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2021 (3) TMI 591 - AT - Income TaxTDS u/s 195 - Scope of the term 'Interest' as per clause 4 of the DTDA article between India and Germany - monitoring fees - HELD THAT:- Monitoring fees paid by the assssee to DEG Bank, Germany qualified as ‘interest’ both under Income-tax Act, 1961 as well as the Double Taxation Avoidance Agreement between India & Germany and the payment made in question was not liable to Income tax under the Act in terms of the specific exemption granted under Article 11(3)(b) of the indo-German DTAA. Hence, no deduction of tax at source was required to be made u/s. 195 of the Act. As there was no violation of Sec. 195 of the Act, the disallowance made u/s. 40(a)(ia) of the Act was deleted by the Ld. CIT(A). We find no infirmity in this finding of the ld. CIT(A). Loss on “Interest Rate Hedging Contract” - HELD THAT:- this issue is covered in favour of the assessee by the decision of the coordinate bench of this Kolkata Tribunal, ‘B‘ Bench in the case of M/s. Mcleod Russel India Ltd. Vs. DCIT [2019 (5) TMI 541 - ITAT KOLKATA]. As the ld. CIT(A) has applied the proposition of law laid down by this Tribunal on this issue , we find no infirmity in the order of the Ld. CIT(A).
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