9911796707
TMI Blog2013 (10) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... have been assessed as business income, there being specific Article to deal with interest income i.e. Article-11, taxation of interest will be governed by the said Article-11. Thus , it is held that tax payable @ 12.5% under Article 11(2) of FTAA is inclusive of surcharge and education cess. Decision in favor assessee. - SHRI VIJAY PAL RAO, JM SHRI N. K. BILLAIYA, AM For the Appellant : Shri S. D. Srivastava For the Respondent : Shri Farrokh Irani ORDER PER : VIJAY PAL RAO, JM This appeal by the Revenue is directed against the order dated 26.4.2012 of Commissioner of Income Tax(Appeals) for the assessment year 2009-2010. 2. The Revenue has raised the following grounds: 1. On the facts and in the circumstances of the case and in law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of DTAA has been considered and decided by this Tribunal in the case of Sunil V. Motiani Vs ITO (supra) in para 5 and 5.1 as under: 5. We have perused the records and considered the matter carefully. There is no dispute that the assessee is a non resident based in UAE. There is also no dispute that the assessee had received gross interest of ₹ 7,55,187/- from the Indian firms in which he was a partner. The interest income is no doubt taxable as the same had arisen from the sources in India. However there is Double-Taxation Avoidance Agreement (DTAA) between India and UAE and, therefore, tax has to he computed under the provisions of DTAA which is beneficial to the assessee. There are specific Articles in DTAA dealing with taxation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely and will be included in tax rate of 12.5%. The judgment of Hon ble High Court of Uttarakhand in the case of Arthusa Offshore Co. (supra), is not applicable to the facts of the present case as the Hon ble High Court was concerned with taxability of income under Article 14(2) of the DTA between India and USA. The Hon ble High Court was not concerned with interpretation of tax payable on interest income under DTAA. The judgment of AAR in the case of Airports Authority of India, IN RE (supra), is also distinguishable as in that the court was concerned with taxability of business income and it was held that under Article 5(3) of DTAA with USA, preparatory and auxiliary type of work was excluded from the purview of PE and therefore, there bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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