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2020 (1) TMI 612 - AT - Income TaxRate of tax to be charged on the interest on refund u/s. 244A - India-USA DTAA - CIT(A) held that scope of the definition of ‘interest” as per Article 11(4) of India – USA DTAA does not cover interest granted u/s. 244A and held that asset on which the interest income accrued viz TDS is not a debt claim or government bond or security - HELD THAT:- We restore this issue to the file of the Assessing Officer to adopt the tax rate as specified in India–USA DTAA in the light of the decision of the Hon’ble Special Bench in the case of ACIT v. Clough Engineering Ltd (2011 (5) TMI 562 - ITAT, DELHI) and the decision of the Hon'ble Jurisdictional High Court in the case of the DIT(IT) v. Credit Agricole Indosuez [2015 (6) TMI 974 - BOMBAY HIGH COURT] Charging of interest u/s.234B - HELD THAT:- It is not in dispute that for the relevant assessment year i.e. A.Y. 2012-13 as per the provisions of the section 209 of the Act advance tax was not payable by the assessee being a non-resident company. We find that the Hon'ble Jurisdictional High Court in the case of the DIT (IT) v. NGC Network Asia LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT] held that when a duty is cast on payer to deduct and pay tax at source, on payer’s failure to do so interest u/s. 234B cannot be imposed on payee assessee - We direct the Assessing Officer to delete the interest levied u/s. 234B of the Act. Gain arising from roleover of foreign exchange contracts is assessable as capital gains/losses - See assessee own case [2019 (7) TMI 1560 - ITAT MUMBAI]
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