2021 (12) TMI 1095

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..... ). Petitioner seeks directions to the Respondents to issue certificate with 'NIL' deduction of income tax in favour of the Petitioner for financial year 2021-22. 2. Learned counsel for the Petitioner states that the impugned order dated 27.09.2021 rejecting Petitioner's application for NIL deduction directing the customers of the Petitioner to withhold tax @ 10% is arbitrary and no reason has been given in the order for arriving at such a conclusion. She states that the Petitioner acts merely as an aggregator of educational institutions making access to various courses easier and that upon successful completion of the course, a certificate to this effect which bears the seal of the institution concerned is awarded to the student. 3. She f .....

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..... ude and shall be deemed never to have been included any income which is chargeable to tax as royalty or fees for technical services in India under this Act read with the agreement notified by the Central Government under section 90 or section 90A................" 5. Mr.Agarwal submits that after amendment of section 10(50) of the Act by Finance Act 2021 w.e.f.01-04-2021, the concept of apportionment of receipts has been introduced. Therefore, out of the total amount of receipts of the petitioner, the amount characterised as royalty or fees for technical services will be chargeable to tax under the Act read with provisions of applicable DTAA as royalty and/or fee for technical services for the purposes of TDS under section 195 of the Act. B .....

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..... s itself to be a university for the purposes of article 12(5)(c) of the DTAA between India and United States of America. The AO, in the Impugned Order holds the Petitioner is not eligible for the benefit of article 12(5) (c) of the DTAA. However, the Impugned Order does not contain any reasoning or discussion on the applicability or otherwise of various sub-articles of the DTAA to the fact situation of the case. 10. Consequently, the impugned order dated 27.09.2021 is hereby set aside with a direction to the Respondent No. 1 to pass a de novo reasoned order after taking into account the amendments made to the provisions of section 10(50) of the Act w.e.f. 01.04.2021 i.e. to exclude the receipts of the Petitioner which is subject to withhol .....

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