2023 (2) TMI 1333 - HC - Income Tax

Applicability of provision of DTAA overriding against to provisions of section 206AA - HELD THAT - Appeal by the Revenue challenging the order passed by the ITAT C Bench, Bangalore Income Tax Appellate Tribunal, Bengaluru Bench, has been admitted to consider the following question of law - 1. Whether, on the facts and in the circumstances of the case, orders passed by CIT(A) and Tribunal are perverse in nature as both the appellate authorities failed to observe that section 206AA starts with a non-obstante clause therefore it overrides all other provisions of the Act including section 90(2), 115A and 139A and as such provisions of DTAA will not over ride provisions of the I.T.Act? 2. Whether on the facts and in the circumstances of the case, the Tribunal and CIT(A) are right in holding that provisions of DTAA will override provisions of the Act when the same is against to provisions of section 206AA of the Act? As submitted that the issue involved in this appeal is covered by the decision of this Court in the case of M/s. Wipro Ltd. 2023 (1) TMI 173 - KARNATAKA HIGH COURT The said submission is not disputed by Shri. M. Dilip for the appellants, in his usual fairness. Decided in favour of assessee.

Summary

The Karnataka High Court dismissed the Revenue's appeal challenging an ITAT order, stating that the provisions of DTAA will override provisions of the Act when against section 206AA. The decision was based on a previous case involving Wipro Ltd. No costs were awarded.