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2012 (10) TMI 572 - AT - Income TaxInterest on interest on delayed refund – Held that:- Following the decision in assessee’s own case that where refund is granted without any delay, the question of granting interest on interest will not arise. Issue decides in favour of revenue Interest u/s 234D – Held that:- If the regular assessment is made after 01-06-2003, interest u/s 234D becomes applicable. In favour of revenue Disallowance u/s 40(a)(i) – Payment of export sales commission and service charges to non-residents for service rendered outside India without deduction of TDS – None of the entities to whom payment has been made, PE in India - Held that:- As the articles of the DTAA entered into by India with the respective countries, the income earned is taxable only in those countries. From the above, it is, therefore, clear that no part of the said amount is taxable in India Following the decision in case of GE India Technology Centre Private Ltd. (2010 (9) TMI 7 - SUPREME COURT OF INDIA) that “the scheme of subsections (1),(2)&(3) of Sec. 195 and Sec. 197 leaves no doubt that the expression “any other sum chargeable under the provisions of the Act” would mean “sum” on which income tax is leviable. Since the amount paid by the appellant is not chargeable to tax in India, the question of deducting tax at source on the said payment does not arise. Issue decides in favour of assessee Validity of notice u/s 148 - Reopening of assessment u/s 147 – AO argued that the assessee has not disclosed all the material facts fully and truly – Assessee contended that issuance of notice u/s. 148 Act after four years is not valid – Held that:- If the assessee failed to disclose fully and truly all the material facts necessary for his assessment, the AO has jurisdiction u/s. 147 proviso to reopen the assessment even after 4 years also. Issue in favour of revenue Computing the deduction u/s 80HHC - AO has excluded the sub-contract charges for the purpose of computation – Held that:- The sub-contract charges received by the assessee were income akin to rent. Remit the matter back to his file with the direction to examine whether the sub contract charges received by the were akin to rent or not and to decide the issue de novo in accordance with law after giving opportunity to the assessee. Issue remand back to AO
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