The Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 27 June 2008 in the case of Deputy Director of Income Tax v. Sun Chemicals BV (unreported) on whether the Indian tax authorities could deny a Dutch company the benefits of the India-Netherlands tax treaty (the Treaty) on the basis that the company had defaulted in complying with certain requirements of the transfer pricing regulations. (a) Facts. The Taxpayer (i.e. Sun Chemicals BV) is a Netherlands-based company, which filed its tax return in India declaring losses on the sale of shares of Indian companies. The Taxpayer reported long-term capital losses...