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| The Tax Publishers2023 TaxPub(DT) 146 (Del-HC) INCOME TAX ACT, 1961
Sections 148A(d) & 148
India-US DTAA - Article 12
Where AO held that assessee was not entitled to benefits of India-US DTAA, but assessee proved that it had no escaped income and filed Tax Residency Certificate on the time i.e. prior to order passed under section 148A(d) and consequential notice under section 148, hence eligible to get the benefits of India-US DTAA the order and the notice afore said were set aside and AO was directed to pass fresh order under section 148A(d).
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Reassessment - Notice issued under section 148 - Validity -- Order passed under section 148A(d) - Income deemed to accrue or arise in India (Royalty/FTS)
Assessee filed writ petition challenging the order under section 148A(d) and the consequential notice under section 148, wherein, assessee stated that it provided licensed material and ancillary services and the receipts from these transactions does not qualify either as royalty or technical services fees in terms of Article 12 of the India-US DTAA and, therefore, there was no income escaped assessment. In the order under section 148A(d) it was stated that assessee was not entitled to the benefits of India-US DTAA since it did not furnish Tax Residency Certificate. Assessee stated that the certificate was duly furnished prior to order passed under section 148A(d). It further stated that AO without considered submission passed order under section 148A(d). Held: Assessee argued that order was not correct. After considering the submission. Court stated granted liberty to assessee to file fresh replies with AO and AO was directed to deal with the assessee's contentions and submissions and pass fresh orders under section 148A(d). Therefore, Order under section 148A(d) and consequential notice under section 148 were set aside.
Followed:Engineering Analysis Centre of Excellence (P.) Ltd. v. CIT(2021) 432 ITR 471 (SC) : 2021 TaxPub(DT) 1208 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2016-17, 2017-18
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