2013 (11) TMI 283

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....s appeal is filed by the revenue against the order passed by the Income Tax Appellate Tribunal in I.T.A. No.327/Coch/2001 dated 6.4.2004. The appeal is with reference to the assessment year 1999 - 2000, in which the assessee claimed exemption from deducting tax at source in respect of membership fee contribution of U.S. $ 10,000 equivalent to Rs.3,95,855/-. The Assessing Officer called upon the as....

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.... facts and in the circumstances of the case and also on an interpretation of Section 9 of the Income Tax Act read with the relevant agreement the Tribunal is right in law and fact in holding - i) the assessee in any case cannot be taxed in India as it is not an agent of IPI;        ii) "Section 195 (1) does not have any impact because the assessee is not a respo....

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....aid questions of law arises for consideration in the above appeal as the first appellate authority as well as the Tribunal has correctly considered the scope and effect of deducting tax at source in respect of the provisions relied upon by the Assessing Officer. In Annexure B order, the first appellate authority found that since IPI is a non-resident body and has no permanent establishment in Indi....

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....PI had no permanent establishment in India and the assessee is not an agent of IPI. The assessee is only a member of IPI and by giving advertisement membership fee or other donation the assessee is not getting any monetary advantage. The only benefit available to the assessee is the right to participate and to strive for achieving the objects of IPI through publications, seminars, conferences etc.....