Skaps Industries India Pvt Ltd Vs ITO (ITAT Ahmedabad)
Author in this articles discusses recent decision of ITAT – Ahmedabad holding that:
1. an eligible assessee cannot be declined the Treaty protection under section 90(2) of the Income Tax Act, 1961 [the Act] on the ground that the said assessee has not been able to furnish a Tax Residency Certificate [TRC] in the prescribed form as required by the section 90(4).
2. but production of TRC by itself may not be sufficient…
The second limb of law as laid down may put an onerous obligation of payers in India.
Citation of the case
Skaps Industries India Pvt Ltd v Income Tax Officer, International Taxation, Ahmedabad dated June 21, 2018
ITA Nos. 478 and 479/Ahd/2018 Assessment years: 2013-14 and 2014-15
Ahmedabad D BENCH of the Income Tax Appellate Tribunal
The judgement is a very brief but a speaking one [11 Pages]. Most relevant paragraphs for this topic are from 8 to 10 [both inclusive]. Copy of judgement is made available for download.
Entering the subject
a) You would be aware that section 90 and section 90A authorise Government of India to enter into agreement [Treaty] with other country[ies] which will over-ride the provisions of the Income Tax Act, 1961 to the extent beneficial to the assessee.
b) Thus a Treaty acts as a shield against double taxation on the same income.
Facts of the case
c) The case revolves around a very narrow compass of facts.
