Dy. Commissioner Of Income Tax, Ujjain vs Torqouise Investment & Finance Ltd

The Supreme Court upheld the decision of the Income Tax Appellate Tribunal (ITAT) that dividend income earned by the assessee from a Malaysian company is not taxable in India under the Income Tax Act, 1961, specifically referencing Section 5(1)(c) and Article XI of the Double Taxation Avoidance Agreement (DTAA) between India and Malaysia. The Court affirmed that the provisions of the DTAA take precedence over the Income Tax Act when there is a conflict, thereby ruling in favor of the assessee. The appeal by the revenue was dismissed, confirming the ITAT's findings.