Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 546 - HC - Income TaxRectification u/s 154 - refund of taxes paid in foreign country - rectification of returns and refund of taxes as paid under protest by invoking Section 154 - HELD THAT:- As per circular dated 17.11.1971, an assessee is entitled to seek rectification pursuant to interpretation of law by the Hon'ble Apex Court. Further, as rightly contended by the learned Senior Counsel for the petitioner in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED [2021 (3) TMI 138 - SUPREME COURT] as held determination of the AAR in Citrix Systems (AAR) [2012 (2) TMI 258 - AUTHORITY FOR ADVANCE RULINGS] does not state the law correctly and is thus set aside and any ruling on the more expansive language contained in the explanations to Section 9(1)(vi) of the Income Tax Act would have to be ignored if it is wider and less beneficial to the assessee than the definition contained in the DTAA, as per section 90(2) of the Income Tax Act read with explanation 4 thereof, and Article 3(2) of the DTAA. Further, the expression "copyright" has to be understood in the context of the statute which deals with it, it being accepted that municipal laws which apply in the Contracting States must be applied unless there is any repugnancy to the terms of the DTAA. Thus held taxes paid by the petitioner under protest deserves to be refunded by rectifying the income tax returns filed by the petitioner pursuant to the order of Advance Rulings Authority. Respondent no. 1 clearly fell in error in passing the impugned order rejecting the applications filed by the petitioner and consequently, the impugned order deserves to be set-aside and the rectification applications deserves to be allowed by directing refund of taxes paid by the petitioner. Rectification application allowed.
|