TaxTMI 
TaxTMI 
2011 (5) TMI 588
X X X X Extracts X X X X
X X X X Extracts X X X X
....ne Crore placed with M/s. Matulya Mills Ltd. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the amount of Rs. 15,11,295 will not be included in the total income of the assessee being tax paid in USA on behalf of the assessee on the income accrued to the assessee and further erred in directing to delete the same." 3. When the case was taken up for hearing, none appeared on behalf of the assessee, even though notices were sent periodically to the assessee. The Ld.DR was heard who placed on record the order in the assessee own case for assessment year 1999-2000. 4. Gr. No. 1 pertains to the addition of interest of Rs. 17,50,000 on deposit of Rs. One crore, placed by the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and the ground is accordingly dismissed. 5. Gr. No. 2 The issue is in relation to deletion of Rs. 15,11,295. As seen from the order of the Assessing Officer, the assessee company received interest from M/s. Sunbell, USA wherefrom Rs. 15,11,295 has been deducted from the assessee while remitting the amount. The assessee was issued a show cause notice dated 13-11-2002 requiring to explain why this amount could not be added. The assessee has offered an explanation vide letter dated 20-11-2002, the contents of which are neither extracted nor placed on record. Be that as it may, the Assessing Officer added the amount of Rs. 15,11,295 by virtue of provisions of section 4(a)(sic) of the I.T. Act. The Ld. CIT(A) however mention that this amount b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Bombay High Court has held that dividends received from companies in United Kingdom by shareholders outside the United Kingdom could be taxed only on net basis and not on gross basis. The Court held that tax deducted at source on dividends in United Kingdom not includible in the total income of the assessee. As pointed out by the Ld. Commissioner of Income-tax, the above decision was arrived at by the Hon'ble Bombay High Court in the light of the basic scheme under the laws of the United Kingdom. As observed by the Hon'ble High Court, the basic scheme under the laws of the United Kingdom appears to be that it is the company which is liable to pay corporation tax on the distributions declared by it. It can recoup this tax from the divid....