TMI Blog2014 (9) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... tuents/investors on the transaction in government Treasury bills undertaken through the bank, the bank was not obliged to deduct the tax at source - The income is not liable to tax and, therefore, tax deduction at source on such income was not permissible and in the given facts and circumstances – Decided against Revenue. - Income Tax Appeal No. 341 of 2012, Income Tax Appeal No. 342 of 2012 - - - Dated:- 21-8-2014 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : Mr. Arvind Pinto For the Respondent : Ms. A. Vissanji with Mr. S. J. Mehta ORDER P. C. 1] This appeal challenges the order passed by the Commissioner and by the Tribunal. 2] The concurrent findings in the peculiar facts are that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside. 5] Ms. Vissanji appearing on behalf of the assessee would submit that none of the questions and which have been formulated by the revenue can be termed as substantial question of law. Firstly, she relies upon the Double Taxation Avoidance Agreement and clarifies that the ICICI bank namely the assessee has contracted with the UAE resident to a limited extent of allowing him to open an account in India with the assessee, depositing the monies in the account of the account holder and which is the income derived from sale of securities by the account holder in India. Secondly, the capital gains that the account holder derives are not liable to tax in UAE, therefore, the same income generated in India cannot be subjected to tax. Mores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with their letter dated 14th June, 2005, 12 C.A. Certificates together with a letter dated 19th May, 2005 and 6 similar certificates with another letter dated 15th June, 2005. The Assessing Officer found that most of the beneficiary of the remittances were residents of UAE. The Chartered Accountant certified that the capital gain had arisen to the concerned persons on account of sale proceeds of government securities and the said gain so arisen is exempt under Article 13 of Double Taxation Avoidance Agreement between India and UAE. Hence, no tax was liable to be deducted at source. 7] This factual position has not been accepted by the Assessing Officer and he refused to permit the respondents to rely on the treaty or the clauses thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X
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