9911796707
TMI Blog2025 (4) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... justment made by the learned AO in rectification order u/s.154 r.w.s. 143(1) is of highly debatable nature and should not have been made at the time of processing of the return. It is submitted that it be so held now and the income returned by the Appellant at Rs. Nil should have been accepted. The learned CIT(Appeals) failed to appreciate this legal contention. 2.(i) The Learned CIT(Appeals) erred in law and on facts in upholding the order u/s.154 on intimation u/s.143(1) passed by learned AO, CPC taxing consultancy income of the Appellant, who is not having permanent establishment in India, at 40% plus applicable surcharge and education cess instead of granting treaty benefits as claimed under provisions of Article 7 of the India-UAE tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not at the rate of 40% as treated by the learned AO. Your Appellant, therefore, submits that in the facts and circumstances of the case, if at all tax is to be levied, it would be at the rate of 10% and not at the rate of 40%. Facts:- 3. The brief facts of the case are that assessee, which is a foreign company and earned consultancy income in India during the year, filed the return of income on 19.12.2018 declaring total income at Rs. 16,28,750/- and claimed a refund of Rs. 1,62,760/- on account of benefits under the DTAA between India & UAE and that the consultancy income earned was claimed as not taxable in India as per Article 7 of DTAA treating the same as business income and taxable in UAE only as the company had no Permanent Establ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer. The Ld. CIT(A) dismissed the appeal of the assessee. 6. Aggrieved by the order of the Ld. CIT(A), the Assessee filed appeal before the Tribunal. 7. Heard both the parties and perused the material available on record. 7.1 The assessee has filed Tax Residency Certificate (TRC) valid from January 2018 to December 2018. It is not in dispute that the assessee earned marking commission during the year. Since the assessee do not have any PE, the Article 7 is not applicable. Article 22 of DTAA reads as under:- Article 22 Other Income "...1. Subject to the provisions of paragraph (2), items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt with in the foregoing article ..... X X X X Extracts X X X X X X X X Extracts X X X X
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