Tribunal doubts whether tax treaty benefits can be extended to DDT

DCIT Vs Total Oil India Pvt Ltd (ITAT Mumbai) The Hon’ble Mumbai ITAT in the matter of Deputy CIT vs. Total Oil India Pvt. Ltd. has expressed doubts on the correctness of the decisions of the coordinate benches on the dividend distribution tax (DDT) rate being restricted by the treaty provision dealing with taxation of dividends in the hands of the shareholders. In those decisions, Delhi ITAT (in the case of Giesecke & Devrient India Pvt Ltd Vs ACIT) held that tax rates specified in DTAA in respect of dividend must prevail over DDT and the similar stand was adopted by Kolkata Tribunal i...