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2014 (1) TMI 127 - AT - Income TaxInterest liability under section 36(1)(iii) – Held that:- Following assessee's own case for A.Y. 2005-06 - The assessee has placed on record copy of the CC A/c and demonstrated that debit balance was not on account of purchase of the assets - The assessee has a substantial profit which was deposited in this very account - The assessee has declared income which suggest that it has excess interest free funds, then the investment made in the acquisition of the assets - Proviso to section 36(1)(iii) is not applicable on the facts of the present case. Non-deduction of tax out of the payment – Held that:- Following assessee's own case for A.Y. 2005-06 – As per article 15 of DTAA between India and Italy - Income derived by a resident of a contracting state in respect of professional services or other independent activities of a similar character may be taxed in that State - Such income may also be taxed in India but subject to fulfillment of conditions of clauses (a) and (b) of Article 15 - Mr. Andrea Bonotto is entitled for the beneficial provisions of the DTAA - He is covered by Article 15 of the DTAA - The income would not be taxable in his hand in India and, therefore, no TDS would be deductible – Decided against Revenue.
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