Recent Case Law: Indirect Transfer of Interest and Controlling Stake in an Indian Company Held Taxable

This article analyses a recent ruling of the Authority for Advance Ruling (AAR) in the case of Groupe Industrial Marcel Dassault and Murieux Alliance wherein the AAR held that, despite a transaction being legally valid but having the purpose to create a legal smokescreen to avoid the payment of tax, the legal effect of such transaction in the context of the taxing statute must be considered in determining the taxability of that transaction.