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TMI Blog2021 (9) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... evalent in Section 115A with regard to rates of taxes in case of non-resident tax payer, in respect of income by way of royalty and piece for technical services as provided under Section 115A, was increased by way of amendment from 10% to 25%. Thus, from perusal of the aforesaid explanatory notes, it is evident that different rates of taxes in respect of royalty and piece for technical services were provided under different agreements. Therefore, the Tribunal has rightly taken the view that for the purposes of computing tax payable on the royalty income received, it has to be taxed with reference to the provisions of the agreement. Decided in favour of the assessee - ITA No. 63/2019 - - - Dated:- 22-4-2021 - Hon'ble Mr. Justice Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA.No.278/2012 reads as under; 2. This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act , for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment Year 2007-08. The appeal was admitted by a Bench of this Court vide order dated 19.02.2013 to consider the following substantial questions of law: 1. Whether the Tribunal was correct in holding that the assessee is entitled to adopt provisions of Section 115A(1)(b)(AA) of the Act for computing the tax payable on royalty income received in pursuance of agreement entered into on or after 01.06.2005 and provisions of Article 12 of the Indo-US DTAA for computing the tax payable on royalty income r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of computation of total income and held that the rates prevailing during different periods under the DTAA and under Section 115A of the Act which are more beneficial to the assessee, have to be applied. The Tribunal deleted the levy of interest under Section 234B of the Act on the ground that the non-resident assessee was not liable for payment of advance tax. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the revenue, at the outset, fairly submitted that the 2nd substantial question of law has already been answered against the revenue by this Court vide order dated 14.09.2020 passed in ITA No.171/2011. However, while inviting the attention of this Court to Section 115A of the Act, it is su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of the above sub-clauses separately and the tax so computed has to be segregated as per the mandate of Section 115A(a)(b) which provides that the income tax payable shall be the aggregate of. The aforesaid expression which provides for aggregation of tax computed under each of sub-clauses (A), (AA), (B), (BB), (C) indicate that the charge of tax provided under the aforesaid clauses are separate and distinct. In this connection, reference may be made to the decision of the Supreme Court in UNION OF INDIA Vs. AZADI BACHAO ANDOLAN (2003) 263 ITR 706 (SC). 6. From conjoint reading of the provisions of Section 115A(1)(b) and sub-clauses (A), (AA), (B), (BB) and (C) thereof, it is evident that each sub-clauses are mutually exclusive and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 31.03.1976 and which are not effectively connected with permanent establishment, if any, of the non-resident in India. Prior to amendment of section 115A by the Act, the tax was payable on the gross amount of income at the rate of (i) 30% if income by way of royalty or FTS is received in pursuance of an agreement entered on or before 31.05.1997 (ii) 20% if income by way of royalty or FTS is received in pursuance of an agreement entered after 31.05.1997 but before 01.06.2005; and (iii) 10% if income by way of royalty or FTS is received in pursuance of an agreement entered on or before 01.06.2005. 26.2 India has tax treaties with 87 countries, majority of tax treaties allow India to levy tax on gross amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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