Course Handout_ Principle of Taxation Law

Course Handout
Course details
Faculty name Mr. Adwitiya Prakash Tiwari
Programme BALLB/BBALLB/LLB
1 Semester
Section
Course code BAL/BBL-X20 CP /LLB367 CP
Course title International Taxation
Vision of the School of Law
2 To be globally recognised for Pragmatic Hands-on Experiential Legal Education,
emphasizing on Research, Innovation and Value Based Education
Mission of the School of Law
 Establish State-of-art facilities for world class legal education and research.
 Make students industry ready such that they are grounded with legal
3 knowledge and equipped with skills required for the legal profession.
 Develop Students' critical analytical and legal reasoning skills through students'
centric approach and innovative pedagogy. 
 Prepare ethical professionals, emphasizing on Justice Education
Programme educational objectives(PEOs)
PEO1 Ensuring inculcation of advocacy skills.
PEO2 Students will have Oral and Written Communication skills
4 Preparing them to be ethical and legal professionals who will be
PEO3
socially responsible while meeting their own career goals
Will be industry-ready with strong legal research and problem solving
PEO4
skills
Programme outcomes
PO1 Appraise the tax system prevailing in India and abroad.
To provide visible means of inhencing knowledge in all aspect of
PO2
international taxation
To inculcate a problem solving approach with a view to assist
PO3 management decision making and managing the practice of
international taxation.
5 Developthe accuman of student through knowledge relating various
PO4
aspect of international taxation.
Propose better international tax governance applying the knowledgeof
PO5
the provisions of tax to various situations with respect to India.

Programme specifics outcome(PSO) (if any)

Students will develop research aptitude using doctrinal and non
PSO1
doctrinal research
Students will inculcate argumentative skills through presentations,
PSO2
6 student seminars, research paper,workshop.
Students will integrate research with theoretical aspects of the
PSO3
subjects by practical and drafting skills
Students will develop social and ethical values required to make a
PSO4
budding lawyer responsible in their career
 Course Handout_ Principle of Taxation Law

Course outcomes (COs): Students will be able:

To understand the foundational and practical elements of tax
CO1
system prevailing in India
To apply and validate the co-relation between tax and
7 CO2
development in a country.
To analize the knowledge of the provisions of direct and indirect tax
CO3
laws to various situation in actual practice.
CO4 To appraise the taxation laws in India especially GST act.
Evaluation Marks Date Nature of Evaluation
Duration
Component (40) &Time Component Component
Between
50
CAT-1 90 minutes 26th Feb to Closed Book CAT-1
(10) nd
2 March
Between
50
CAT-2 90 minutes 11th April to Closed Book CAT-2
(10) th
18 April
Research Project
8 Between
10 mins for
 Synopsis 5 12th to 15th
each student
Feb 2019 Open book
Between and e-data
5 mins for Internal
 Presentation 5 2nd to 8th base from
each student
Mar 2019 library
 Final Between
5 mins for
submission & 10 23th to 27th
each student
viva April 2019
9 List of teaching –learning pedagogy
 Chalk and talk
 Case study discussion
 Flip class
 Classroom exercise
10 Open hour for students
1:30 PM to 3:30 PM (Wednesday)
11 Link address for course materials
https://gu.mastersofterp.in/rfcampusgu/academic/attendanceTimeTableView
12 Recommended list of e-books.
 Taxmann
 LexisNexis
 Westlaw
 Manupatra
13 Recommended list of online courses like SWAYYAM/NPTEL/MOOCS etc
14 Recommended list of mini projects / projects/ technical training etc.

15 Students’ Presentation
16 List of e-books

17 List of NPTEL/MOOCS/SWAYAM/Courses/Video
18 Content beyond Syllabus

19 List of mini projects/projects

Course Handout_ Principle of Taxation Law
 Course Handout_ Principle of Taxation Law

LESSON PLAN

BALLB/BBALLB/LLB

Reference
Lecture Learning Topics and Sub Topics Course Total
Chap./Sec.
No. Objectives to be covered Module Lectures
(Book)

1 Introduction

Economic analysis of

2 international taxation

Definition of Assessee,
3
What is treaty

Definition double Module- Chapters 1, of

4 8
avodence agreement I R4
Students get to Impact of double
5 understand the taxation avoidance
basic nature agreement in India
and scope of
Taxing Uitility of double
6
objectives and avoidance agreement
constitutional
Type of income which
developments.
7 fall under the double
avoidance agreement

History and background

8
of double taxation

Residential Status and

9
Tax Liability

Constitution of India
10
and Tax Laws
To clarify and Tax Incidence on Non
develop Resident
11 understanding
Module- Chapter 2, 3,
of students 6
II 4, 5 & 6 of R4
about various
12 heads & Heads of Income
concept of
 Course Handout_ Principle of Taxation Law

Incomes Exempt in the

hands of Non-

13 Resident/Foreign
company [Section 10]

Special provisions for

computing profits and
gains in case of Non-

14 Residents
[Deemed/Presumptive
Income/Taxation]

Charge of Tax on
Incomes Arising to Non
Income
Residents or Foreign

15 Companies –Special
Rates [Section 115A to
115BBA]

Special Provisions
Relating to Certain
Incomes of Non-
16 Resident Indian
Specified Asset

How to determine
17
nature of income.
To make Concept of Advance Module- 6 Chapter 7 & 8
III of R4
18 students Ruling
understand
about Who can seek Advance
ADVANCE Ruling?
19
RULING

20 Authority for Advance

Ruling (AAR) (Section
 Course Handout_ Principle of Taxation Law

245O)

Application for Advance

21 Ruling (Section 245Q)

Powers of the Authority

(Section 245U) and
Applicability of
22
Advance Ruling
(Section 245S)

Students to Introduction,Importance 12 Chapter 2 to

12 of R4
23 understand of transfer pricing
about
TRANSFER Transfer pricing Module-
PRICING IV
24 provisions in india

What is arm’s length

price?

25 Associated Enterprises
(AE)

Meaning of international

26 transaction

Transfer pricing –
Applicability to
27 Domestic Transactions

28 Transfer Pricing –
Methods, Reference to
Transfer Pricing Officer
 Course Handout_ Principle of Taxation Law

Transfer Pricing –
Penalty for
Contravention

Advance Pricing
Agreement, Transfer

29 pricing –
Documentation

Students Agreements with

understand
Foreign Countries or
about
30 DOUBLE Specified Territories
TAXATION
(Section 90)
AVOIDANCE
AGREEMENT
S
Adoption by Central
Government of
Agreement between
31
Specified

Associations for Double

Taxation Relief (Section
32
90A)

Countries with which no

Agreement Exists
33 (Section 91)

Taxation of Income
from Air and Shipping
34
Transport under DTAA

35 Permanent
Establishment (PE)
 Course Handout_ Principle of Taxation Law

Foreign Tax Credit

36

Passive Foreign
Investment Company
Module Chapter 4,
37 (PFIC) 10
V 9,11 of R4

38 Necessity for DTAA

Assessing the impact of

39 DTAA.

ANALYSING THE
40
PROVISION OF DTAA

Catalog Description

Power to tax had been described as the power to destroy. This idea is being floated often
whenever the state introduces a new tax. In order to raise revenue and place the economy on
solid foundation, it is necessary that the taxing power should be conferred on the state. The
power to tax shall not go unregulated. In the context of a federal structure the distribution of
the taxing powers assumes added significance. A study of the constitutional framework on
taxation is also important for all these abovementioned reasons. Along with this, this course
aims at an analysis of the different laws enacted in exercise of these powers with their
safeguards and remedies sheds light on the mechanics of the taxation by the Union and the
States.
Text Books
1. Kanga, Palkiwala and Vyas, “The Law and Practice of Income Tax”, 10th Edition, Vol. I
& II, Lexis Nexis Butterworths, 2014
2. V.K. Singhania & Monica Singhania, “Direct Tax Law & Practice”, 49th Edition,
Taxmann Publications Pvt. Ltd., New Delhi, 2013-14

Reference Books
 Course Handout_ Principle of Taxation Law

1. Dr. V. Gaurishanker, “Principle of Taxation”, First Print, Wolters Kluwer, New

Delhi, 2007
2. Dr. Girish Ahuja & Ravi Gupta, “Professional Approach to Direct Taxes: Law and
Practice”, 19th edition, Bharat Publication, New Delhi, 2012-13
3. S.Rajratanam, “Tax Planning (Issue, Ideas, Innovations)”, Bharat Publication, New
Delhi, 2009
4. Sampat Iyenger’s “Income Tax Law”,11th edition, Bharat Publication, 2012
5. Geoffrey Morse and David Williams, “Davies: Principles of Tax Law”, Sweet &
Maxwell Publication, 2010
6. Chaturvedi & Pithisaria, “Income Tax Law”, 5th Edition, Wadhwa & Company, 2010

