Delhi ITAT sets aside AO’s
order applying tax rate @20% u/s 115A on FTS received by Ericsson Telephone
Corporation India (assessee, a Swedish company) during AY 2000-01 from its AEs
in India for installation and maintenance of mobile network systems, remits
matter back to AO to decide the issue afresh in light of the Protocol amending
India-Sweden DTAA; Notes that AO had arrived at the taxability by simply
following the AAR in assessee’s own case rendered in 1996 which was based on
un-amended DTAA however, takes note of Protocol amending India-Sweden DTAA
subsequently in 1997; Considering the revised DTAA, ITAT rules that AO should
examine assessee’s argument that in view of the Most Favored Nation (‘MFN’)
clause in the Protocol, a beneficial FTS article appearing in DTAA with a third
country (i.e. Finland) should be read into the DTAA with Sweden; Rejects
Revenue’s preliminary argument that Protocol will have no application as it can
be resorted only if there is some dispute on the terms of the DTAA, remarks
that, “A Protocol to the DTAA is …to be considered as its part and parcel. …If
a particular benefit is being conferred, expanded or reduced by the Protocol,
which is absent in the DTAA, then the provisions of the Protocol shall apply
pro tanto.”; Thus, holds that a Protocol cannot be viewed as a document
independent of the DTAA and has to be considered as its addendum.:ITAT
Subscribe to:
Post Comments (Atom)
CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024
This Tax Alert summarizes Circular No. 19/2024 dated 16 December 2024 (VSV 2- December Circular) issued by the Central Board of Direct Tax...
-
PCIT vs. The Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) S. 50C Capital Gains: The valuation of the stamp autho...
-
This Tax Alert summarizes a recent ruling of the Supreme Court (SC) [1] on availability of CENVAT Credit on mobile towers and pre-fabrica...
-
IFRS and US GAAP - Similarities and Differences What is IFRS? And what is GAAP? The main difference between IFRS and US GAAP is that G...
-
Madras HC reverses ITAT's order, grants deduction u/s. 80P(2)(a)(i) to assessee (a society engaged in the business of banking and provi...
-
SC dismisses assessee-company’s SLP challenging Bombay HC order upholding re-assessment initiation (beyond 4 yrs period) based on a special...
-
SC dismisses Revenue’s SLP challenging Bombay HC order in case of assessee (belonging to Lodha group of companies engaged in real estate bu...
-
Claiming a foreign tax credit (FTC) in Australia allows companies to offset foreign taxes paid on income earned overseas against their Aust...
-
HC allows HDFC Bank’s writ petition, quashes AO’s order and subsequent reference to TPO alleging that certain related party transactions [p...
-
Delhi ITAT deletes Rs. 1558.57 cr. capital gains addition on Telenor India for AY 2014-15, holds that set off of non-refundable entry fee p...
-
This Tax Alert summarizes a recent ruling of the Bombay High Court (HC)1 on admissibility of input tax credit (ITC) w.r.t GST on advance p...
No comments:
Post a Comment