TaxTMI 
TaxTMI 
2022 (7) TMI 1147
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....he assessment year 2017-18. 2. As the issues and facts involved in the instant appeals are exactly similar, therefore, for the sake of brevity, we are deciding ITAno. 5662/Del/2017 as a lead case and the result of the same shall be applicable mutatis mutandis to the connected appeal i.e. ITA no. 5663/Del/2017 as well. 3. Brief facts, relevant for adjudication of the appeal, are that the Assessee had entered into an agreement with M/s. GSI Engine B.V., {a tax resident of Netherland, having its head office at Netherland} qua an aircraft engine having serial No. 779201 takenfor the purpose of Assessee's own flight operation on a lease rent of US$ 65000 per month and user charges. 3.1 The Assessee had filed an application u/s. 195 of the Act....
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.... that it is a settled position that liability to deduct tax under section 195 arises only when the "sum" being paid is chargeable to tax under the Income Tax Act and since in the present case, there is no sum chargeable to tax under the provisions of the Act in view of Article 7 & 12 of the Avoidance of Double Taxation Treaty between India and Netherland, there is no requirement to withhold tax on such remittance. 5. The Revenue, being aggrieved with the findings and determination of the ld. Commissioner, is in appeal before us.In support of its case, the ld. DR relied upon the order passed by the Assessing Officer u/s. 195 of the Act and submitted that the impugned order is perverse and improper and hence, liable to be set aside. 5.1 On ....
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.... Pvt. Ltd. vs. UOI, we are of the considered view that ld. CIT (A) has erred in holding that in this case, provisions contained u/s 206AA overrides beneficial provisions of DTAA between India and Neitherland. Consequently, assessee has rightly deducted the tax @ 10% as per provisions contained under DTAA as section 206AA cannot have overriding effect on DTAA, hence no demand is payable by the assessee. Hence, question framed is decided in favour of the assessee. So, additions made by the AO and confirmed by the ld. CIT (A) to the tune of Rs.73,00,719.77, Rs.80,82,662.74 & Rs.57,05,582.11 for second quarter, third quarter and fourth quarter of FY 2012-13 respectively is ordered to be deleted. Consequently, all the appeals filed by the assess....