On Thursday, it was reported that the government has filed an appeal at the Singapore seat of the permanent court of arbitration challenging the judgment in the Vodafone retrospective taxation case. The government should accept the orders, and ensure a proper burial to the issue of retrospective taxation. The Cairn issue pertains to tax demand on capital gains made by the company in the reorganisation of its business. In fact, in the Vodafone case, the Supreme Court held in 2012 that Vodafone’s interpretation of the Income Tax Act, 1961 was correct. The government must distance itself from the issue of retrospective taxation that has caused much damage to India’s reputation.

Source: Indian Express December 24, 2020 18:33 UTC