Pernod Ricard India Private Limited, New Delhi V. ACIT Circle-31, New Delhi

ITA 1137/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 5754 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 29-04-2024
• Assessment Year: 2006-2007
• Appeal Filed On: 18-04-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITAs No.1136, 1137, 1338, 1139, 1140, 1141 & 1142/Del/2023 Assessment Years 2005-06, 2006-07, 2009-10, 2011-12, 2013-14, 2014-15 & 2015-16 Pernod Ricard India Private Limited Atelier, No.10, Level-1, Worldmark - 2, Aerocity, New Delhi. Vs. ACIT, Circle-31 New Delhi TAN/PAN: AAACS4781P (Appellant) (Respondent) Applicant by: Ms. Priya Tandon, Adv. Shri Anmol Anand, Adv. Respondent by: Shri P.N. Barnwal, CIT-DR Date of hearing: 30 04 2024 Date of pronouncement: 19 07 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T he c a p t i on e d A pp e a ls ha ve be e n p r e f e r r e d b y t h e as s e s s e e a ga i n s t t he re s p e c t i ve o r de r s p a s s e d b y t he C I T ( A ) f o r c a p ti on e d a s s e s s m e nt ye a r s a s t a b ul a t e d be l o w : Sr. No. ITA/CO Nos. Appeal by A.Y. Pr.CIT Order dated Assessment Order dated Remarks 1. ITA No.1136/Del/2023 Assessee 2005-06 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 2 ITA No.1137/Del/2023 Assessee 2006-07 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 3. ITA No.1138/Del/2023 Assessee 2009-10 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 4. ITA No.1139/Del/2023 Assessee 2011-12 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. ITAs No.1136 to 1142/Del/2023 2 5. ITA No.1140/Del/2023 Assessee 2013-14 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 6. ITA No.1141/Del/2023 Assessee 2014-15 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 7. ITA No.1142/Del/2023 Assessee 2015-16 CIT(A)-30, New Delhi order dated 20.02.2023 Assessment order dated 26.11.2021 Assessment Order under section 237 of the Income Tax Act, 1961. 2. B r i e f l y s ta t e d , t h e a s s e s s e e -c o m pa n y i s a p r i va te l i m i t e d c om p a n y i nc o rp o ra t e d i n I n d i a . T he A s s e s s e e i s p ri m a r i l y e nga ge d in t he bu s i n e s s of m a n uf a c tu r e a nd s a l e o f a l c o ho l i c be ve ra ge s i n In di a . T h e a s s e s s e e - c om p a n y i s a w h ol l y o w ne d s u b s i di a r y of Pe r i M a u ri ti u s , M a u r it i u s . St a t e dl y , t he h o l di n g c o m pa n y i . e . Pe ri M a ur i t i u s is a T a x R e s i de n t o f M a u ri t i u s a n d i s e l i gi bl e t o c l a i m b e n e f i t s un d e r the D o u b l e T a xa t i o n A voi d a nc e A g r e e m e n t ( D T A A ) e n te r e d i n t o be t w e e n In dia a n d M a u r i t i u s . 2. 1 D u r i n g t h e Fi na n c i a l Y e a r 20 0 4- 05 r e l e v a n t t o A. Y . 2 0 05 -0 6 , t he a s s e s s e e - c o m pa n y h a s pa i d di vi de n d o f ₹50 , 0 2, 4 8, 0 0 0/ - t o i t s ho l d i n g c o . Pe r i M a u r i ti u s o n w h i c h D i v i de n d D i s t r i b ut i o n T a x (D D T ) li a b i l i t y o f ₹7 , 0 1, 6 0 , 0 0 0/ - w a s p a i d b y th e a s s e s s e e - c om p a n y i n te r m s o f p ro vi s i on s of Se c t i on 1 1 5O o f t he A c t . Si m i l a r p a y m e n ts b y w a y of D D T w e re p a id b y t h e a s s e s s e e c o m pa n y on d i s t ri b u t i o n of d i vid e n d f o r di f f e r e nt a s s e s s m e nt ye a rs u n d e r c a pt i o ne d a pp e a l s . 2. 2 T h e a s s e s s e e m o ve d a n a pp l i c a t io n d a t e d 1 8. 0 2 . 20 1 9 u n d e r Se c t i o n 23 7 o f t h e A c t be f o r e t h e A O s e e ki n g r e f un d du e t o e x c e s s p a ym e n t o f D D T f or a l l s uc h ye a r s . T o c on t e n d e x c e s s t a x p a i d b y w a y o f D D T , t he a s s e s s e e p oi n t e d o ut be f o re t he A O t h a t w hi l e t he DD T h a s t o b e p a i d a s pe r t h e ra t e s [ 1 2. 