9911796707
TMI Blog2012 (10) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of A.O. for deciding it in consonance with the directions contained in Tribunal order. Royalty income - applying tax rate of 15% or 10% as per section 115A - Held that:- The Tribunal has decided this issue in assessee's favour for assessment year 2007-2008 which has been concluded that the concessional rate of 10% should be applied - in favour of assessee. Charging of interest u/s 234B - Held that:- As decided in DIT (INTERNATIONAL TAXATION) Versus NGC NETWORK ASIA LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT]interest u/s 234B cannot be charged where tax is deductible at source in relation to royalty and FTS. Thus direct AO to compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal. 4. The ground no. 3 is against treating the receipts from Value Added Services (VAS) as fees for technical services u/s 9(1)(vii) and Article 13 (sic) of Indo-UK tax treaty. The learned AR candidly accepted that the Tribunal in the afore-noted order has decided this issue against the assessee. The relevant discussion is made on page 45 para 7.31 of the order. In the absence of any distinguishing feature for the current year having been brought to our notice we uphold the impugned order on this score. This ground is not allowed. 5. Ground no. 4 of the appeal is without prejudice to ground no. 3 as per which the A.O. erred in taxing the receipts from value added services at 15% on gross basis as per Article 13 instead of 10% u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r which it has been concluded that the concessional rate of 10% should be applied. The learned Departmental Representative was fair enough to concede the position in this regard. This ground is, therefore, allowed. 7. The ground no. 6 is against charging of interest u/s 234B. We find that this ground is covered by the judgment of the Hon'ble jurisdictional High Court in the case of DIT (International Taxation) v. NGC Network Asia LLC [2009] 313 ITR 187 (Bom.) holding that interest u/s 234B cannot be charged where tax is deductible at source in relation to royalty and FTS. The Tribunal in assessee's own case for the immediately preceding year has directed the Assessing Officer to compute interest u/s 234B, if any, after reducing the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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