2018 (12) TMI 1341

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....>Income Tax<br>AKIL KURESHI & M.S. SANKLECHA, JJ. Mr. Tejveer Singh for the Appellant Mr. Atul Jasani for the Respondent &nbsp; P.C.: 1. Revenue is in the appeal against the judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 30.3.2015. Since the facts are identical, we may refer from Income Tax Appeal No. 548 of 2016. Following question was presented for our....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....S at higher rate of 20%. The issue eventually reached the Tribunal. The Tribunal, by the impugned judgment, held that there was tax liability on the payee at a lower rate as per Double Taxation Avoidance Agreement (DTAAs) and therefore, by virtue of Section 90(2) of the Act, the assessee was spared the liability to deduct tax at higher rate in terms of the provisions of Section 206AA of the Act. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ub-section (7) with the present section 206AA(7). The amendment is mitigating to a large extent, the rigors of the preexisting laws. The law, as it existed, went beyond the provisions of DTAA which in most cases mandates a 10% cap on the rate of tax applicable to the state parties. Section 206AA (prior to its amendment) resulted in a situation, where, over and above the mandated 10%, a recovery of....