TMI Blog2011 (2) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 520/Mum/2010 (Arising out of ITA No. 7574 & 7349/Mum/2004) - - - Dated:- 11-2-2011 - P. M. Jagtap (Accountant Member) And Asha Vijayaraghavan(Judicial Member) For the Applicant : S. E. Dastur, Niraj Sheth For the Department : Sumit Kumar ORDER Asha Vijayaraghavan(Judicial Member) By this M.A dated 520/Mumbai/2010, the Petitioner submits as follows: In all the departmental appeals the grounds were as under: a) Whether the application of Article 24 of the Treaty (Limitation of Relief) article, GCC was to be denied the benefit of the Treaty? b) Whether payment to GCC was in the nature of Royalty? c) Whether the CIT(A) erred in holding that the Royalty did not arise in India having regard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication by the assessee. That the first ground of appeal of the Department is to be held as dismissed and a clear decision that Treaty benefit is available to GCC particularly as the AO has himself applied the Treaty in some of the orders subsequent to the order passed under Section 201 of the Act. 2. After considering the argument of both the sides and perusing the material on record, we find that an error apparent on record has crept into the order of the Tribunal dated 25th June, 2010. We, therefore, rectify the same by deleting para 21 of the said order and substituting the same with the following: 21. Article 24 of the India-Singapore Treaty reads as follows: Limitation of Relief 1. Where this Agreement provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia in this case) which under the laws in force in the other Contracting State (Singapore in this case) is subject to tax by reference to the amount thereof which is remitted to Singapore 21.3 As explained earlier in this order the income in the instant case, even if it is construed as Royalty, do not arise in India under Article 12(7) because the payer (SET Singapore) is a resident of Singapore. Paragraph 26 of the OECD Commentary to Article 11 states: This paragraph lays down the principle that the state of source of the royalties is the state of which the payer of royalties is resident . In this case, the state of source of royalties is Singapore as the payer is a resident of Singapore. The royalties are not therefore income from s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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