2023 (7) TMI 289 - SCH - Income Tax

Rate of deduction of tax in the case of a non-resident who does not have a PAN - provisions of Section 206AA overrides the provisions of the Double Tax Avoidance Agreement or not? - DTAA between India and Netherlands - As per HC 2022 (8) TMI 40 - DELHI HIGH COURT DTAA acquires primacy in such cases, where reciprocating states mutually agree upon acceptable principles for tax treatment, the provision in Section 206AA (as it existed) has to be read down to mean that where the deductee i.e the overseas resident business concern conducts its operation from a territory, whose Government has entered into a Double Taxation Avoidance Agreement with India, the rate of taxation would be as dictated by the provisions of the treaty HELD THAT - HC's impugned order does not call for interference. The special leave petition is accordingly dismissed.

Summary

The Supreme Court dismissed the special leave petition, stating that the impugned order does not require interference. Delay was condoned, and all pending applications were disposed of.