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Rectification of Tribunal's order regarding the application of Article 7 of the Indian Mauritius DTAA and the taxability of the assessee's income in India. Analysis: The assessee filed a rectification application seeking correction of the Tribunal's order, which erroneously held that the provisions of Article 7 of the Indian Mauritius DTAA were not applicable to the case. The lower authorities had already determined that Article 7 applied to the facts of the case. The AO and CIT(A) had concluded that the assessee's income was taxable in India due to the existence of a Permanent Establishment (PE) in India. The Tribunal erred in disregarding the uncontested findings of the lower authorities and reaching a different conclusion. The Tribunal should have focused on whether the assessee had a PE in India and whether the income could be taxed on a gross basis under section 44B, despite the applicability of Article 7. The Tribunal wrongly declined to adjudicate on the taxability of the assessee's income under Article 7 after concluding that Article 8 was inapplicable. The Tribunal's observation that Article 4, 5, and 7 of the DTAA were irrelevant was incorrect, as it was essential to determine the taxability of the income under Article 7. The Tribunal's decision to tax the income under the Indian IT Act without considering the application of Article 7 was a mistake. The Tribunal was required to assess whether the income fell under Article 7 and if it could be taxed on a gross basis under section 44B, as determined by the lower authorities. In light of the above, the Tribunal decided to recall its previous order to reevaluate whether the assessee's income, even under Article 7 of the India Mauritius DTAA, was taxable in India and on what basis. The Tribunal aimed to address the grounds raised by the assessee in their appeal. Consequently, the miscellaneous application for rectification was allowed, and the Tribunal was directed to reconsider the taxability of the assessee's income under Article 7. This detailed analysis highlights the errors in the Tribunal's original order, the significance of applying the relevant DTAA articles, and the need for a proper assessment of the taxability of the assessee's income in India.
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