Procedure to claim Refund On Contract Cancellation with non-resident

Case of the assessee is covered by sub-clause (b) of clause 2 of Circular No. 7 dated 23-10-2007 and it is also covered by clause 2(b) of Circular No. 790 dated 20.04.2000. In para 2.1 of Circular 7 dated 23-10-2007, it is clearly provided that once the amount already remitted in pursuance of a contract has been refund back to the remitted after cancellation of the contract, any income does not accrue to the non­resident. It is also provided in the circular that the amount of tax paid u/s. 195 can be refunded to the deductor with prior approval of the Chief Commissioner of Income Tax. The det...