Case Law Details
Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of DDIT Vs Siemens Aktiengesellschaft (ITA No. 6133/Mum/2002, ITA No. 7589/Mum/2003) held that the withdrawal of circular no. Circular no. 23 dated 23 July 1969 and Circular No. 786 dated 7 February 2000 by Central Board of Direct Taxes (CBDT) is effective from 22 October 2009 as made applicable vide Circular No. 7 dated 22 October 2009.
Accordingly, it was held that the circular which was operational in AY 1998- 99 cannot be held to be non operational simply because it has been withdrawn in the year 2009. The withdrawal of such circulars will be effective only after 22 October 2009 and it cannot be applied to the year in which it was in operation.
Facts of the case
- The taxpayer, a non-resident company entered into two contracts with Gujarat Power Gen Energy Corporation Limited for supply of material/ equipment, design and engineering of erection material / equipment for the consideration of Deutsche Mark (DM) 713 million and DM 32 millions respectively on 12 May 1994.
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