| 2016-TII-INSTANT-ALL-298 | 10 March 2016 |
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CASE LAWS KRISHAK BHARATI COOPERATIVE LTD Vs ACIT: DELHI ITAT (Date: March 9, 2016) Income tax - Sections 90 & 263 - India Oman DTAA - Article 25(4). Keywords - dividend income - exemption - revisional jurisdiction - tax credit & undistributed share of profit. Whether when the AO has taken a plausible view after thorough application of mind, the Principal CIT cannot substitute his view by assuming jurisdiction u/s 263 - YES: ITAT Whether the Principal CIT has any jurisdiction to issue directions with regard to any issue on which no show cause notice u/s 263 was issued - NO: ITAT Whether the PCIT is justified in directing the AO to withdraw tax credit granted to an assessee under Article 25(4) of the India Oman DTAA in respect of dividend income received from its joint venture entity established in Oman, merely on ground that such dividend was exempted under Oman Tax Laws - NO: ITAT Whether the undistributed share of profit reflected in the books of PE can be said to partake the character of income under the provisions of the Income-tax Act - NO: ITAT Assessee's appeal allowed RHEINBRAUN ENGINEERING UND WASSER GMBH Vs DDIT: MUMBAI ITAT (Dated: March 4, 2016) Income Tax - Section 44D & 115A, Indo-German DTAA - Article 7, 12. Keywords - consultancy services - FTS - PE - stay of employees. Whether for computing continuous stay for purpose of PE, only actual stay of employees has to be considered and not the entire contract period - YES: ITAT Whether when assessee had rendered services that were of consultancy nature, the payments received by the assessee should be assessed as per the provisions of Article 12 and not as per Article 7 of the Indo-German DTAA - YES: ITAT Whether the payments received by the assessee from the Indian parties under the agreement, have to be taxed @10% and that the provisions of section 115A would not be applicable - YES: ITAT Assessee's appeal allowed |
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