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2024 (2) TMI 386 - AT - Income TaxTP Adjustment - benchmarking the royalty payment - TPO is directed to include Technical Know-how fee and exclude software expenses and other expenses while benchmarking the royalty payment - HELD THAT:- Similar issue came for consideration before this Tribunal in assessee’s own case in for the assessment year 2015-16 & 2016-17 [2024 (2) TMI 290 - ITAT BANGALORE] as held that no separate benchmarking of royalty payment is required if the TNMM approach has been adopted at entity level and this issue is decided in favour of the assessee. Taxability of dividends - Dividend Distribution Tax (DDT) - dividend is declared, distributed or paid by a domestic company to a non-resident shareholder(s) - whether CIT(A) has erred in not appreciating that under India Japan DTAA, the dividends are taxable at the rate of 10% and such rate is also applicable for discharge of DDT? - Appellant submits that DDT paid in excess of 10% is liable to be refunded - HELD THAT:- This issue came for consideration before Special Bench in the case of Total Oil India Pvt. Ltd. [2023 (4) TMI 988 - ITAT MUMBAI (SB)] wherein it answered the following question in favour of the revenue as held where dividend is declared, distributed or paid by a domestic company to a non-resident shareholder(s), which attracts Additional Income Tax (Tax on Distributed Profits) referred to in Sec. 115-O of the Act, such additional income tax payable by the domestic company shall be at the rate mentioned in Section 115- O of the Act and not at the rate of tax applicable to the non-resident shareholder(s) as specified in the relevant DTAA with reference to such dividend income. Nevertheless, we are conscious of the sovereign's prerogative to extend the treaty protection to domestic companies paying dividend distribution tax through the mechanism of DTAAs. Thus, wherever the Contracting States to a tax treaty intend to extend the treaty protection to the domestic company paying dividend distribution tax, only then, the domestic company can claim benefit of the DTAA, if any. Decided against assessee. Levy of interest u/s 234B & 234C of the Act, which is consequential and mandatory in nature and to be calculated accordingly.
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