The Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 29 August 2008 in the case of Oracle India Pvt. Ltd. v. Deputy Commissioner of Income Tax (2008-TIOL-399-ITAT-DEL) on whether royalty payments at a rate of 30% to the holding company was excessive and constituted a tax avoidance arrangement.

(a) Facts. The Taxpayer (i.e. Oracle India Pvt. Ltd.) had c…

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