Case Law Details
ADIT (IT) 3(1) Vs Global Cricket Corporation Pte Ltd. (ITAT Mumbai)
ITAT Mumbai held that provisions of Article 24 of DTAA between India and Singapore will be applicable only when condition no. 1, condition no. 2 and condition no. 3 in paragraph 4.2 are satisfied simultaneously. Here, as condition no. 1 is not satisfied, DTAA would not be attracted in case of GCC.
Facts- AO had denied the benefit of DTAA to GCC by holding that provisions of Article 24 of DTAA are attracted mainly on the ground that payments have not been remitted to Singapore.
In appeal preferred by GCC on this issue, CIT(A) was of the view that all the three conditions specified in paragraph 4.2. above should be satisfied simultaneously. Since in case of GCC Condition 1 and Condition 3 were not satisfied, the provisions of Article 24 of DTAA would not be attracted. Accordingly, the CIT(A) held that GCC was entitled to claim benefit of the provisions of DTAA. Being aggrieved the Revenue is in appeal before us on this issue.
Conclusion- We have perused the documents/material relied upon by GCC in this regard including the income tax returns, financial statements, and confirmation from tax advisor. GCC has offered to tax its worldwide income in Singapore. Since Condition No.1, being one of the three conditions which are to be satisfied simultaneously for triggering the provisions of Article 24 of DTAA, is not satisfied, the CIT(A) was correct in holding that the provisions of Article 24 of DTAA would not get attracted and GCC would be entitled to claim benefit of the provisions of the DTAA. Since Condition No. 1 is not satisfied, the rival contentions in relating to the other two conditions (Condition No. 2 & 3 specified in paragraph 4.2 above) do not require adjudication having become academic in the context of applicability of Article 24 of DTAA.
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