Thursday, February 6, 2014

Sec. 40(a)(i) disallowances based on residential status doesn’t violate non-discrimination clauses of treaties

The Tribunal held as under:
1)  As section 40(a)(i) creates differentiation based on residential status, it does not violate non-discrimination clauses of treaties which forbid discrimination based on nationalities;

2)  A differentiation in treatment due to residential status cannot be covered by the scope of Article 24(1)/ Art. 25(1)/Art. 26(1) as such a differentiation is not due to nationality factor – Dy. CIT v. Gupta Overseas [2014] 42 taxmann.com 42 (Agra - Trib.)

No comments: