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2018 (4) TMI 1936 - AT - Income TaxBenefit of treaty - recipients satisfied conditions of the treaty and can be treated as resident of respective countries as per the DTAA - whether the learned CIT(A) was justified in holding that section 206AA of the Income Tax Act, 1961 do not override the provisions of Double Taxation Avoidance Agreement entered into by the Government of India under section 90? - HELD THAT:- We find that, in the case of DDIT Vs Serum Institute of India Pvt. Ltd. [2015 (6) TMI 26 - ITAT PUNE] section 206AA of the Act does not override the provisions of section 90(2) of the Act and that in the impugned cases of payments made to non-residents, assessee correctly applied the rate of tax prescribed under the DTAAs and not as per section 206AA of the Act because the provisions of the DTAAs was more beneficial. Thus, we hereby affirm the ultimate conclusion of the CIT(A) in deleting the tax demand relatable to difference between 20% and the actual tax rate on which tax was deducted by the assessee in terms of the relevant DTAAs. As a consequence, Revenue fails in its appeals. The views so expressed by the coordinate bench now stand approved by Hon’ble Delhi High Court’s judgment in the case of Dansico India Pvt. Ltd. [2018 (2) TMI 1289 - DELHI HIGH COURT] No judicial precedent to the contrary has been brought to our notice. In this view of the matter, and respectfully following the binding judicial precedents, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter.
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