5 % pl u s s u r c ha r ge e t c . w hi c h w a s e nh a nc e d t o 15 % + s u rc h a r ge e t c f ro m A Y 2 00 7- 0 8] p re s c r i be d u n d e r Se ct i on 1 15 - O o f t he A c t , t h e A rt i c l e - 10 o f I n d o - M a u r it i u s T re a t y p ro vi de s f o r t a xa t i o n o n di vi de n d d i s t ri b u ti o n a t a l o w e r r a t e of 5 % q u a t he r a te p re s c r i b e d u n d e r Se c t i on 11 5 - O o f t he A c t . A s a c o r o l la r y, t h e a s s e ss e e - c om p a n y ha s p a i d D D T i n e x c e s s o f w h a t w a s a c t u a l l y l i a b l e t o be pa id i n t e r m s of t r e a t y. ITAs No.1136 to 1142/Del/2023 3 H e n c e , i n t e rm s o f S e c t i on 2 3 7 of t h e A c t , t h e a s s es s e e i s e l i gi b l e f o r a re f un d o f e x c e s s D D T of va r i e d a m ou n ts f or a l l s u c h ye a r s d e t a i l e d he r e i n. I n IN R c r o r e s A . Y D i v i d e n d p a i d D D T p a i d D D T @ 5 % C l a i m f o r r e f u n d (A ) ( B ) ( A - B ) 2 0 0 5 -0 6 5 0 . 0 2 7 . 0 2 2 . 5 1 4 . 5 1 2 0 0 6 -0 7 2 6 . 0 1 3 . 6 5 1 . 3 0 2 . 3 5 2 0 0 9 -1 0 1 2 6 .0 7 2 1 . 4 3 6 . 3 1 1 5 . 1 2 2 0 1 1 -1 2 4 9 7 .2 9 8 2 . 5 9 2 4 . 8 6 5 7 . 7 3 2 0 1 3 -1 4 4 7 6 .3 0 7 7 . 2 7 2 3 . 8 1 5 3 . 4 5 2 0 1 4 -1 5 7 4 0 .3 7 1 2 5 .8 3 3 7 . 0 2 8 8 . 8 1 2 0 1 5 -1 6 4 6 7 .0 7 7 9 . 3 8 2 3 . 3 5 5 6 . 0 3 3. T h e A O h o w e ve r r e f us e d t o e n t e r t a i n t h e c l a i m o f r e f u nd on a c c ou nt o f e x c e s s D D T p a i d on t w o c o un t s (i ) t he Fin a nc e A c t , 1 9 9 7 c ha n ge d t h e s y s t e m of t a x a t i o n a n d m a d e d i vi d e n d c ha r ge a bl e i n t he ha n d s o f t h e p a ye r -c o m pa n y . T h e c l a i m to w a r ds e x c e ss pa ym e nt t ow a r d s t a x o n d i s t ri b ut e d p r of i t s , i f a n y, c a n be e xa m i n ed o nl y w h e r e i t i s m a de b y th e s ha r e ho l de r a n d n ot b y t h e c o m pa n y. T h e d i vid e n d i n q ue s t i o n i s no t r e c o r de d a s i n c om e o f t he c a p t i on e d a s s e s s e e a nd t he r e f o re , t he a pp l i c a nt - a s s e s s e e i s n ot e n t it l e d to c l a i m r e f u n d d ue t o p u r p or t e d e x c e s s pa y m e nt of t a x on d i v i de n d di s t r i b u t i on ( i i ) t h e D DT re f un d c l a im w a s no t m a de b y t he a s s e s s e e i n t h e R e t u rn o f I nc o m e (RO I ) a n d c on s e q ue n t l y i n t e rm s o f G o e t z e (I nd i a ) Lt d . v . C I T ( 20 06 ) 2 8 4 I T R 3 2 3 (S C ), t he a s s e s s e e c a n no t c l a im r e f u n d i n th e a bs e nc e of a ny r e vi s e d re t u rn f i l e d i n t hi s r e ga r d . T he a p p l i c a t i on m o ve d u n d e r Se c t i o n 2 37 w a s t h u s r e j e c t e d . 4. A gg ri e ve d, t h e a s s e s s e e p r e f e r re d a pp e a l b e f o r e th e C IT ( A ) . T he C I T ( A ) a l s o d e c l in e d t o i n t e r f e re w i t h t he a c t i o n of th e A O f o r va r i e d re a s o n s . T h e r e l e va n t op e r a ti ve p a ra g ra p h of t h e o rd e r of t h e C IT ( A ) i s re p r o d uc e d he r e u n d e r : “ 7 . 3 O n c a r e f u l p e r u sa l o f t h e f a c t s o n r e c o rd s a n d t h e l e g a l p o s i t i o n , i t i s o b s e r v e d : - ITAs No.1136 to 1142/Del/2023 4 ( a ) T h e d i v i d e n d i s a n i n c o m e i n t h e h a n d s o f t h e sh a r e h o l d e r s n o t i n t h e h a n d s o f t h e a p p e l l a n t . ( b ) P r o v i s i o n s o f S e c t i o n 1 1 5 - O w e r e i n c l u d e d i n t he s t a t u t e t o c o l l e c t t h e t a x e s a t t h e t i m e o f d e c l a r a t i o n / d i s t r i b u t i o n o f d iv i d e n d b y t h e d o m e s t i c c o m p a