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2015 (7) TMI 911 - AT - Income TaxLiability to deduct tax u/s 195 - AO had levied interest u/s 201(1A) in respect of capital gain accrued to assessee on 8-6-2005 till the date on which capital gain tax was deposited i.e. 28-9-2007 - CIT(A) upheld the assessee’s contention that in view of non-discriminating clause in Article 26 of the DTAA between India and USA, the assessee was not obliged to deduct tax at source u/s 195 - Held that:- CIT(A) rightly held that in view of Article 26 of DTAA between USA and India, since no TDS is required to be made in case of sale of immovable properties within India, therefore, an assessee could not be burdened while making the payment to a non-resident for deducting tax at source. Also there was no revenue loss to department as Jasbir Singh Sarkaria had paid taxes and the assessee was entitled to the benefit of Article 26 of DTAA between USA and India. - Decided in favour of assessee.
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