2009 (2) TMI 65 - HC - Income Tax

Tribunal by relying on its earlier order, uphold the Dy. CIT (A) order that the relief under the agreement for the avoidance of double taxation of income was available to the assessee and the assessee s income was not taxable under the IT Act, 1961, in India - relief granted by the appellate authority is based on fresh assessment order and is in compliance with directions of the Tribunal made in order for earlier assessment year - Decided in favor of the assessee

Summary

Issues:
Interpretation of relief under the agreement for avoidance of double taxation of income.

Analysis:
The High Court addressed the issue of whether the Income-tax Appellate Tribunal was correct in upholding the Deputy Commissioner of Income-tax (Appeals) order granting relief to the assessee under the agreement for the avoidance of double taxation of income. The Tribunal referred to an earlier order directing the Assessing Officer to provide the benefit of the agreement between the Government of India and the Government of the U.K. The Tribunal confirmed the order of the Deputy Commissioner of Income-tax (Appeals) based on this direction. The appellate authority granted relief to the assessee after verifying the claim made by the assessee for the Assessment Year 1984-85. The High Court found that there was no legal infirmity in the impugned order of the Tribunal as it was based on the fresh assessment order by the Assessing Officer, following the Tribunal's earlier directions. The Court concluded in favor of the assessee and against the Revenue, disposing of the reference with no costs.