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2020 (1) TMI 66 - AT - Income TaxValidity of Assessment u/s 144C(1) - whether the draft assessment order forwarded to the assessee left unsigned - HELD THAT:- Draft assessment order does not carry the force of a final assessment order which results in an enforceable demand against the assessee. Thus, in strict sense of the term, the draft assessment order cannot be treated as assessment order passed under section 143(3) r/w section 144C(3) or section 144C(13) of the Act. Therefore, the non–signing of the draft assessment order forwarded to the assessee would not invalidate the final assessment order passed under section 143(3) r/w section 144C(13) of the Act. In any case of the matter, the report of the Assessing Officer furnished before learned DRP clearly states that the office copies of the draft assessment order has been duly stamped and signed. Therefore, non– signing of the draft assessment order forwarded to the assessee would not be that fatal to invalidate the final assessment order. The decisions relied upon by the leaned Sr. Counsel are clearly distinguishable on facts In the facts of the present case, there is no dispute that the final assessment order has been duly signed and stamped by the Assessing Officer. That being the case, there cannot be any issue regarding the validity of the final assessment order. - Decided against assessee Income accrued in India - subscription revenue received by the assessee to be in the nature of royalty and bringing it to tax in India - Article–13(6) of the India–UK Tax Treaty - HELD THAT:- While deciding the dispute relating to nature of subscription charges received by the assessee in assessee’s own case for the assessment years 2008–09 and 2009–10, the Tribunal in the decision reported [2014 (7) TMI 899 - ITAT MUMBAI] has held that the amount received by the assessee is in the nature of royalty as per Article–13(3) of the Tax Treaty. The same view was reiterated by the Tribunal wile deciding identical issue in assessee’s own case for the assessment year 2012–13 in DCIT v/s Reuters Transaction Services Ltd [2018 (8) TMI 1129 - ITAT MUMBAI] . Therefore, in our considered opinion, the issue whether the amount received by the assessee from the customers in India is in the nature of royalty stands covered against the assessee by the aforesaid decisions of the Co–ordinate Bench. That being the case, we concur with the view expressed by the Revenue authorities that the amount received by the assessee from the customers in India is in the nature of royalty as per Aricle–13(3) of the India–UK Tax Treaty as well as the provisions of the Act. Alternative claim made by the assessee that only the royalty income attributable to the PE can be brought to tax in India as per the provisions of section 115A r/w section 44DA of the Act r/w Article 13(6) of the India–UK Tax Treaty - When the issue has been decided by the Tribunal against the assessee in the preceding assessment years more than once and no difference in facts obtaining in the impugned assessment year has been brought to our notice by the assessee. Adhering to the norms of judicial discipline, we respectfully follow the decision of the Tribunal on the issue, as referred to above, and hold that the assessee cannot take the benefit of Article–13(6) of India–UK Tax Treaty. These grounds are dismissed.
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