McDowell & Co. Ltd. v. CTO
(1985) 3 SCC 230 · Supreme Court of India
Tax avoidance through dishonest or colourable devices may be ignored.
Unit IV · Law of Taxation
Tax planning, treaty shopping and GAAR
Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.
Statute sections
| Act / instrument | Section | Name |
|---|---|---|
| Income-tax Act, 1961 | 90 | Agreement with foreign countries (DTAA) |
| Income-tax Act, 1961 | 95–102 | General anti-avoidance rule |
| Income-tax Act, 1961 | 195 | Withholding on payments to non-residents |
Landmark cases
Union of India v. Azadi Bachao Andolan
(2004) 10 SCC 1 · Supreme Court of India
Treaty shopping under the Indo-Mauritius DTAA was not, by itself, a colourable device.
Vodafone International Holdings BV v. Union of India
(2012) 6 SCC 613 · Supreme Court of India
Look-through taxation of an offshore share transfer was rejected absent a clear charging provision.