Course Content

Module 1: Introduction
 Economic analysis of international taxation
 History and background of double taxation,
 What is treaty,
 Impact of double taxation avoidance agreement in India,

Reading Material:
1. Kanga, Palkiwala and Vyas, The Law and Practice of Income Tax, 10th Edition,
2014, Vol.I & II, Lexis Nexis Butterworths.
2. Study of Monthly Journals of the ICAI, ICSI and ICWA of India.
3. Chaturvedi & Pithisaria Income Tax Law, 5th Editon Reprint 2010 Wadhwa &
Company.
4. V.K. Singhania, Direct Tax Law & Practice, Professional Edition, 2015-16
Taxmann.
5. Dr.V.Gaurishanker, Principle of Taxation, First Print, 2007 Wolters Kluwer, New
Delhi.
6. Dr. Girish Ahuja & Ravi Gupta; Professional Approach to Direct Taxes, Law and
Practice, 20 th edition 2014-15 Bharat Publication, New Delhi
7. S.Rajratanam, “Tax Planning(Issue,Ideas,Innovations), 2009 Bharat Publication,
New Delhi
8. Sampat Iyenger’s “Income Tax Law”. 11 editions 2012, Bharat Publication.
9. Geoffrey Morse and David Williams, “Davies: Principles of Tax Law”2010 Sweet &
Maxwell Publication.
 Course Handout_ Principle of Taxation Law

Articles:
1. T.N.Pandey., “Evolution and Development of Direct Tax Laws” Fifty Years of
The Supreme Court. Oxford
2. Nisha Bhandari., “Colurable Devices Not part of Tax Planning”, (2007) 98 (1)
The Tax Referencer
Cases:
1. Bacha F. Guzdar vs C.I.T. Bombay AIR (1955) SC 74
2. C.I.T. vs Sunil J. Kinariwala (2003) 1 SCC 660
3 C.I.T. vs Benoy Kumar Sahas Roy AIR (1957) SC 768
4 V.V.R.N.M. Subbayya Chettiar vs C.I.T. AIR (1951) SC 101
5 K. Lakshman & co vs CIT (1999) 239 ITR 596 SC
6 In Re: Pfizer Corporation Vs Respondent 2004(271) ITR 101 (AAR)
7 CIT Vs R. D. Aggarwal & Co. (1965) 56 ITR 20 (SC)
8 Clifford chance Vs DCIT (2009) 176 TAXMAN 458 (Bom HC)
9 Ishikawajima-Harima Heavy Industries Ltd, v. Director of I.T(2007) 288 ITR 408
(SC).
10 CIT Vs Soundarya Nursery (2000) 241 ITR 530 (MAD)
11 Vodafone International Holdings B.V. v.UOI (2012) 1 Comp LJ 225 (SC)
12 Linklaters LLP Vs ITO, International Taxation 2010 ITAT Mumbai
13 Pradip J. Mehta Vs CIT (2008) 300 ITR 231 (SC)
14 GVK Industries Vs ITO 2011 3 SCALE 111
15 UOI v H.S. Dhillon AIR 1972 SC 1061

Module 2: TAXATION OF NON-RESIDENTS ENTITIES

 Tax Incidence on Non Resident
 Incomes Exempt in the hands of Non-Resident/Foreign company [Section 10]
 Special provisions for computing profits and gains in case of Non-Residents
[Deemed/Presumptive Income/Taxation]
 Charge of Tax on Incomes Arising to Non Residents or Foreign Companies –Special
Rates [Section 115A to 115BBA]
 Special Provisions Relating to Certain Incomes of Non-Resident Indian Specified
Asset

Reading Material:
 Course Handout_ Principle of Taxation Law

1. Kanga, Palkiwala and Vyas, The Law and Practice of Income Tax, 10th Edition,
2014, Vol.I & II, Lexis Nexis Butterworths.
Study of Monthly Journals of the ICAI, ICSI and ICWA of India
2. Chaturvedi & Pithisaria, Income Tax Law, 5th Editon Reprint 2010 Wadhwa &
Company.
3. V. K. Subramani, Taxation of Capital Gain,2008, Taxman
4. V.K. Singhania, Direct Tax Law & Practice, Professional Edition 2015-16
Taxmann.
5. Dr.V.Gaurishanker, Principle of Taxation, First Print, 2007 Wolters Kluwer, New
Delhi.
6. Dr. Girish Ahuja & Ravi Gupta; Professional Approach to Direct Taxes, Law and
Practice, 20 th edition 2014-15 Bharat Publication, New Delhi
7. S.Rajratanam, “Tax Planning (Issue,Ideas,Innovations), 2009 Bharat Publication,
New Delhi
8. Sampat Iyenger’s “Income Tax Law”. 11 editions 2012, Bharat Publication.

