2016 (9) TMI 799

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....e 10 & 24 of the DTAA. 3. Short facts of the case are that the assessee is engaged in the business of manufacturing of detergent bar and powder to be supplied to Hindustan Lever Ltd. It has manufacturing units at Dhule and two units at Baddi. Deduction u/s 80IC of the Act has been claimed at Rs. 30,18,400/- in respect of Unit-1 at Baddi as per return filed declaring income of Rs. 2,69,85,362/- earned from turnover of Rs. 50,16,20,874/- during the year under consideration. Revised return declaring income of Rs. 2,65,23,504/- has been filed. In the ITNS-150 the Assessing Officer did not give relief of Rs. 28,54,425/- under ADT of the taxes deducted by the foreign subsidiary of the assessee company on taxable income received. Felt aggrieved....

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....lankan subsidiary in Srilankan Rupees is 1,20,05,202/- on which 10% of the tax has been deducted in Srilankan Rupees Rs. 10,91,382/- which is equivalent to Indian Rs. 4,76,498/-. The appellant is thus allowed credit for taxes paid in Srilanka as per Article 24 of DTAA to the extent of Rs. 4,76,498/-. In this regard I drew strength from the following judgments :- The Supreme Court in the case of Union of India vs. Azadi Bachao Andolan (2003) ITR 706 (SC) held as under :- "No provision of Double Taxation Avoidance Agreement can possibly fastened a tax liability where the liability is not imposed by the Act. If a tax liability is imposed by the Act, the agreement may be resorted to for negativing or reducing it; and in case of differe....

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....er the Act in view of the provisions of section 90(2). Section 90(2) makes it clear that "WHERE THE Central Govt. has entered into an agreement with the Government of any country outside India for granting relief of tax or for avoidance of double taxation then in relation to the assessee to whom suchb agreement applied, the provisions of the Act shall apply to the extent they are more beneficial to the assessee", meaning thereby that the Act gets modified in regard to the assessee in so far as the agreement is concerned if it falls within the category stated therein. In the case of Ms. Pooja Bhat vs. DCIT (2009) 123 ITJ (Mum) 4-4. This case relates to a cine artist who performed show in Canada and received remuneration Rs. 186000 and tax....