9911796707
TMI Blog2019 (11) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... tuation in the present case is, in fact, even better for the Petitioner inasmuch as the total income of the Petitioner has been assessed in the return filed by the Petitioner Assessee as NIL. In this regard, the Petitioner has placed on record the assessment orders for the Assessment Years 2013-14 to 2015-16. A perusal of the file notings as extracted hereinabove, demonstrates the position beyond doubt that there has been complete non-application of mind to the germane and relevant considerations by the Respondents while dealing with the Petitioner s application u/s 197. It appears that the earlier years assessment statements were also called for, which shows the taxable income was accepted as NIL, yet there is no discussion found in the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idance Agreement (hereinafter referred to as the DTAA ), as evidenced by the required tax residency certificate issued by the German tax authorities. 3. In terms of the Article 8 of the said DTAA, the profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 4. The Petitioner states that in compliance with the provisions of Section 195 of the Act, the Petitioner filed an electronic Form 13 application with the Respondent No. l requesting a certificate to be issued under Section 197(1) of the Act allowing a NIL rate of tax withholding to the deductors, as cargo agents on payments to be made to the Petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -204, Cargo Complex, IGI Airport, New Delhi-110037. The applicant has filed an application dated 02.05.2019 for issuance of withholding tax certificate u/s 197 of the Act, for lower deduction of tax at source for payment received from various customers, agents and distributors on account of air transportation business in India during the financial year 2019-20. The applicant company is in the business of transportation of mail, livestock or goods by air through an aircraft in international traffic and these activities are carried out at Delhi, Chennai, Mumbai, Hyderabad and Bagalore. The Company has been receiving payments from various customers, agents and distributors on account of air transportation business in India. The applicant has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) SD/- 24.05.19 9. In the light of the aforesaid, the submission of learned counsel for the Petitioner is that the present case is squarely covered by the decision of this Court in the case of Bentley Nevada LLC v. Income Tax Officer, Ward- 1(1)(2), International Taxation Anr, in WP(C) No. 7744/2019 decided on 29.07.2019 by this Court. 10. Mr. Hossain, learned counsel for the Respondent points out that in Bentley (supra), the effective rate of tax was worked out at 1.04% of the total revenues. 11. In this light, the Court quashed the order under Section 197 of the Act allowing deduction of the tax at source @ of 5% from the payments made to the Petitioner by its Indian Customers. 12. We may note that the situation in the present case is, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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