Back
DELHI HIGH COURT
RAJIV SHAKDHER, JASMEET SINGH
Ge Energy Parts Inc – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
| Table of Content |
|---|
| 1. application for nil withholding tax rate. (Para 1) |
| 2. arguments against the ao's conclusion. (Para 2) |
| 3. revenue's support for ao's order. (Para 3) |
| 4. court's observations on future applications. (Para 4 , 5 , 6) |
| 5. disposition of writ petitions. (Para 8 , 9) |
JUDGMENT
[Physical Court Hearing/Hybrid Hearing (as per request)]
Rajiv Sjakdher, J. (Oral)--The above-captioned writ petitions are directed against the order(s) dated 23.09.2021, passed by the Assessing Officer (AO) in respect of the application(s) preferred by the petitioners under Section 197 of the Income Tax Act, 1961 [in short "the Act"]. To be noted, the said application(s) relate to Financial Year (FY) 2021-2022.
1.1. The purpose with which the aforementioned application(s) were preferred by the petitioners for the FY 2021-2022, was that the payer should not withhold any money towards tax i.e., the withholding tax should be pegged at "Nil" rate.
1.2. Via the impugned order(s), the AO has concluded that the withholding tax rate should be pegged at 4%.
2. Mr Sachit Jolly, who appears on behalf of the petitioners, submits that the order passed by the AO is wholly erroneous, as, in another proceedings car
The court emphasized that previous Tribunal decisions on profit attribution must be considered in subsequent applications regarding withholding tax rates, reinforcing the principle of adherence to es....
The court's decision was influenced by the interpretation of the Income Tax Act and the Double Tax Avoidance Agreement, as well as the determination of the appropriate rate of withholding tax for the....
The main legal point established is that the concerned officer must consider the nature of rights conferred under agreements and apply relevant legal provisions and judicial precedents when deciding ....
Tax authorities must comply with statutory rules when issuing TDS withholding certificates; failure to do so invalidates the order.
The court emphasized that the Department cannot refuse to follow binding jurisdictional decisions merely on the basis of proposing to file an appeal.
The court ruled that the withholding tax rate of 5% under the India-Switzerland DTAA should be applied, overriding the 10% imposed by the respondent, based on established precedents.
A foreign enterprise must generate profits for tax attribution to a permanent establishment in another country; losses negate any such tax obligations under relevant treaties.
A taxpayer is entitled to timely decisions on applications for lower withholding tax rates under the Income Tax Act based on the provisions of applicable Double Taxation Avoidance Agreements.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