Articles:
1. Dr. V.K. Singhania., “Withdrawal of FBT and its inpact on Employees” July 1 to
15 2009 Taxmann corporate professionals today.
2. Wadhwa S.R., “Disallowance of expenses under section 40(a)(ia) of Income Tax
act,” CTR 2005
3. Agarwal S.N., “Offering Unexplained Income” Taxmann 2006
Cases:
1. CIT Vs Woodward Governor (2009) 312 ITR 254 (SC)
2. ACIT Vs Elecon Engineering (2010) 189 TAXMAN 83 (SC)
3. Ram Prasad Vs C.I.T. (1972) 2 SCC 696
4. East India Housing& Land Development Trust Ltd V CIT (1961) 42 ITR SC
5. Bharat Earth Movers Vs CIT (2000) 245 ITR 428 (SC)
6. Grace Collis and others Vs CIT (2001) 248 ITR 323 (SC)
7. CIT Vs Madras Auto Services Ltd. (1998) 233 ITR 468 SC
8. CIT Vs National Storage (P) Ltd. (1967) 66 ITR 596 (SC)
9. CIT Vs Travencore Suger & Chemicals Ltd AIR 1973 SC 982
10. ONGC Vs CIT AIR 2010 SC 1927
11. Attukal Shopping Complex P. Ltd Vs C.I.T.(2003) 259 ITR 567 SC
12. CIT Vs Infosys Technology (2008) 237 ITR 167 (SC)
13. CIT Vs Macdowell & Co. (2009) 314 ITR 167 SC
 Course Handout_ Principle of Taxation Law

14 CIT Vs Doom Dooma India Ltd (2009) 310 ITR 392 SC

15 Navin Jindal Vs ACIT (2010) 320ITR 708 SC
16 CIT Vs Ghanshyam (HUF) (2009) 315 ITR 1 SC
17 Techno Shares & Stocks Ltd Vs CIT 2010 SC
18 Guffic Chem P.Ltd. Vs CIT 2011 (332) ITR 602 SC
19 CIT v BC Srinivasa Setty AIR 1981 SC 972
20 CIT v Rajendra Prasad Moody (1978) 115 ITR 519 SC

Module 3: ADVANCE RULING

 Concept of Advance Ruling
 Who can seek Advance Ruling?
 Authority for Advance Ruling (AAR) (Section 245O)
 Application for Advance Ruling (Section 245Q)
 Powers of the Authority (Section 245U)
 Applicability of Advance Ruling (Section 245S)
 Question Precluded
 Advance Ruling to be Void [Section 245T]

Reading Material:
1. Kanga, Palkiwala and Vyas, The Law and Practice of Income Tax, 10th Edition, 2014,
Vol.I & II, Lexis Nexis Butterworth’s.
2. Study of Monthly Journals of the ICAI, ICSI and ICWA of India.
3. Chaturvedi & Pithisaria, Income Tax Law, 5th Edition Reprint 2010 Wadhwa &
Company.
4 V.K. Singhania, Direct Tax Law & Practice, Professional Edition 2015-16 Taxmann.
5 Dr. Girish Ahuja & Ravi Gupta; Professional Approach to Direct Taxes, Law and
Practice, 20 th edition 2014-15 Bharat Publication, New Delhi
6 S.Rajratanam, “Tax Planning(Issue,Ideas,Innovations), 2009 Bharat Publication, New
Delhi
7 Sampat Iyenger’s “Income Tax Law”. 11 editions 2012, Bharat Publication.
Articles:
1. Agarwal S.N., “Real Estate Sector and Income Tax” Taxmann 2006

Module 4: TRANSFER PRICING

 Introduction
 Importance of transfer pricing
 Course Handout_ Principle of Taxation Law

 Transfer pricing provisions in india

 What is arm’s length price?
 Associated Enterprises (AE)
 Meaning of international transaction
 Transfer pricing – Applicability to Domestic Transactions
 Transfer Pricing – Methods
 Reference to Transfer Pricing Officer
 Advance Pricing Agreement
 Transfer pricing – Documentation
 Transfer Pricing – Penalty for Contravention

Reading Material:
1. Kanga, Palkiwala and Vyas, The Law and Practice of Income Tax, 10th Edition, 2014,
Vol.I & II, Lexis Nexis Butterworths.
2. Study of Monthly Journals of the ICAI, ICSI and ICWA of India.
3. .Chaturvedi & Pithisaria, Income Tax Law, 5th Editon Reprint 2010 Wadhwa &
Company.
4. V.K. Singhania, Direct Tax Law & Practice, professional Edition,2015-16 Taxmann
5. Dr. Girish Ahuja & Ravi Gupta; Professional Approach to Direct Taxes, Law and
Practice, 20 th edition 2014-15 Bharat Publication, New Delhi
6. S.Rajratanam, “Tax Planning(Issue,Ideas,Innovations), 2009 Bharat Publication, New
Delhi
7. Sampat Iyenger’s “Income Tax Law”. 11 editions 2012, Bharat Publication.

