As per the DTAA one income taxed only onece at the time of received and it cannot be taxed in both the country

Last updated: 08 February 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We have considered the facts of the case and submissions made before us. We have already mentioned that there is a distinguishable feature namely that the assessee has received payments from persons residents in India. However, the receipts have been taxed u/s 9(1)(vii), Explanation 2, Clause (vi) thereunder. The decision in the case of Asia Satellite Telecommunications Company Limited is to the contrary and in favour of the assessee. It is also a matter of fact on record that the assessee is a tax resident of USA and, therefore, the provisions contained in the DTAA are applicable. However, we are of the view that we need not go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee

Citation :
M/s Intelsat Corporation,C/o PricewaterhouseCoopers (P) Ltd.,Sucheta Bhawan, Gate No.2, 1st Floor,11A,Vishnu Digambar Marg,New Delhi – 110 002.PAN: AADCP6533D.(Appellant) Vs. Assistant Director of Income Tax,Circle-1(2),International Taxation,New Delhi. (Respondent)