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2013 (11) TMI 932 - AT - Income TaxDeduction u/s 80M - Discrimination with foreign bank - DTAA with France - Held that:- Assessee cannot claim a deduction under section 80M without fulfilling the conditions as required under the said section. Assessee before us admittedly does not fulfill the conditions prescribed under section 80M and therefore, cannot claim deduction under section 80M - Since there is only one direct decision given by a Coordinate Bench interpreting the non discrimination clause in the case of foreign Bank in the case of Credit Llyonnais (2004 (2) TMI 279 - ITAT BOMBAY-J) and as there is no other contradictory decision under the same DTAA, we are of the view that the Coordinate Bench decision has to be followed. Even when there is a diversion of views by the different Benches on same issue, then the decision which laid down the principles more elaborately and logically after considering the latest statutory provisions as applicable has to be followed - reduction of tax rate way back in 1976 itself is after withdrawing the deduction under section 80M specifically to the foreign companies and further allowance of deduction as contested by assessee would result in a reverse discrimination of the Indian company vis-à-vis tax rate of foreign company, in our view does not come under the definition of non discrimination. We are not convinced with the contention of assessee with reference to the reduction rate under section 80M - no reason to constitute a Special Bench on this issue when there is no other contradictory order analyzing the Indo-French DTAA particularly invoking non- discrimination clause while taxing dividends under section 115A at a reduced rate - Decided against assessee.
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