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2021 (1) TMI 1296 - AT - Income TaxRate of tax applicable to domestic companies and/ or co-operative banks - provisions of Article 26 (Non-discrimination) of the India-France tax treaty - HELD THAT:- On a perusal of a recent order of the Tribunal passed in the assessee‟s own case for A.Y. 2013-14 [2019 (4) TMI 2099 - ITAT MUMBAI], we find, that the Tribunal by relying on its earlier order for A.Y. 1996-97 [2013 (8) TMI 1173 - ITAT MUMBAI] had therein concluded that the tax levied at a higher rate in the case of a foreign company is not to be regarded as a violation of the non-discrimination clause. Thus we respectfully follow the aforesaid order of the Tribunal. Accordingly, the Ground of appeal No. 1 is dismissed. Data processing fees paid by Indian branch offices of the Appellant to its Singapore branch - HELD THAT:- As the facts in context of the aforesaid issue under consideration remains the same as was there before the Tribunal in the assessee‟s own case for A.Y. 2013-14 [2019 (4) TMI 2099 - ITAT MUMBAI] therefore, we respectfully follow the view therein taken. Accordingly, we herein direct the A.O to delete the impugned addition. Income chargeable to tax - Interest payable/paid by the Indian branch offices of the Appellant to the head office and its other overseas branches - HELD THAT:- The issue as to whether or not interest payable/paid by the Indian branch offices of the assessee to its head office and its other overseas branches would be chargeable to tax had been looked into by the various benches of the Tribunal in the assessee‟s own case for the aforementioned years. On a perusal of the order passed by the Tribunal in the assessee‟s own case for A.Y. 2012-13 [2019 (7) TMI 1076 - ITAT MUMBAI] the Tribunal following the order in the case of Sumitomo Mitsui Banking Corporation [2012 (4) TMI 80 - ITAT MUMBAI] and the orders of the coordinate benches of the Tribunal in the assessee's own case for the preceding years, had concluded, that the interest income received by the assessee from its Indian branch being a payment made to self was thus not taxable in the hands of the assessee Accordingly, we herein hold that the interest income received by the assessee from its Indian branch office being a payment made to self would not be taxable in the hands of the assessee. Short credit of taxes deducted at source (TDS) - HELD THAT:- As the aforesaid issue would require verification of records, we, therefore, restore the matter to the file of the A.O with a direction to verify the aforesaid claim of the assessee. In case the claim of the assessee is found to be in order then credit for the deficit amount of tax deducted at source shall be allowed by the A.O as per the extant law. Needless to say, the A.O shall in the course of the “set aside” proceedings afford an opportunity of being heard to the assessee who shall remain at a liberty substantiate his aforesaid claim. The Ground of appeal No. 6 is allowed for statistical purposes. Levying interest u/s 234A - return of income was filed by the Appellant within the prescribed due date for filing the return of income - HELD THAT:- We find that it is a matter of fact borne from the record that the assessee company had e-filed its return of income for the year under consideration i.e A.Y. 2014-15 vide e-filing acknowledgment No. 429259941291114. In the backdrop of the claim of the ld. A.R that the assessee had filed its return of income well within the prescribed time limit, therefore, no interest u/s 234A was liable to be saddled upon it, we herein restore the issue to the file of the A.O for making necessary verification. In case, the assessee is found to have filed its return of income within the stipulated time period contemplated in sub-section (1) to Sec. 139 then, no interest u/s 234A of the Act shall be imposed on it. Ground of appeal is allowed for statistical purposes.
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