DTAA Relief Not Available Against DDT Liability u/s 115-O: ITAT Pune

Kalyani Maxion Wheels Private Limited Vs DCIT (ITAT Pune) Assessee, an Indian company, declared dividends to its German shareholder Maxion Wheels Holding GmbH. While paying Dividend Distribution Tax (DDT) u/s 115-O, Assessee claimed that tax should be restricted to the lower rate prescribed under India-Germany DTAA (Article 11). It contended that since treaty provisions are beneficial, excess DDT paid ought to be refunded. CIT(A) rejected the plea, following settled view that DDT is a levy on the domestic company and not on the shareholder. Hence, DTAA relief cannot be invoked by the company. ...