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2017 (1) TMI 1819 - AT - Income TaxIncome taxable in India - income on account of providing corporate guarantee - India and France DTAA - assessee is non-resident company, having two subsidiaries, in India - HELD THAT:- The Tribunal in order [2016 (3) TMI 1096 - ITAT MUMBAI] found that guarantee commission, received by France Company neither accrued in India nor deemed to be accrued in India, therefore, not taxable in India under the Income Tax Act. Furthermore, as per Article-23.3, income can be taxed in India only if arises in India and since, in the instant case, the income arose in France, as the guarantee was given by the assessee, a French company to BNP Paribas, a French Bank, in France, therefore, Article-23.3 has no applicability as income arose out of India. Respectfully, following the decisions of the Tribunal, these grounds of the assessee are allowed.
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