Applicability of DTAA cannot be determined suo-moto by AO

Google India Private Ltd. Vs. Addl. CIT (ITAT Bangalore)

TDS on royalty payments under section 195(2): Applicability of DTAA cannot be determined suo-moto  by AO without there being any application

Section 195(2) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), where the person responsible for paying any such sum chargeable under the Act (other than salary) to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer(AO) to determine, by general or special order, the appropriate proportion of such sum so chargeable, and upon such determination, tax shall be deducted under sub-section (1) only on that proportion of the sum which is so chargeable.

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