TMI Blog2004 (7) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, the provisions of the agreement would prevail over the Act in view of the provisions of section 90(2) - The substantial question of law raised by the appellant is therefore liable to be answered against the Revenue - - - - - Dated:- 13-7-2004 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J. - Heard. The appeal is preferred against the order of the Income-tax Appellate Tribunal, Madras Bench "C", dated July 3, 2003 in I.T.A. No. 364 of 1995. The following substantial questions of law are raised for consideration: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the technical and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axation Avoidance Agreement between India and Malaysia, the technical service fees received were not taxable in India. It was also pointed out that the Income-tax Appellate Tribunal had decided the issue in the assessee's favour for the immediately preceding assessment year. The Commissioner of Income-tax (Appeals) accordingly allowed the appeal. Aggrieved by the order of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Income-tax Appellate Tribunal, Chennai Bench. The Tribunal, following the decision of the Madras High Court in the case of CIT v. VR. S.R.M. Firm [1994] 208 ITR 400, wherein the issue has been decided in favour of the assessee, dismissed the Revenue's appeal. Hence the present appeal by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any country outside India for granting relief of tax, or for avoidance of double taxation, then in relation to the assessee to whom such agreement applies, the provisions of the Act shall apply to the extent they are more beneficial to that assessee', meaning thereby that the Act gets modified in regard to the assessee in so far as the agreement is concerned if it falls within the category stated therein. When it is intended under the Double Taxation Avoidance Agreement between India and Malaysia that, even though it is possible for a resident in India to be taxed in terms of sections 4 and 5 of the Income-tax Act, 1961, if he is deemed to be a resident of contracting State where his personal and economic relations are closer, then his ..... X X X X Extracts X X X X X X X X Extracts X X X X
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