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2018 (12) TMI 690 - AT - Income TaxNon-constitution of Permanent Establishment ('PE') of the Appellant in India - invoking provisions of section 115A - No attribution of income deemed to accrue / arise in India possible to the alleged PE of the Appellant in India - Indo-German Treaty - Held that:- We find that the issue in the present appeal is squarely covered by different orders of Tribunal and the Tribunal has decided the issue in favour of assessee [2017 (12) TMI 1337 - ITAT PUNE] in turn, relying on earlier decisions and have held that there is no merit in invoking provisions of section 115A in respect of interest and 115A r.w.s. 44DA in respect of support / royalty services; the receipts are to be taxed in the hands of assessee under Indo-German Treaty @ 10%. Assessability of royalty income and interest is decided in favour of assessee. Additions made on account of reimbursement of expenses - plea of assessee is that once the expenses were reimbursed by its Indian subsidiary, then the same cannot be added as its income - Held that:-We find that the issue raised by assessee is purely legal in nature and the same is admitted for adjudication. The assessee has also pleaded that the evidence in this regard could not be furnished before the Assessing Officer but the same is being filed before the Tribunal by way of additional evidence. Admitting the same, we direct the AO to verify the copies of invoices in this regard and adjudicate the issue in turn, giving reasonable opportunity of hearing to the assessee. The assessee is in any case, is entitled to claim the credit for TDS against the aforesaid receipts and we direct the Assessing Officer to allow the same in accordance with law after verifying the claim of assessee.
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