TaxTMI 
TaxTMI 
2026 (1) TMI 539
X X X X Extracts X X X X
X X X X Extracts X X X X
....,296/- to the assessee after deducting tax under section 195 of the Act. Assessee claimed the income as exempt and claimed refund of the tax deducted by the ZBL. The case was selected for scrutiny under CASS and statutory notices under section 143(2) and 142(1) of the Act were issued and served on the assessee. After verification of the submissions made by the assessee, the Ld. AO observed that as per Form 26AS assessee has claimed a TDS amount of Rs. 86,26,842/-. Thereafter, a questionnaire under section 142(1) of the Act was issued and served on the assessee to provide the period of stay in India and the assessee in response submitted that he has stayed in India less than sixty (60) days during the impugned assessment year and further submitted the Tax Residency Certificate [in short "TRC"] issued by Dubai Tax Authorities. Further, he also submitted the residential documents claiming that he is a citizen of Singapore. Ld. AO noticed that assessee was being paid salary by Zerodha Group of Companies upto 30.09.2020 and from 01.10.2020 the assessee was engaged as a consultant with ZBL. Ld. AO further observed that nature of services provided by the assessee as an employee on salary ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e with the provisions of sub-section (3) of Section 144C for the reason of the Dispute Resolution Panel outrightly rejecting the objections filed by the Appellant by treating it as invalid, thus the matter ceasing to fall within the scope of sub-section(5) of Section 144C of the Act. 4. That the impugned Assessment Order has violated the principles of natural justice since in the grave circumstances of the Appellant, neither the requests nor the submissions made by the Appellant during the assessment proceedings were considered nor was the Appellant granted an opportunity of being heard. 5. That the impugned Assessment Order is erroneous for failing to appreciate that the services rendered by the Appellant were covered within the scope of Article14 of the India-UAE Double Taxation Avoidance Agreement and accordingly the same could not have been brought to tax in India in the absence of any fixed base in India or the Appellant staying in India for more than 183 days during the relevant previous year. 6. That the impugned Assessment Order has flawed determination of the Appellant earning business income from a payee in India, being Zerodha Broking Limited, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he absence of provisions as a reason for failing to condone the delay overlooked the implied powers which subsection (7) to Section 144C of the Act grants, without demarcating any timeline thereof." 5. The issues emanating out of the above grounds is as follows: - i. Validity of the final assessment order passed beyond the limitation period as specified under section 153 of the Act. ii. Denial of the benefit of the provisions of DTAA as per Article 14. iii. Invoking the provisions of Significant Economic Presence as per Explanation to section 2(A)(a) to section 9(1)((i) of the Act. 6. Ld. Authorised Representative [hereinafter "Ld.AR"] submitted that since the objections filed by the assessee before DRP treating them as invalid, the assessment order ought to have passed on or before 31.05.2024 in accordance of provisions of sub-section 3 of section 144C of the Act. He therefore submitted that the assessment order passed by the Ld. AO on 10.12.2024 is beyond the period of limitation and hence void ab initio. 7. Further, he also submitted that as per the provisions of section 90(2) of the Act assessee being an NRI having and being a tax resident in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n India, whether the beneficial provisions under section 90(2) of the Act can be invoked for availing the benefit of India-UAE DTAA. We extract below the Explanation 2A(a) to section 9(1)(i) of the Act. "Income deemed to accrue or arise in India. 9.(1) The following incomes shall be deemed to accrue or arise in India:- (i) all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India. Explanation 1.-For the purposes of this clause- (a) in the case of a business of which all the operations are not carried out in India, the income of the business deemed under this clause to accrue or arise in India shall be only such part of the income as is reasonably attributable to the operations carried out in India ; ........ Explanation 2A.-For the removal of doubts, it is hereby clarified that the significant economic presence of a non-resident in India shall constitute "business connection" in India and "significant econo....