Reassessment and fee-for-technical-services classification: reopening upheld, but certain reimbursements and mobilization charges fell outside treaty ...
Section 80P deduction for co-operative societies remains available despite nominal members and housing society status, with limited interest income tr...
TDS credit cannot be denied where the corresponding consultancy income is accepted as not taxable in India under the applicable DTAA. On the facts recorded, the assessee had explained that it was a UAE-based foreign company, that the income was exempt from Indian tax, and that tax had been wrongly deducted; the return was processed on a nil-income basis. Once the Revenue accepted that the related income was outside Indian tax charge, disallowing credit for tax deducted on that very income was contrary to law. The assessee was therefore entitled to the TDS credit under section 119 read with Rule 37BA, and the contrary view in the intimation and first appeal was unsustainable.
TDS credit cannot be denied where the corresponding consultancy income is accepted as not taxable in India under the applicable DTAA. On the facts recorded, the assessee had explained that it was a UAE-based foreign company, that the income was exempt from Indian tax, and that tax had been wrongly deducted; the return was processed on a nil-income basis. Once the Revenue accepted that the related income was outside Indian tax charge, disallowing credit for tax deducted on that very income was contrary to law. The assessee was therefore entitled to the TDS credit under section 119 read with Rule 37BA, and the contrary view in the intimation and first appeal was unsustainable.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4819 
Join Channel 
