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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Riso India Private Limited – Appellant
Versus
Principal Commissioner of Income Tax – Respondent
| Table of Content |
|---|
| 1. challenging order under income tax act (Para 2 , 3) |
| 2. arguments about tax deduction rates (Para 4 , 5) |
| 3. court's observation on lack of reasoned order (Para 6) |
| 4. order remanding for reasoned decision (Para 7) |
| 5. writ petition disposed and order uploaded (Para 8 , 9) |
JUDGMENT
Manmohan, J.: (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the order dated 31st March, 2021 passed by the respondent-PCIT, Delhi-7, for assessment year 2016-17, under Section 264 of the INCOME TAX ACT , 1961 [for short `the Act'], whereby the respondent refrained from giving any finding on merits and declined to entertain the petitioner's revision petition. Petitioner also seeks a direction to the respondent to decide the petitioner's revision petition on merits.
3. Learned counsel for the petitioner-assessee states that the petitioner, a wholly owned subsidiary of Riso Corporation Japan, had remitted dividend to its holding company on which tax was deducted @ 20.35% under Section 115-o of the Act, even though as per the beneficial provisions of India- Japan Double Taxation Avoidance Agreement (DTAA), the tax was require
The court ruled that under Section 264 of the Income Tax Act, the respondent must provide a reasoned decision on the merits of a revision petition, rejecting arbitrary dismissals without analysis.
Double Taxation Avoidance Agreement - Refund of excess tax - Rate of tax on distributed profits that is applicable is one stipulated under section 115-O of Tax Act and not one prescribed under Articl....
Tax authorities are obligated to provide reasoned orders in responses to petitions, and binding ITAT decisions must be followed unless properly contested.
DDT is tax on shareholders' dividend income collected from company; DTAA lower rates cap DDT liability under section 90(2), enabling refund of excess to paying company.
DDT on dividends to non-resident shareholders under India-UK DTAA restricted to 10%; excess refundable as it constitutes tax on dividend income. No interest u/s 234B/C on unforeseeable APA incrementa....
Division Bench refers to Larger Bench whether DDT on dividends to non-residents is capped by DTAA Article 11 or remains company's additional tax on profits per Section 115-O, due to conflict with pri....
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