Treaty rate cannot support refund of excess dividend distribution tax absent contrary authority under the India-Singapore DTAA.

A resident company's claim for refund of excess dividend distribution tax was examined with reference to section 115-O and Article 10(2) of the India-Singapore DTAA read with section 90(2) of the Income-tax Act. The Tribunal noted that the issue had already been decided against the assessee by a Special Bench decision relied on by the first appellate authority, and no contrary material was produced. The refund claim was therefore not accepted, and the challenge failed.

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Issues: Whether the assessee was entitled to refund of excess dividend distribution tax on the basis of Article 10(2) of the India-Singapore Double Taxation Avoidance Agreement read with section 90(2) of the Income-tax Act, 1961.

Analysis: The claim for refund of excess DDT was examined in the context of dividend distribution tax paid under section 115-O of the Income-tax Act, 1961 and the assessee's reliance on the treaty rate under Article 10(2). The issue had already been decided against the assessee by the Special Bench decision relied upon by the first appellate authority, and no contrary material was brought before the Tribunal.

Conclusion: The claim for refund of excess dividend distribution tax was not accepted and the assessee's challenge failed.

Ratio Decidendi: A resident company is not entitled to claim refund of excess dividend distribution tax by invoking the treaty rate under the India-Singapore DTAA and section 90(2) where the issue has already been decided against such claim and no contrary authority is shown.

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