Case Law Details
In this case, M/s Prudential Assurance Co. Ltd , a tax resident of UK, was denied the benefit of setting off of the business loss from sale of shares against the income from other sources by the Assessing Officer (‘AO’) on the ground that the assessee had no Permanent Establishment in India as per Article 5 of the India-UK Double Taxation Avoidance Agreement . The Honourable Mumbai Tribunal observed that the assessee chose to be ruled by the provisions of the Income Tax Act, 1961 and not DTAA. Thus, the AO was not justified in directing that the business loss should be considered as per provisions of DTAA and therefore taxing the income from other sources without allowing its set off against the business loss.
INCOME TAX APPELLATE TRIBUNAL
ITA No.7353/Mum/2011 : Asst. Year 2003-2004
The Prudential Assurance Co. Limited Vs. The Asstt. Director of Income-tax
Date of Pronouncement : 26.03.2012
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