2023 (6) TMI 394

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.... has taken the following grounds of appeals:- "1. The order passed by Ld CIT(A) is against law, equity and natural justice. 2. The Ld CIT(A) has erred in law and on facts by upholding the order of Ld CPC to levy tax at maximum marginal rate instead of applicable rate as per DTAA on interest income. 3. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal." 3. The brief facts of the case are that the assessee is a U.S. citizen and a Non-Resident Indian (NRI). The assessee e-filed his return of income on 02.08.2016 declaring total income of Rs. 1,10,30,613/- (comprising of interest amounting to Rs. 41,18,783/- which was offered to tax at the special rate of 15% under the India - US....

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....ngly, in absence of TRC, the Ld. CIT(Appeals) held that the assessee is not entitled to avail the benefit of the concessional rate of tax as provided in the India - USA Tax Treaty. While dismissing the appeal of the assessee the Ld. CIT(Appeals) made the following observations:- "5.6 In my considered opinion mere holding of US Passport (which makes him a US citizen) and being NR in India and do not necessarily establish that he has tax residency of USA as is required u/s 90 for availing the benefit of the beneficial provisions of the DTAA. The Ld AR has not brought to attention any case laws to the effect that the TRC would not be required in the case of a US Passport holder. Even the copy of return of income in USA has been submitted. It....