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2020 (8) TMI 476 - HC - Income TaxDouble Taxation - Payment of Normal Tax (advance Tax / TDS) considering the assessee has Multiple permanent establishments in India - Seeking stay of payment of equalization levy /s 165A read with Section 166A of the Finance Act, 2016 as amended by Finance Act, 2020 during the pendency of the present writ petition - applicant’s case before this Court is that it is not liable to tax in India as its core business is carried outside India and none of the activities which are carried out in India result in the existence of either a permanent establishment (“PE”) or the payment received by it can be characterized as Royalty. HELD THAT:- Levy has been introduced w.e.f. 01st April, 2020 by amendment of the Finance Act, 2016 vide the Finance Act, 2020 and is being levied on the entities that do not have a PE in India. Since it is the applicant’s case that it does not have a PE in India, it would be liable to pay tax under the new levy. However, according to the applicant, any further payment would result in double taxation. Revenue submitted that, it has no desire or authority of collecting the EL from the Applicant in respect of the income on which income tax has been paid by the Applicant either as advance tax or as TDS made by its customer banks in India during the pendency of this writ petition. - This Court is of the view that the respondent no.3 can have no objection to being held bound by its own averments in the reply/counter affidavit.
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