The Indian Income Tax Appellate Tribunal (ITAT) delivered a ruling in the case of Morgan Stanley Asset Management Inc. v. Joint Commissioner of Income Tax (6 SOT (Mumbai)) dated 22 November 2005 (reported in June 2006) dealing with the issue of whether the company would be eligible for preferential rate of tax for a particular head of income. (a) Facts. The taxpayer (i.e. Morgan Stanley Asset Management Inc.) was a company registered in the United States and received income in the nature of capital gains, dividends and interest. The taxpayer had claimed the benefit of the India-US tax treaty (the...