9911796707
TMI Blog2021 (5) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... order is barred by limitation in as much as there was no need to frame a draft assessment order as per provisions of section 144C(13) - AO proposed that the interest income is to be taxed @ 20% u/s 115A(1)(a)(ii) - HELD THAT:- AO shall forward the draft of the proposed order if he proposes to make any variation in the income or loss returned. The aforestated proposal in the draft assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act for Assessment Year 2014-15. 2. The first challenge is that the assessment order is barred by limitation and the second challenge is in respect of action of the Assessing Officer stating that the assessee is not the beneficial owner of interest income earned by it and is therefore not eligible to claim the beneficial tax rate of 10% in terms of Article 11 of the India-Cyprus Double Tax Avoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have a primary purpose of obtaining treaty benefits. The assessee filed necessary details with detailed submissions. After considering the details and the submission, the Assessing Officer issued a show cause asking the assessee why the treaty benefit should not be disallowed. The assessee filed detailed reply in support of its claim of treaty benefit. The replies of the assessee do not find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income Interest income earned by the assessee 24,82,52,000 Tax at beneficial tax rate as per DTAA (10%) 2,48,25,000 As per Draft assessment order Interest income earned by the assessee 21,15,22,610 Tax U/s 115A(1)(a)(ii) @ 20% 4,23,04,522 Decrease in refund on disallowance of DTAA Benefit 1,74,79,525 8. Provision of section 144C(1) read as under:- "144C. (1) The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, therefore, the assessment order should have been framed as per the provisions of section 153 r.w.s. 143(3) of the Act meaning thereby that the assessment order dated 07.09.2018 is barred by limitation. 10. In the light of the facts mentioned elsewhere when considered within the provisions of section 144C(1) supra, we have no hesitation to hold that the assessment order is barred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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