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2018 (12) TMI 1341 - HC - Income TaxRequirement to furnish Permanent Account Number - Whether the Tribunal was correct in law and on facts in coming to the conclusion that Sec. 206AA does not override the provision of Sec. 90(2) of the Income Tax Act, despite the fact that Sec. 206AA starts with a non-obstance clause? - tax liability on the payee at a lower rate as per Double Taxation Avoidance Agreement (DTAAs) - Held that:- We notice that identical situation had came before the Delhi High Court in case of Danisco India Pvt Ltd Vs. Union of India & Ors [2018 (2) TMI 1289 - DELHI HIGH COURT] having regard to the position of law explained in Azadi Bachao Andolan (2003 (10) TMI 5 - SUPREME Court) and later followed in numerous decisions that a Double Taxation Avoidance Agreement acquires primacy in such cases, where reciprocating states mutually agree upon acceptable principles for tax treatment, the provision in Section 206AA (as it existed) has to be read down to mean that where the deductee i.e the overseas resident business concern conducts its operation from a territory, whose Government has entered into a Double Taxation Avoidance Agreement with India, the rate of taxation would be as dictated by the provisions of the treaty.
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