Cairn energy arbitration against India

Question 1

What was the case?

Answer 1

Cairn had challenged the Indian government seeking taxes over an internal business reorganisation using the 2012 retrospective tax law, under the UK-India Bilateral Investment Treaty.

[CAIRN NE INDIA CHYA RETROSPECTIVE LAW VAR AAKSHEP GHETLAY]

Question 2

What are Bilateral Investment Promotion and Protection Agreements?

Answer 2

agreements between governments of two Countries for the appropriate corresponding promotion and protection of investments in each other’s territories by individuals and companies situated in either State. This ensures a safe cross-border movement of capital among countries

[FOR SAFE CROSS BORDER MOVEMENT OF GOODS,SERVICES,CAPITAL]

Question 3

Income Tax Appellate Tribunal?

Answer 3

statutory body in the field of direct taxes and its orders are accepted as final, on findings of fact.
[STATUTORY BODY IN FIELD OF DIRECT TAX]

first Tribunal to be created AKA ‘Mother Tribunal’.

With a view to ensuring highest degree of independence of the ITAT, it functions under the Department of Legal Affairs in the Ministry of Law and Justice and is kept away from any kind of control by the Ministry of Finance.
[WORKS UNDER MINISTRY OF LAW & JUSTICE ; AWAY FROM FINANCE MINISTRY]

Question 4

Functioning of ITAT?

Answer 4

It is the second appellate authority under the direct taxes and first independent forum in its appellate hierarchy.

Appeal to ITAT orders before the respective High Court.

single member bench of ITAT -> Can oversee appeal of upto 50 lakh