2014 (9) TMI 95

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....r. Pinto appearing on behalf of the revenue would submit that the appeal raises substantial question of law and as formulated in the memo of appeal. He submits that the Double Taxation Avoidance Agreement is not a facilitating arrangement and merely because the capital gains are not subjected to tax in the State or in the country to which the constituent or account holder belongs namely UAE in this case, does not mean that the source of the income would not be liable to be taxed under Indian Law. Therefore, account holder or constituent having earned the income from the sale of securities in India, that income has not been remitted from India to UAE that the bank was liable to deduct the tax at source. 4] The Assessing Officer according to....

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....same assessee by the Division Bench of this Court and equally Ms. Vissanjee relies on the notification which has been issued by the Government under Section 90 of the Income Tax Act, 1961 on 18th November, 1993 and further Notification dated 28th November, 2007. She also relies upon the judgment of the Hon'ble Supreme Court in the case of Union of India and Another V/s. Azadi Bachao Andolan and another reported in 263 ITR 706. She submits that the view taken by the Tribunal and the Commissioner of Income Tax (Appeals) is in conformity and in consonance with the factual materials and the principles of law which have been laid down in the Hon'ble Supreme Court decision. Such a view cannot be said to be perverse or vitiated by an error....

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....ls) and the Tribunal and both of which firstly relied upon the decision of the Hon'ble Supreme Court in Azadi Bachao Andolan (Supra) there was also in the field a decision or order of the Tribunal in the case of Assistant Director of Income Tax v/s. Green Emirates Shipping and Travels. Incidentally, Mr. Pinto was unable to point out as to whether the view taken in Green Emirates has been questioned by the revenue any further. Apart therefrom, what we find is that on these admitted facts, the Tribunal came to a conclusion that there is no tax liability on the income by way of gains from sale proceeds of government securities in India in UAE. If the gains accrued to the residents of UAE and that was not subject to or liable to any tax in ....