2021 (11) TMI 1087

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....respect to interest income, commitment fees and agency income. On this regard, submission of the assessee is as follows:- 2. In Ground Nos. 1 to 8 of the appeal the Appellant had challenged the finding relating to existence of its permanent establishment in India and consequent assessment of interest income, commitment fees and agency fees received by it in respect of amounts lent to Indian borrowers as business income. The Tribunal has rightly held that the aforesaid streams of income shall be charged to tax at the rate of 10% in accordance with Article 11 of the Double Taxation Avoidance Agreement between India and Germany (the DTAA). 3. In this context, in paragraph 2 at page 1, paragraph 6 at page 8, paragraph 29 at pa....

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....accordingly. The impugned order dated 4th December 2020 stands rectified accordingly. 5. The second mistake pointed out to us is that ground nos. 9 and 10 remained indisposed off. The submissions of the assessee on this point are as follows:- 3. In Ground Nos. 9 and 10 of the Appeal, it has been claimed that credit may be allowed in respect of tax deducted at source (TDS), including for such items where it could not furnish the TDS certificates, but, the income was received net of taxes. It is further claimed that raising of demands without allowing such credit for the TDS was not in consonance with section 205 of the Income-tax Act, 1961 (the Act). Though the Tribunal has reproduced the said grounds of appeal in paragraph 3 at ....

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....ctor of tax has deposited the tax into the Government account. In this regard, reliance is also placed upon the following judgments where it has been held that assessee's placed in a similar position as the Appellant cannot be regarded as "assessee in default" and the amount to the extent of TDS cannot be recovered from them: Yashpal Sahni v. ACIT [2007] 293 ITR 539 (Bom HC); Devarsh Pravinbhai Patel v. ACIT [R/Special Civil Application No. 12965 & 12966 of 2018; Sumit Devendra Rajani v. ACIT (2014] 49 taxmann.com 31 (Guj.); and ACIT v. Om Prakash Gattani [2000] 242 IT 638 (Gauhati). 6. Learned Departmental Representative fairly agrees that the above grounds have remained to be disposed of, but, as....