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2016 (3) TMI 1096 - AT - Income TaxIncome accrue or deemed to be accrued in India - Taxing corporate guarantee commission under Article 23 of DTAA between India and France - Held that:- From the record we found that guarantee commission received by France company did not accrue in India nor it can be deemed to be accrued in India, therefore, not taxable in India under Income Tax Act. Furthermore, as per Article 23.3, income can be taxed in India, only if it arises in India. In the instant case, the income clearly arises in France because the guarantee has been given by the assessee, a French company to BNP Paribas, a French Bank, in France and, therefore, Article 23.3 has no applicability as income does not arise in India. The assessee is also aggrieved for not granting credit for tax deducted at source. We direct the AO to verify the records for granting tax credit as per law.
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