Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 670 - AT - Income TaxTaxability of advertisement revenue & subscription revenue - Tax Treaty between India and USA - Article 27 of Treaty relating to Mutual Agreement Procedure (‘MAP') - rate of tax @10% or 20% - Interest u/s 234B where entire income is subject to TDS u/s 195 - Held that:- The issue has been decided in favour of the assessee by the CIT(A) for AY 2004-05 wherein it was observed that, the Appellant has a PE in India, both Advertisement and Subscription revenues constitute business income of the Appellant in India and that 10% of the Advertisement and Subscription revenues be treated as taxable income of the appellant in India CIT(A) was right in granting relief for the assessee and in holding that to ensure the consistency of assessment over the years, by following the basis of taxability of the advertisement and subscription revenue constitute business income of the assessee in India and 10% of the advertisement and subscription revenue itself to be treated as taxable income of the assessee in India. - Decided against the revenue. Interest u/s 234B - Following the decision of Jurisdictional High Court of Delhi in the case of Jacabs Civil Incorporated [2010 (8) TMI 37 - DELHI HIGH COURT] and the decision of ITAT “C” Bench Delhi in the case of G.E. Energy Parts Inc. [2014 (7) TMI 683 - ITAT DELHI], we are inclined to hold that the CIT(A) was right in holding that the interest u/s 234B of the Act is not leviable in the case of the assessee being nonresident when its entire income is subject to TDS u/s 195 of the Act. Hence, we are unable to see any valid reason to interfere with the conclusion of the CIT(A) on this issue and we uphold the same. Accordingly, ground no. 2 in both the appeals of the revenue being devoid of merits is also dismissed. - Decided against the revenue.
|