Facts
a)
Assessee, a company incorporated in Cyprus, received
interest in respect of investment made in debentures of an Indian Company.
b)
The said interest income was offered to tax at the rate of
10% purportedly in line with the provisions of Article 11(2) of the
India-Cyprus Double Taxation Avoidance Agreement (DTAA).
c)
Assessing Officer taxed interest income at normal rate of
43.23 % on ground that assessee did not fill up the 'Special Income' (SI)
schedule in the return of income.
d)
Aggrieved assessee filed the instant appeal before the
tribunal.
The
tribunal held in favour of assessee as under-
1)
In the instant case, it was undisputed that assessee was entitled
to benefit of India-Cyprus DTAA and its income was liable to tax at lower rate
of 10 per cent.
2)
Hence, benefit of
DTAA couldn’t be denied on mere technical failure of assessee to fill up
'Special Income' schedule in return of income- [2016] 67 taxmann.com 368
(Mumbai - Trib.)
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