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2015 (4) TMI 1254 - AT - Income TaxApplication of Blanket Rate of Tax - computation of tax based on different rates in the assessment orders - computation of tax on royalty income - India-USA DTAA Treaty - Held that:- Hon'ble Apex Court in the case of CIT v. Vegetable Products Ltd. (1973 (1) TMI 1 - SUPREME COURT) has held that where a provision in the taxing statute is capable of two reasonable interpretations, the view favourable to the assessee is to be preferred. We are of the considered opinion that the computation of tax by the assessee in respect of royalty income is to be accepted. In this view of the matter, the grounds of appeal raised at S. Nos.2,3,4 and 5 are accordingly allowed.' Following the directions of this co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2007-08 in IBM World Trade Corpn's case (2012 (5) TMI 58 - ITAT BANGALORE ), on identical facts and issues, we hold and direct that the computation of tax submitted by the assessee in respect of royalty income is to be accepted. In this view of the matter, the grounds of appeal raised at S.Nos.2 to 8 are accordingly allowed. Levy of interest u/s.234B - Held that:- Tribunal in the assessee's own case for Assessment Year 2007-08, with which we do not find any reason to differ as it was on similar facts and issues, we hold that the assessee is not liable to be charged interest under Section 234B of the Act. Penalty u/s 271(1)(c) - Held that:- We find that since no penalty thereunder has been levied on the assessee in the impugned order of assessment for Assessment Year 2008-09, no cause of grievance arises therefrom in respect of the assessee, requiring our adjudication. In this factual matrix, this ground raised by the assessee is not maintainable
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