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2023 (7) TMI 136 - HC - Income TaxTDS u/s 195 - demand u/s 201(1) and interest u/s 201(1A) - taxability of the freight income earned by the principal relatable to transportation of cargo and goods - Denial of exemption under Article 8 of DTAA between India and Germany - It is petitioner’s case that consistently the Income Tax Appellate Tribunal (ITAT) as well as High Courts have held that this income was not taxable under the DTAA HELD THAT:- Having considered GE India Technology Cen. (P.) Ltd. [2010 (9) TMI 7 - SUPREME COURT] the law is very clear in as much as the payer is bound to deduct tax only if the tax is exigible in India. If the tax is not exigible, there is no question of tax at source being deducted. This has been the position that has been followed and accepted by the Department since Assessment Year 2005-2006 until Assessment Year 2018-2019. We do not find anything contrary even in the impugned order. Moreover, the relationship between petitioner and the principal has also been accepted right from AY 2005-2006 until Assessment Year 2018-2019 that petitioner was only remitting to the principal the money that belonged to the principal. Even in the affidavit in reply, the only stand taken is the pendency of the appeal. Decided in favour of assessee.
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