Appellate Tribunal
DTAA Supremacy Over Domestic Law | ITAT Mumbai Caps Dividend Distribution Tax at Treaty Rate Under Section 90(2) : ITAT
ITAT Mumbai rules that Dividend Distribution Tax (DDT) under Section 115-O cannot exceed the lower rate prescribed in the India-Switzerland Double Taxation Avoidance Agreement (DTAA). The decision reinforces treaty supremacy under Section 90(2) of the Income Tax Act, directly impacting multinational corporations distributing dividends to foreign shareholders.