https://www.taxtmi.com/caselaws?id=450039 ITAT Chennai ruled on multiple tax issues. On TDS non-deduction for commission payments, the tribunal directed the AO to re-examine the MFN clause in Indo-Belgium DTAA Protocol against Article 12 provisions and decide afresh. For section 14A disallowance, the tribunal upheld that only investments yielding exempt income during the relevant year should be considered for average value computation, following Delhi Special Bench precedent. The tribunal confirmed that section 14A disallowance cannot be added to book profits under section 115JB. Regarding investment promotion subsidy, the tribunal held it constitutes capital receipt based on SC precedent in Ponni Sugars case, noting the subsidy's connection to Tamil Nadu's industrial policy and the assessee's substantial investment exceeding Rs. 300 crores. en-us Wed, 20 Dec 2023 00:00:00 +0530 Sat, 24 Feb 2024 09:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450039 ITAT Chennai ruled on multiple tax issues. On TDS non-deduction for commission payments, the tribunal directed the AO to re-examine the MFN clause in Indo-Belgium DTAA Protocol against Article 12 provisions and decide afresh. For section 14A disallowance, the tribunal upheld that only investments yielding exempt income during the relevant year should be considered for average value computation, following Delhi Special Bench precedent. The tribunal confirmed that section 14A disallowance cannot be added to book profits under section 115JB. Regarding investment promotion subsidy, the tribunal held it constitutes capital receipt based on SC precedent in Ponni Sugars case, noting the subsidy's connection to Tamil Nadu's industrial policy and the assessee's substantial investment exceeding Rs. 300 crores. Case-Laws Income Tax Wed, 20 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450039