DTAA Cannot Reduce Dividend Distribution Tax: ITAT Chennai Rules DDT Refund Not Allowable

Advertisement ACIT Vs Durr India Pvt Ltd (ITAT Chennai) DTAA Cannot Override DDT Provisions-ITAT Chennai Allows Only 30% Disallowance u/s 40(a)(ia), But Denies DDT Refund Claim Assessee, engaged in providing paint finishing systems to automobile manufacturers, had filed return declaring Rs.29.64 crore. CPC made adjustments u/s 143(1), disallowing Rs.58,00,953 u/s 40(a)(i) for non-deduction of TDS on payments allegedly made to non-residents. CIT(A) found that the payees were resident Indians & restricted disallowance to 30% u/s 40(a)(ia), amounting to Rs.17,40,286. Tribunal noted that do...