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Supreme Court Upholds Power of Parliament to Enact Laws with Extra-Territorial Jurisdiction

India
7 Mar 2011

A five judge constitution bench of the Supreme Court ("SC") has delivered a landmark ruling in the case of GVK Industries upholding the legislative competence of the Parliament to enact laws that have extra-territorial jurisdiction if territorial nexus exists. Taxand India discusses the case.

 

Taxand's Take


The decision of the SC is a landmark ruling affirming the legislative competence of the Parliament to enact laws that extend to extra-territorial aspects, but circumscribing such powers to aspects that have nexus with India or Indians.

It is expected that the tax bench of the SC would apply the principles laid down by the Constitutional bench and decide whether the provisions of section 9(1)(vii) of the Act passes the territorial nexus test.

Your Taxand contact for further queries is:
Mukesh Butani
T. +91 124 339 5010
E. mukesh.butani@bmradvisors.com

Taxand's Take Author

Mukesh Butani
Taxand Board member
India