{
  "id": 15463928,
  "title": "Global investors against use of judicial anti-avoidance rule by tax officials",
  "url": "https://urgent.news/2026/10/18/global-investors-against-use-of-judicial-anti-avoidance-rule-by-tax",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-18T17:47:00.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/global-investors-against-use-of-judicial-anti-avoidance-rule-by-tax-officials/articleshow/135033062.cms"
  },
  "original_language": "en",
  "account": "Mumbai: International investors have expressed worry to Indian tax officials over the use of the judicial anti-avoidance rule (JAAR) by Income-tax authorities to deny benefits. The issue has become a concern for foreign direct investors, including MNCs, private equity firms and venture capital funds. The JAAR was used to reject tax benefits claimed by at least three Mauritius investors on the sale of shares acquired before April 1, 2017. Most foreign investors and tax professionals believe this goes against New Delhi's intent and should be resolved promptly. A week ago, 135033213 investors from the Asia Securities Industry & Financial Markets Association (ASIFMA) met CBDT officials to voice their concern. The industry body has positioned itself to discuss policy matters with regulators, central banks and governments. However, addressing the JAAR issue through a circular may face legal hurdles. The government needs to amend the law, according to one person. The contention lies in the use of JAAR after CBDT prohibited the use of GAAR for grandfathered shares. Both GAAR and JAAR are anti-abuse provisions that, when used together, tax investors taking advantage of artificial structures to claim tax benefits. The CBDT is of the view that any regulatory change should ideally be done through a change in law, as the Supreme Court ruled in January 2026 that both GAAR and JAAR can be invoked together or separately.",
  "summary": "International investors have raised concerns regarding the Indian Income-tax authorities' invocation of the judicial anti-avoidance rule. At a recent meeting, investors communicated their issues with the Central Board of Direct Taxes on this matter. The use of JAAR to deny relief on grandfathered shares contradicts prior regulations established by the CBDT. The standing of both GAAR and JAAR…",
  "key_points": [
    "International investors worry over JAAR use by Indian tax officials.",
    "JAAR denied tax benefits to Mauritius investors in three cases.",
    "ASIFMA meets CBDT officials to address policy concerns."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}