Global funds likely to contest I-T dept's order on tax treaty misuse

The I-T department observes irregularities in tax filings of 2013-14, 2014-15, and 2015-16

Most global funds have filed objections before the dispute resolution panel (DRP) against the tax order issued by the income-tax (I-T) department for under-reporting income by misusing tax treaties, said two people privy to the development.

Some foreign funds have written to the respective assessing officers stating they would file an appeal to the Commissioner of Income-Tax (Appeals), or CIT(A), requesting a final order in the matter, they said.

The move follows the draft assessment orders issued to over a dozen global private equity (PE) funds under Section 144C of the I-T Act, related to unassessed income. Tax rules provide assessees the