TMI Blog2017 (6) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... x - HELD THAT:- We direct the Assessing Officer to grant credit for TDS, Advance Tax and Self-Assessment Tax after due verification. Income accrued in India - whether the Ld. DRP was correct in holding that the entire liability was extinguished if the payment in question was made at Arm s Length? - HELD THAT:- This issue has been decided in favor of the assessee in the case of M/s. Set Satellite (Singapore) Pte. Ltd v. Dy.DIT (International Taxation) [ 2008 (8) TMI 96 - BOMBAY HIGH COURT ] wherein it was held that advertisement revenue received by resident of Singapore is not taxable in India. It was held that sales were made on principle to principle basis. Distribution revenue earned - HELD THAT:- As decided in own case [ 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ITA.No.2523/Mum/2010 dated 28.08.2015, a copy of which is placed on record. The Learned Counsel further submits that following the said order of the coordinate bench for the Assessment Year 2005 06 this issue has been decided in the Assessment Year 2007 08 in ITA.No.8748/Mum/2011 by order dated 29.02.2016 copy of the order is placed on record. 4. Learned Departmental Representative supported the orders of the authorities below. 5. We find that the issue in appeal that is the taxability of the interest received Under Section 244 of the Act has been decide in assessee s favor for the Assessment Year 2005 06 as well as 2007 08. The Coordinate Bench while disposing the appeal for the Assessment Year 2005 06 held as under:- ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 11(2) of the Treaty. 4. without prejudice to above, even assuming that interest received is taxable for the year under consideration, failed to appreciate that once taxability of the Dependent Agent FE is extinguished, interest received under Section 244A It cannot be treated as effectively connected with the alleged FE. 5. without prejudice to above, even assuming that the interest received under Section 244A is effectively connected with the Appellant's PE in India, then so much of the interest that is attributable to the alleged Dependent Agent PE should only be taxed under Article 11(4) and balance interest should be taxed under Article 11(2) of the Treaty. The Appellant craves to consider each of the above grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we allow this ground of appeal of the assessee. 7. The next issue in the appeal of the assessee is regarding not granting Credit for TDS, Advance Tax and Self-Assessment Tax. On hearing both sides we direct the Assessing Officer to grant credit for TDS, Advance Tax and Self-Assessment Tax after due verification. 8. Coming to the Revenue s appeal the first ground reads as under: - On the facts and in the circumstances of the case and in law, whether the Ld. DRP was correct in holding that the entire liability was extinguished if the payment in question was made at Arm s Length, thus deleting the addition of ₹ 110.17 Crores made by the Assessing Officer without appreciating the fact that the Revenue is in appeal on the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch decided this as under: - 11. After considering the rival contention and above facts, we find that, so far as the issue relating to addition on account of advertisement revenue and distribution revenue the same stands decided in favor of the assessee by the Tribunal, which has been affirmed by the Hon ble High Court in Assessment Year 1999-2000 and also in subsequent years. As regards the issue of distribution receipts treated as royalty income , we find that this has been treated as business income and such a finding or conclusion now have attained finality, as pointed out by the Ld. Senior Counsel. Thus, finding of the CIT(A) on both the issues are affirmed and ground no. 1 2 are dismissed . 12. Thus respectfully follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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