2013 (10) TMI 1518

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....n deleting the levy of Surcharge and Cess without appreciating the fact that levy of Surcharge and Cess is a mandatory simple mechanical and compulsorily levy in all the tax paying cases. 2. The appellant prays that the order of the Ld. CIT(A) on the above ground be set aside and that of the Assessing Officer restored." 3. The assessee is a tax resident of Singapore and claim benefit under DTAA between India and Singapore in the return of income. The assessee offered interest income to the tax as 15% as per the provisions of Article 11(2)(b) of DTAA between India and Singapore. The AO, while processing the assessment u/s 143(1) levied Surcharge and education cess on the interest income. The assessee challenged the action of the ....

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....tion of income under different heads. The business profit is governed by Articie-7 whereas interest income by Article-Il. Under para-7 of Article-7 where business profit includes items of income which are dealt with separately in any other Article of the agreement, provisions of those Articles should not be affected by the provisions of this Article. In other words, in case there is provision for dealing with a particular type of income, such type of income has to be dealt with by those provisions. Therefore, though interest income may have been assessed as business income, there being specific Article to deal with interest income i.e. Article-11, taxation of interest will be governed by the said Article-11. Secondly interest income may be ....