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Danisco (India) Private Limited vs Union Of India & Anr. on 13 August, 2014

14. So, following the order passed by the coordinate Bench of the Tribunal in cases of DDIT (IT-II), Pune vs. Serum Institute of India Ltd., DCIT vs. M/s. Infosys BPO Ltd. and the judgment of Hon'ble Delhi High Court in case of Danisco India 10 ITA Nos.2260, 2261 & 2262/Del./2017 Pvt. Ltd. vs. UOI, we are of the considered view that ld. CIT (A) has erred in holding that in this case, provisions contained u/s 206AA overrides beneficial provisions of DTAA between India and Neitherland. Consequently, assessee has rightly deducted the tax @ 10% as per provisions contained under DTAA as section 206AA cannot have overriding effect on DTAA, hence no demand is payable by the assessee. Hence, question framed is decided in favour of the assessee. So, additions made by the AO and confirmed by the ld. CIT (A) to the tune of Rs.73,00,719.77, Rs.80,82,662.74 & Rs.57,05,582.11 for second quarter, third quarter and fourth quarter of FY 2012-13 respectively is ordered to be deleted. Consequently, all the appeals filed by the assessee are allowed.
Delhi High Court Cites 8 - Cited by 14 - V Bakhru - Full Document

Commissioner Of Central Excise, Pune ... vs M/S Serum Institute Of India Ltd on 20 May, 2009

14. So, following the order passed by the coordinate Bench of the Tribunal in cases of DDIT (IT-II), Pune vs. Serum Institute of India Ltd., DCIT vs. M/s. Infosys BPO Ltd. and the judgment of Hon'ble Delhi High Court in case of Danisco India 10 ITA Nos.2260, 2261 & 2262/Del./2017 Pvt. Ltd. vs. UOI, we are of the considered view that ld. CIT (A) has erred in holding that in this case, provisions contained u/s 206AA overrides beneficial provisions of DTAA between India and Neitherland. Consequently, assessee has rightly deducted the tax @ 10% as per provisions contained under DTAA as section 206AA cannot have overriding effect on DTAA, hence no demand is payable by the assessee. Hence, question framed is decided in favour of the assessee. So, additions made by the AO and confirmed by the ld. CIT (A) to the tune of Rs.73,00,719.77, Rs.80,82,662.74 & Rs.57,05,582.11 for second quarter, third quarter and fourth quarter of FY 2012-13 respectively is ordered to be deleted. Consequently, all the appeals filed by the assessee are allowed.
Custom, Excise & Service Tax Tribunal Cites 5 - Cited by 5 - Full Document

Ge India Technology Centre Pvt. Ltd.,, ... vs Addl.C.I.T., Bangalore on 17 November, 2017

The Hon'ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd. vs. CIT, (2010) 327 ITR 456 (SC) held that the provisions of DTAAs along with the sections 4, 5, 9, 90 & 91 of the Act are relevant while applying the provisions of tax deduction at source. Therefore, in view of the aforesaid schematic interpretation of the Act, section 206AA of the Act cannot be understood to override the charging sections 4 and 5 of the Act. Thus, where section 90(2) of the Act provides that DTAAs override domestic law in cases where the provisions of DTAAs are more beneficial to the assessee and the same also overrides the charging sections 4 and 5 of the Act which, in turn, override the DTAAs provisions especially section 206AA of the Act which is the controversy before us. Therefore, in our view, where the tax has been deducted on the strength of the beneficial provisions of section DTAAs, the provisions of section 206AA of the Act cannot be invoked by the Assessing Officer to insist on the tax deduction @ 20%, having regard to the overriding nature of the provisions of section 90(2) of the Act. The CIT(A), in our view, correctly inferred that section 206AA of the Act does not override the provisions of section 90(2) of the Act and that in the impugned cases of payments made to non-residents, assessee correctly applied the rate of tax prescribed under the DTAAs and not as per section 206AA of the Act because ITA Nos.1601 to 1604/PN/2014 the provisions of the DTAAs was more beneficial. Thus, we hereby affirm the ultimate conclusion of the CIT(A) in deleting the tax demand relatable to difference between 20% and the actual tax rate on which tax was deducted by the assessee in terms of the relevant DTAAs. As a consequence, Revenue fails in its appeals."
Income Tax Appellate Tribunal - Bangalore Cites 4 - Cited by 186 - Full Document
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