https://www.taxtmi.com/caselaws?id=20885 Renewal of a matured deposit under the governing terms, where a fresh application and acceptance are required, is treated as a new contract rather than a mere continuation of the earlier deposit. On that construction, the renewed amount is a loan or debt "first created" after the India-U.K. Double Taxation Avoidance Convention came into force, so article 12(2) applies and the concessional tax rate is available. Because the assessment proceeded on that basis, it was not erroneous or prejudicial on the Commissioner's view, and revision under section 263 was unwarranted. en-us Tue, 26 Nov 1991 00:00:00 +0530 Tue, 17 Nov 2009 17:39:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20885 Renewal of a matured deposit under the governing terms, where a fresh application and acceptance are required, is treated as a new contract rather than a mere continuation of the earlier deposit. On that construction, the renewed amount is a loan or debt "first created" after the India-U.K. Double Taxation Avoidance Convention came into force, so article 12(2) applies and the concessional tax rate is available. Because the assessment proceeded on that basis, it was not erroneous or prejudicial on the Commissioner's view, and revision under section 263 was unwarranted. Case-Laws Income Tax Tue, 26 Nov 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20885