2017 (8) TMI 1591

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..... ran (AM) :- The appeal filed by the assessee is directed against the order dated 19.3.2015 passed by the learned CIT(A)-55, Mumbai and it relates to A.Y. 2007-08. The assessee is aggrieved by the decision of the learned CIT(A) in upholding the revision order passed by the Assessing Officer u/s. 154 of the Act, wherein the Assessing Officer has held that interest granted to the assessee u/s. 244A .....

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..... ted by the Income Tax Department is taxable under Article 22 of DTAA and hence tax should have been deducted at higher rate of 41.82% as against lower rate deducted as per provisions of Article 11 of DTAA. Accordingly, he passed a rectification order u/s. 154 of the Act and raised a demand of Rs. 24,25,676/-. The learned CIT(A) also confirmed the same and hence the assessee has filed this appeal b .....

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..... ord. We noticed that the Special Bench has held in the case of Clough Engineering Ltd. (supra) that interest on income tax refund is taxable under Article 11 of the DTAA. The Revenue has originally deducted TDS on the interest granted u/s. 244A of the Act at the rate prescribed under Article 11 of DTAA, which is correct as per the decision rendered by the Special bench. Further the Coordinate Benc .....

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