9911796707
TMI Blog2024 (6) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... d No. 3: Denial of benefit under the Double Taxation Avoidance Agreement ('DTAA') between India-UAE ('treaty') with respect to income earned by the Appellant in India 3.1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in denying the benefits of the DTAA between India and UAE with respect to capital gains and interest income earned by the Appellant during the impugned year. 3.2 While doing so, the Ld. CIT (A) erred in: a) Disregarding the fact that the Appellant is a 'Government within the meaning of Article 24(2) of the DTAA between India and UAE and therefore, eligible for treaty benefits in respect of its entire income earned in India under Article 24(1) of the said treaty; b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal gain 2,90,65,91,616 The return of income was processed by the Assistant Director of Income Tax Centralized Processing Centre (CPC) (hereinafter referred to as 'Ld AO, CPC), Income Tax, Department, Bengaluru, and a intimation under section 143(1) of the Act was issued on 31 March 2021, wherein the Ld AO had made addition to the total income and raised tax demand of Rs 1,46,14,53,649/- (including interest). In response to the aforesaid intimation, the Appellant had filed a request with CPC on the income tax portal to reprocess the return of income on 29 April 2021. On reprocessing the return, CPC issued a rectification order dated 24 May 2021 under section 154 of the Act. In the said rectification order the Ld AO has erroneously sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, in the other Contracting State in respect of any income derived by such Government from that other Contracting State.] 2 For the purposes of paragraph (1) of this Article, the term "Government"- (a) in the case of India, means the Government of India, and shall include: (i) the political sub-divisions, the local authorities, the local administrations, and the local Governments, (ii) the Reserve Bank of India, (iii) any such institution or body as may be agreed from time to time between the two Contracting State. (b) in the case of UAE means the Government of United Arab Emirates, and shall include; (i) the political sub-divisions, the local authorities, the local administrations, and the local Governments, (ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company which is mentioned in the Article 24(2)(b) of the India-UAE DTAA. The AR has also not explained the profile as well as business activities of the appellant company The contact No. 9999999999 has been mentioned in ITR as well as Form No. 35. The contact No. prima facie appeared to be wrong. From search carried out in 'True caller' it was noticed that mobile no. 9999999999 is in the name of Raj Esh Rk J' and it was reflected as "Likely fraud" having 6884 spam reports. Further it is not explained that how the income earned by the appellant company in India is the income earned by the Government of UAE or the institutions mentioned therein it seriously raised doubt about the appellant company being the company name o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter may be restored to the file of CIT (A) to examine the tax residency certificate an applicability of Article 24. 6. After going through the order of ld. CIT (A) and the material referred to before us, we find that ld.CIT(A) has denied the benefit of Article 24 disbelieving the assessee is not Abu Dhabi Investment Authority as mentioned in Article 24(2)(b)(ii) on a very flimsy ground. The reason given by him is that mobile number was mentioned "9999999999" which he tried to find it from True Caller that it is a fraud number and therefore the Abu Dhabi Investment Authority is a fraud company rather it is not company belonging to Abu Dhabi Government. Once, all the other details have been provided, and if that is doubted, then, he s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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