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TMI Blog2018 (8) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue. - I.T.A. No.3917/Mum/2015 - - - Dated:- 13-8-2018 - SHRI SHAMIM YAHYA, AM AND SHRI RAVISH SOOD, JM For The Appellant : Shri M. V. Rajguru For The Respondent : Shri Arvind Sonde ORDER Per Shamim Yahya, A. M.: This appeal by the Revenue is directed against the order by the Commissioner of Income Tax (Appeals)-55, Mumbai dated 23.02.2015 and pertains to the assessment year 2008-09. 2. The grounds of appeal read as under: 1, on the facts and in the circumstrances of the case and in law, whether the Ld. CIT(A) erred in holding that the assessee was a banking company eligible to have its interest income earned on fixed deposits held with DBS Bank Mumbai taxed @ 10% u/s. 11(2)(a) of the DTAA b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Ltd. 5. In the reassessment order, the Assessing Officer held as under: 5. The assessee is a company incorporated in Singapore and used to be branch office of a Foreign Bank engaged in commercial banking activity such as retail banking, loans and bill discounting. However said operations of the branch has been wound up with effect from 12/12/2003, with approval of the RBI and hence in the instant year, no business operation has been carried out by the branch. The entire income in the instant year is the interest earned on fixed deposit with DBS Bank Ltd. Mumbai. 6. During the course of assessment proceedings, it was found that assessee has earned only interest income from fixed deposit kept in DBS Bank Mumbai after clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anking operations and branch activities in India have stated to have been wound up with effect from 12.12.2003. As such the interest income earned by assessee is required lo be taxed @ 15% as per Article 11(2) (b) as against 10%. 8. As discussed above the rate of taxation will be 15% and not 10% as shown in the return of Income. 9. In this regard the contention of the assessee that interest income earned during this period is Income from other sources is accepted and the returned income of the assessee is accepted at ₹ 3, 14, 97, 084/- provided that such interest income will be taxed @15% as per provisions of Article 11(2) (b) of the India- Singapore DTAA as discussed above. 10. Assessed accordingly u/s. 143(3) r.w.s. 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng as under: 4.3 I have considered the AO's order as well as appellant AR's submissions. Having taken note to the same, I find that the issue involved in this ground of appeal is covered in favour of the appellant's own case for A.Y.2005-06, 2006-07, 2007-08 wherein the Hon'ble DRP has categorically held that the appellant's interest income is taxable as per Article 11(2)(a) of the India-Singapore DTAA at the rate of 10%. Thus, following the rule of consistency and after taking note of the various decisions cited by the appellant's AR in its submission, I consider it proper and appropriate to hold that the appellant's interest is taxable at the rate of 10% as per Article 11(2)(a). Accordingly, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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