Income Tax Department Appeals Before Delhi High Court Against Major Tax Relief to Clifford Chance Law Firm

The Income Tax Department has appealed to the Delhi High Court against an Income Tax Appellate Tribunal (ITAT) decision that significantly reduced the tax liability of Clifford Chance, a global law firm.

The ITAT had earlier ruled that only a portion of the firm’s India-sourced income was taxable, dismissing the department’s claim of higher dues.

The case revolves around the interpretation of permanent establishment and tax treaties. 

The department argues the ITAT order undermines tax compliance for foreign legal entities. 

[Commissioner of Income Tax (International Taxation) v Clifford Chance Pte Ltd.]