2013 (11) TMI 1682 - AT - Income Tax

Eligible for the benefit of DTAA between India and UAE - Held that - CIT(A) erred by confirming the order of the assessing officer when the assessee has submitted the copy of the certificate from the Min. of Finance and Industry of UAE to the effect that the assessee is qualified in terms of the DTAA between India and UAE as resident in the United Arab Emirates to enjoy the benefit of the said agreement, for the fiscal year 1997-98, pursuant to the provisions of Article 8 of the DTAA. In view of the above discussions, we set aside the impugned order of the learned CIT(A) and direct the assessing officer to give relief / benefit of DTAA with UAE

Summary

Issues:
Appeal against the order of Ld. CIT(A)-11, Mumbai regarding eligibility for DTAA benefit between India and UAE for A.Y. 2008-09.

Analysis:
The Revenue appealed against the Ld. CIT(A)'s decision directing the AO to treat the assessee as eligible for the DTAA benefit between India and UAE for A.Y. 2008-09. Both parties acknowledged that the issue was in favor of the assessee based on a previous Tribunal decision for A.Y. 1999-2000. The Tribunal's order in the assessee's own case for A.Y. 1999-2000 was referenced, where it was held that the assessing officer erred in not granting the DTAA benefit to the assessee, who provided a certificate from the Ministry of Finance and Industry of UAE confirming eligibility under the DTAA. The Tribunal directed the assessing officer to provide the DTAA benefit to the assessee for A.Y. 2008-09.

The Tribunal reviewed the lower authorities' orders and reiterated the decision in the assessee's favor based on the previous Tribunal ruling. The Tribunal emphasized that the facts and circumstances were identical to the previous case, and as no new material was presented to challenge the Tribunal's decision, the Ld. CIT(A)'s order was set aside, and the assessing officer was directed to grant the DTAA benefit to the assessee. The Tribunal dismissed the Revenue's appeal, citing the lack of new facts and the agreement between both parties that the issue was conclusively settled by the Tribunal's previous decision.

In conclusion, the Tribunal upheld the assessee's eligibility for the DTAA benefit between India and UAE for A.Y. 2008-09 based on the certificate provided by the Ministry of Finance and Industry of UAE. The Tribunal's decision was consistent with the previous ruling in the assessee's favor for A.Y. 1999-2000, and the Revenue's appeal was dismissed due to the absence of new evidence challenging the Tribunal's decision.