Module 5: DOUBLE TAXATION AVOIDANCE AGREEMENTS

 Agreements with Foreign Countries or Specified Territories (Section 90)
 Adoption by Central Government of Agreement between Specified
 Associations for Double Taxation Relief (Section 90A)
 Countries with which no Agreement Exists (Section 91)
 Necessity for DTAA
 Taxation of Income from Air and Shipping Transport under DTAA
 Permanent Establishment (PE)
 Foreign Tax Credit
 Passive Foreign Investment Company (PFIC)

Reading Material:
 Course Handout_ Principle of Taxation Law

1. Kanga, Palkiwala and Vyas, The Law and Practice of Income Tax, 10th Edition, 2014,
Vol.I & II, Lexis Nexis Butterworths.
2. Study of Monthly Journals of the ICAI, ICSI and ICWA of India.
3. Chaturvedi & Pithisaria, Income Tax Law, 5th Editon Reprint 2010 Wadhwa &
Company.
4. V.K. Singhania, Direct Tax Law & Practice, professional Edition 2015-16 Taxmann
5. Dr. Girish Ahuja & Ravi Gupta; Professional Approach to Direct Taxes, Law and
Practice, 20 th edition 2014-15 Bharat Publication, New Delhi
6. S.Rajratanam, “Tax Planning(Issue,Ideas,Innovations), 2009 Bharat Publication, New
Delhi
7. Sampat Iyenger’s “Income Tax Law”. 11 editions 2012, Bharat Publication.

EVALUATION CRITARIA FOR RESEARCH PROJECT

1. Research project will be the internal assessment for the subject of Taxation Laws I.
2. The lists of project topics have been mentioned below. The list is suggestive so students
can also choose a topic of their choice but that is required to be approved by the faculty.
3. The schedules for the submission of every stage of research project have also been
mentioned below.
4. The research project writing will be in the following phases:

 Submission of Synopsis/abstract
 Synopsis/Abstract Presentation
 Rough/ first Draft Submission
 Submission of final project/article
5. Synopsis should include:
 Statement of problem,
 Objectives,
 Review of Literature
 Methodology (including data collection method, if empirical)
 Research Question(s),
 Hypothesis(not compulsory)
 Tentative Chapterization
 Course Handout_ Principle of Taxation Law

6. Viva voce will be done on the basis of their final submission of research project. No
viva will be taken without the submission of research project.

RESEARCH PROJECT TOPICS

1. An analysis of direct and indirect tax

2. Advantages and Disadvantages of DTAA’s
3. Comparative analysis of DTAA policy of INDIA, CHINA, US, Russia and Germany
4. Advantages and Disadvantages of DTAA’s
5. DTAA’s and Protection of National Interest: Issue of growing together
6. DTAA’s and Protection of National Interest
7. Role of Tax Heaven & its effect on economy
8. Comparative analysis of DTAA policy of INDIA, CHINA, US, Russia and Germany
9. DTAA’s and Protection of National Interest: Issue of growing together
10. Capital Gains
11. Comparative analysis of DTAA policy of INDIA, CHINA, US, Russia and Germany
12. Income from Royalty
13. Income from Technical Service/Fees
14. Partnership and Tax Provisions
15. Law of natural justice and interpretation of statutes
16. Role of Tax Heaven & its effect on economy in Double Taxation avoidance
agreement : Issue of Treaty Shopping
17. Role of Tax Heaven & its effect on economy in Double Taxation avoidance
agreement : Issue of Black Money
18. Taxation of Corporation
19. Specific Deduction
20. ‘DTAAs vs National Legislation’- Examination of Executive Action & Judicial
Protection worldwide.

MARKING CRITARIA

Sr. No. Description Mark

1 Synopsis 5 Mark
2 Presentation of Synopsis 5 Mark
3 Final project submission 5 Mark
4 Viva Voce 5 Marks