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2023 (6) TMI 1346 - AT - Income TaxDisallowance u/s. 14A r.w.r 8D(2)(iii) - shares are held as stock-in-trade - HELD THAT:- As in light of various decisions rendered after considering the judgment rendered in the case of Maxopp Investment Ltd [2018 (3) TMI 805 - SUPREME COURT] deleting disallowance u/s. 14A where shares are held as stock-in-trade, we are of considered view that disallowance u/s. 14A of the Act is unsustainable in the instant case. Thus, the assessee succeeds on ground No.1 of the appeal. Income taxable in India - Disallowing exclusion of profits of overseas branches - assessee claimed benefit of Double Taxation Avoidance Agreement (DTAA) entered into with the nations, where the branches of the assessee are located - HELD THAT:- As decided in Tecnimont Pvt. Ltd. [2020 (3) TMI 676 - ITAT MUMBAI] notification deals with connotations of the expression “may be taxed”, appearing in the tax treaties entered into by India, and there is absolutely no basis whatsoever to support the proposition that the effect of the notification has to be restricted in its application to non-business income only. No such differentiation in treatment of business and non-business income is envisaged in the said notification, nor to do we see any justification for inferring the same. Learned counsel does not have any material whatsoever in support of the proposition canvassed by him, nor does this proposition make any sense on the first principles- inasmuch as once the notification is issued without any such specific restriction for application to business income, we cannot infer a restriction in its application. We, therefore, reject the plea of the assessee, and thus decline to interfere in the matter. We uphold the action of the Assessing Officer in including the profits of the assessee’s overseas branches in its taxable income in India. Decided against assessee.
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