TaxTMI 
TaxTMI 
2026 (9) TMI 868
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.... & 346/Del/2023 filed by the assessee, the Tribunal vide order dated 21.08.2026 recalled its order dated 28.02.2023 for the limited purpose of adjudicating ground nos. 3.1 and 4 of appeal in the aforesaid appeals, as while disposing of the appeals vide order dated 28.02.2023, the said two grounds remain to be adjudicated. For the sake of completeness, the relevant excerpts from the order of the Bench in the Miscellaneous Applications filed by the assessee are as under:- "2. Having regard to the fact that Ground no. 3.1 and 4 raised by the assessee not been adjudicated by the Bench while disposing of the Appeals on 28th February 2023, which is an error apparent on the face of it, the common order dated 28th Feb 2023 is recalled only....
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....hat the Tribunal in ITA No.913/Del/2023 for AY 2020-21, vide order dated 12.10.2023, has decided an identical issue, i.e. the assessee's eligibility to claim treaty benefit. The Tribunal, after examining the documents on record and facts of the case, held that the assessee is eligible for treaty benefit and hence, interest on Income Tax refund received by the assessee shall be liable to tax @10% as per provisions of the India-Ireland Double Taxation Avoidance Agreement (DTAA). 4.1. The ld. AR submits that if ground no. 3.1. is decided in favour of the assessee, the relief claimed in ground no. 4 of appeal is consequential. 5. Dr. Shalini Verma, representing the Department, fairly stated that the Tribunal in appeal of the assessee for ....
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.... case, the assessee is a tax resident of Ireland which fact has neither been disputed by the Ld. AO nor DRP. Nothing has been brought on record by the Revenue to disregard the claim of the assessee and hence in our view the assessee is rightly entitled to the beneficial rate of tax of 10% on interest as per the provisions of Article 11 of the India-Ireland DTAA. We have also perused the order of the Ld. CIT(A), Delhi - 42 for the present AY passed on 03.02.2023 in the appeal filed by the assessee before him against the intimation order of the Ld. AO passed under section 143(1) of the Act. The Ld. CIT(A) has concluded that the interest on income tax refund should be charged to tax at the beneficial rate of 10% provided under the India-Irelan....
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....ate. In the present case, it is observed that applying a different rate of taxation than what claimed by an assessee and denying the treaty benefit is not the adjustment which pertain to any arithmetical error, any incorrect claim, any disallowance of loss/ expenditure/ deduction. Accordingly, the adjustment i.e. subjecting the interest income at normal rate as against the treaty rate is not within the scope or purview of section 143(1) of the Act. 10.8 The AO is therefore, directed to verify the claim of treaty benefit made by the appellant and if the appellant is found to be eligible for treaty benefit, based on tax residency certificate etc., charge the returned FTS and interest income at the treaty rate as against the normal ra....