TMI Blog2021 (12) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... integral part of the Convention. It is well settled law that the Department cannot refuse to follow binding jurisdictional decision merely on the basis that the Department proposes to file an appeal. The Supreme Court in UOI v. Kamlakshi Finance Corpn Ltd. [ 1991 (9) TMI 72 - SUPREME COURT ] has held that order of higher appellate authorities should be followed unreservedly and mere fact that decision is not acceptable to the Revenue cannot be a ground for not following the decision of higher authority. Keeping in view the aforesaid, the impugned order and certificate are set aside and the respondent is directed to issue a certificate under Section 197 of the Act indicating therein, that the rate of tax, on dividend, as applicable q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AA provides for withholding tax @10% on dividend paid by an Indian resident to a Swiss resident entity, the Petitioner claims lower tax rate of 5% provided in India- Columbia DTAA by relying on the MFN clause in para 5 of the protocol to the India-Switzerland DTAA which was signed between India and Switzerland on 30th August, 2010 and is effective from 27th December, 2011. 4. Learned Counsel for the Petitioner submits that this issue is already settled by this Court in Steria (India) Ltd. v. CIT [2016] 386 ITR 390 (Del) and Concentrix Services Netherlands B V v/s. Income Tax Officer TDS Anr W.P.(C) 9051/2020 and by the Karnataka High Court in Apollo Tyres Ltd. v. CIT [2018] 92 taxmann.com 166 (Karnataka) holding that the protocol s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment proposes to file an appeal. The Supreme Court in UOI v. Kamlakshi Finance Corpn Ltd. AIR 1992 SC 711: (1992) 1 SCC 648 has held that order of higher appellate authorities should be followed unreservedly and mere fact that decision is not acceptable to the Revenue cannot be a ground for not following the decision of higher authority. 10. Keeping in view the aforesaid, the impugned order and certificate are set aside and the respondent is directed to issue a certificate under Section 197 of the Act indicating therein, that the rate of tax, on dividend, as applicable qua the Petitioner is 5% in IndiaW. Switzerland DTAA as held in Nestle SA (Supra) which was also under the India-Switzerland DTAA. Writ petition is disposed of in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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