DTAA treaty relief claims can be examined on merits even if not expressly made in the return

A genuine claim for India-Singapore DTAA relief need not be rejected merely because it was not specifically made in the return, where the assessee disclosed non-resident status and produced the Singapore Tax Residency Certificate and treaty documents. The factual conditions for Article 11 and Article 13 relief required verification of residence status and supporting evidence. The matter was therefore not foreclosed on the rectification route and was sent back for fresh examination on merits, with the assessee to be given an opportunity to furnish further material.

---

---

Issues: Whether the assessee was entitled, in rectification proceedings, to claim relief under the India-Singapore DTAA in respect of interest income and short-term capital gains, and whether the matter required verification on merits.

Analysis: The assessee had disclosed non-resident status and had produced the Singapore Tax Residency Certificate and the treaty documents. The record before the Assessing Officer in connected proceedings also contained material relevant to the assessee's residence status. In the circumstances, a genuine claim for treaty benefit could not be rejected merely because it had not been specifically claimed in the return. The question whether the assessee satisfied the factual conditions for Article 11 and Article 13 relief required examination of the treaty position and the supporting evidence. The proper course was to verify the claim on merits rather than to foreclose it solely on the basis of the rectification route.

Conclusion: The assessee's claim was not finally rejected and the matter was sent back for fresh examination by the Assessing Officer on merits, after giving opportunity to furnish supporting material.

---