TMI Blog2012 (1) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... icable. However, there is no need to go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee. It has to be granted the benefit of the Act under which no liability to tax can be fastened on the assessee. This decision was further confirmed by Hon'ble Delhi High Court in the case of DIT INTERNATIONAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f telecommunication satellites located in outer space and was engaged in active business of transmitting telecommunication signals to/from its customers, viz., T.V. channels, NICNET and Internet Service Providers (ISPs) for various purposes including telecommunication, broadcasting and transfer of image/voice data, etc. The Assessing Officer has treated the receipts of the assessee company as royalty as per the provisions of Section 9(1)(vi), 9(1) (vii) of the Act and applied Article 12(7) (b) of the tax treaty and held that such payments are taxable. He computed the receipts of the assessee from Indian customers at Rs. 34,98,16,199/- and the said amount has been taxed at 10% and the tax has been computed at Rs. 3,49,81,619/-. The revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,287,228 Global Customers (Attribution @ 5%) 372,652,401 18,632,620 1,863,262 Total income 510,283,300 51,028,330 4. The assessment so made was challenged before the CIT (A) who has decided the appeal filed by the assessee by the impugned order dated 29th July, 2011. Learned CIT (A) has got confirmation from the Assessing Officer of the fact that whether facts for the present year are similar to the facts for Assessment Year 2006-07 and Assessing Officer vide letter dated 11th June, 2011 addressed to CIT (A) has confirmed the facts of the present year are similar to the facts for Assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of fact on record that the assessee is a tax resident of USA and, therefore, the provisions contained in the DTAA are applicable. However, we are of the view that we need not go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee. The assessee is found to have incurred no liability to tax under the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
