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2023 (8) TMI 159 - HC - Income TaxRectification of mistake u/s 154 - subject income being inadvertently shown under the wrong head - Taxability of income in India - income received by assessee for the services rendered to an Indian company - HELD THAT:- It is not the case of the appellant/revenue that the subject income, i.e., the income received by the respondent/assessee for the services rendered to an Indian company, i.e., HSIPL, was taxable. The benefit of Article 121 of India-USA Double Taxation Avoidance Agreement [in short, “Indo-USA DTAA”] was available to the respondent/assessee. The rectification had been ordered by the CPC with respect to two other group companies, i.e., Heidrick and Struggles Pvt. Ltd. Singapore, Heidrick and Struggles Pvt. Ltd. UK, in similar circumstance, via order dated 27.02.2020 and 30.01.2020, respectively. CBDT’s Circular No. 14/1955 dated 11.04.1955 was applicable in the instant case, which, inter alia, casts a duty on the officers of the appellant/revenue to draw the attention of the assessee towards any relief that may be available to them, which the assessee may have inadvertently omitted to claim. Having regard to the aforesaid, we are of the view that the Tribunal has taken a just view in consonance with the provisions of the Act and the aforementioned circular issued by the CBDT. Undoubtedly, the appellant/revenue can seek to levy tax only on income which falls within the ambit of the Act. Merely because the respondent/assessee placed the income under a wrong head, cannot possibly make it amendable to imposition of tax.
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