Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Assessee company paid Dividend Distribution Tax (DDT) on dividends distributed to its holding company, a tax resident of Mauritius, at higher rates under the Income Tax Act instead of lower rate of 5% prescribed under the India-Mauritius DTAA. Assessee claimed refund of excess DDT, alleging wrongful denial of treaty benefit. Following the Special Bench decision in Total Oil case, it was held that dividend declared by a domestic company to a non-resident should be taxed at the rate given u/s 115-O, and not the beneficial rates under DTAA, unless the contracting state extends treaty protection to the domestic company. No such protection was shown in the instant case. Hence, treaty benefit was not available in relation to Section 115-O, and assessee's appeals were dismissed.
Assessee company paid Dividend Distribution Tax (DDT) on dividends distributed to its holding company, a tax resident of Mauritius, at higher rates under the Income Tax Act instead of lower rate of 5% prescribed under the India-Mauritius DTAA. Assessee claimed refund of excess DDT, alleging wrongful denial of treaty benefit. Following the Special Bench decision in Total Oil case, it was held that dividend declared by a domestic company to a non-resident should be taxed at the rate given u/s 115-O, and not the beneficial rates under DTAA, unless the contracting state extends treaty protection to the domestic company. No such protection was shown in the instant case. Hence, treaty benefit was not available in relation to Section 115-O, and assessee's appeals were dismissed.
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TaxTMI 
TaxTMI 
of 4915 
