9911796707
TMI Blog2011 (11) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... herlands Double Taxation Avoidance Agreement. Briefly stated the facts of this ground are that the assessee declared income tax refund of Rs. 3,94,33,643 as income under Article 11 and offered it for taxation at the rate of 10%. In the reassessment proceedings u/s.147, the Assessing Officer opined that the interest on income-tax refund was liable to be considered as business profits under Article 7 and hence chargeable to tax at the rate of 41%. The learned Dispute Resolution Panel accepted the view point taken by the Assessing Officer on this point. 3. We have heard the rival submissions and perused the relevant material on record. It is observed that the issue raised in this ground has been decided by the Special Bench of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income tax is chargeable for every assessment year in respect of the total income of the previous year of an assessee according to the rates prescribed in the relevant Finance Act. The assessee formally known as Satellite Television Asian Region Advertising Sales BV is a company incorporated in the Netherlands. The assessment was completed under scrutiny in September 2006 for income of Rs. 3,96,49,696/- as follows: Income from Advertisement Rs. 2,16,053 Income from other sources Rs. 3,94,33,643 Total income Rs. 3,96,49,696 Tax was levied @ 40% on Rs. 2,16,053/- and 10% on Rs. 3,94,33,643/-. On verification, it was revealed that the advertisement income not offered by the assessee was brought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issue. The assessee replied vide its letter dated 07.11.2005, a copy of which is available on page 3 and 4 of the paper book, by stating that the interest on income tax refund amounting to Rs. 3.94 crore was taxable under Article 11 of the treaty. The Assessing Officer in the order passed u/s 143(3) on 20.09.2006 accepted the taxability of interest on income-tax refund under Article 11 at the reduced rate. Thereafter notice u/s 148 was issued on the reasons set out above. It is observed that all the relevant details concerning the falling of interest on income-tax refund under Article 11 were duly placed before the Assessing Officer, who after due application of mind accepted the assessee's contention in the order passed by him u/s 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being any fresh material coming to his notice after the passing of assessment order. Obviously the present case is a change of opinion by the Assessing Officer on the same set of facts which were there at the time of completing the original assessment. This course of action is impermissible in the light of the judgment of Kelvinator of India Ltd. (supra). We, therefore, hold that the initiation of reassessment proceedings in this case is not valid. Ground No.1 is, therefore, allowed. 7. The ld. AR stated that if the other grounds are decided in assessee's favour, then ground no.2 against the holding of Star India Pvt. Ltd. as permanent establishment of the assessee in India be not decided, as having become academic. In view of our decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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