India Income Tax Appellate Tribunal Rules on Taxation of Income from Indian Depository Receipts Deriving Value from Foreign Companies

India's Income Tax Appellate Tribunal (ITAT) recently issued a decision concerning the taxation of income from Indian depository receipts (IDRs) as Indian-source income when the underlying value of the instruments is derived from foreign companies. The case involved a tax resident of Mauritius that invested in IDRs issued by the India Branch of Standard Chartered Bank (SCB), the underlying assets of which are shares of SCB UK. During the 2014-15 financial year (2015-16 assessment year), the M…