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2012 (10) TMI 133 - AT - Income TaxIndia UAE DTAA - interest income - at the rate of 12.5% under DTAA OR 40% as per ITA - Held that:- Assessee in this case is a UAE resident. The DTAA with the UAE mandates that interest income be taxed @ 12.5% under Article 11(2)(b) of the said DTAA. Also Board Circular No. 728 F.No. 500/12/95-FTD) dated 30.10.1995 which states that any remittance to a country with which a DTAA is in force, tax should be deducted at the rates provided in the Finance Act of the relevant year or at the rates provided in the DTAA, whichever is more beneficial to the assessee - in favour of the assessee. Short term capital gains - Held that:- As the benefit of Indo-UAE Treaty is available with the assessee and short term capital gains derived by him from sale of shares/securities in India were not taxable in India terms of Article 13(3) of the Indo-UAE Tax Treaty - in favour of the assessee. Annual Letting Value(ALV) of the property - claim of deduction of amount paid to cooperative society - Held that:- Assessee has claimed a sum of Rs. 22,888/- was paid by it towards common maintenance of the building including the provision of lift, cleaning of common areas etc. provided by the assessee to the occupants of the flat. Thus, it is the assessee's argument that while determining the rent receipt by it from the tenant, the amount of Rs. 22,888/- should have been excluded from the gross amount of the rent received by the assessee since it was only reimbursement of the utility charges paid by the assessee to the society on behalf of the tenant for the services enjoyed by the tenant. Thus the view adopted by the CIT (A) is cogent one to allow the deduction of Rs. 22,888/- while computing the netted ALV of the house - in favour of the assessee.
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