The Indian High Court, in its decision dated 26 November 2012 in the case of CIT v. Enron Oil & Gas Expat Services Inc. (29 taxmann.com 419) (published in January 2013) held that the presumptive basis of taxation is subject to the beneficial provisions of article 7 of the India - United States Income Tax Treaty (1989) (Tax Treaty).

While delivering its decision, the…