n i e s f o r t h e a d m i n i s t r a t i v e c o n v e n i e n c e . I t d id n o t c h a n g e t h e c h a r a c t e r o f t h e d iv i d e n d i n c o m e a n d i t r e m a i n s t h e i n c o m e o f s h a r e h o l d e r s . ( c ) T h e b e n e f i t o f D T A A i s a v a i l a b l e t o t h e e l i g i b le n o n - r e s i d e n t n o t t o t h e d o m e s t i c c o m p a n i e s . I n c a s e o f e x c e s s i v e w i t h h o l d i ng s / p a y m e n t o f t a x e s o n b e h a l f o f n o n - r e s i d e n t , t h e b e n e f i t o f s u c h e x c es s i v e p a y m e n t s h a l l a r i s e o n l y t o t h e b e n e fi c i a r y n o n - r e s i d e n t n o t t o th e d o m e s t i c d e d u c t o r . ( d ) W i t h o u t c o m m e n t i n g o n t h e a p p l i c a b i l i t y o f I n d ia - M a u r i t i u s t r e a t y i n t h e c a s e o f M / s . P e r i M a u r i t i u s a s i t i s n o t a m a t te r i n t h i s a p p e a l , i t i s o b s e r v e d t h a t e v e n i f M / s . P e r i M a u r i t i u s i s t h e b en e f i c i a r y o f t h e t r e a t y , t h e r e f u n d o f e x c e s s p a y m e n t c a n n o t b e c l a i m e d b y th e a p p e l l a n t - c o m p a n y a s p a y m e n t o f a n y s u c h r e f u n d w i l l n o t b e b e n e f i t t in g t h e n o n - re s i d e n t s h a r e h o l d e r s b u t t h e c o m p a n y . 7 . 4 I n v i e w o f t h e a b o v e o b s e r v a t i o n s , I f i n d t h a t t h e d e c i s i o n o f L d . A s s e s s i n g O f f i c e r i n t h i s c a s e i s c o r r e c t a s p e r l aw a n d i s a c c o r d i n g l y , s u s t a i n e d . T h e a p p e a l f i l e d b y t h e a p p e l l a n t i s d i sm i s s e d . ” 5. F u r t he r a g gr i e ve d , t h e a s s e s s e e p r e f e r re d a p p e a l b e f o r e t he T ri b un a l . 6. T h e l d . c o u ns e l f o r t h e a s s e s s e e , a t t h e o u ts e t , a d ve r t e d t o Se c t i on 23 7 o f t h e A c t a nd s u bm i t t e d t h a t s u c h p ro vi s io n e nt i tl e s t h e a s s e s s e e to c l a i m re f un d of e x c e s s t a x p a id b y i t o w i n g t o i na dve r t e nc e o r m i s t a ke c om m i t t e d . I n t h e pr e s e n t c a s e , t h e a s s e s s e e - c om p a ny w h i l e m a k i n g di s tr i b ut i on / re m i t t a nc e o f d i vi d e n d t o i t s n o n - res i d e nt s h a r e h o l de r (a t a x r e s i d e nt o f M a ur i t i us ) h a s p a i d D D T a t a p pl i c a bl e ra t e s r a n g i n g be t w e e n 1 2 . 5 % t o 1 5% + s ur c ha r ge + c e s s u nd e r S e c t io n 1 1 5- O o f t he A c t i ns t e a d o f 5 % a p pl i c a b le t o re s i d e n t s of M a u ri ti us i n t e r m s of A r ti c l e 10 ( 2) (a ) o f In d o - M a u ri t i u s D T A A on d i vi d e nd p a ym e n t. T h e l d . c o un s e l s u bm i t t e d t h a t s ha r e ho l d e r M / s . P e r i M a u ri t i u s be i ng a t a x r e s i d e nt of M a u ri t i u s , t h e t a x l ia b i l i t y on d i vi d e nd s t a n ds @ 5% o nl y a s pe r I nd i a - M a u ri t i u s D T A A . T h e e x c e s s t a x pa i d b y t he a s s e s s e e w h il e m a ki n g t he di s tr i b ut i on of d i vid e n d un d e r Se c t i on 1 1 5- O of t h e A c t i s t hu s l i a bl e t o re f un d u n d e r S e c t i o n 2 37 o f t h e A c t. T h e l d . c o u ns el a dve r te d t o pr o vi s i o ns o f Se c t i o n 2 3 7 o f t he A c t , S e c t i o n 1 1 5 - O o f t h e A c t a n d ITAs No.1136 to 1142/Del/2023 5 A r t i c l e 1 0 of D T A A t o c o nt e n d t h a t t h e r e ve n ue a ut ho ri t i e s w e re n o t j us t i f i e d i n l a w i n re t a i n i n g t he e x c e s s d i s t r ib u t io n t a x p a i d b y t he a s s e s s e e - c o m pa n y o v e r a n d a b o ve t he b e n e f i c i a l ta x r a te o f 5 % a pp l i c a bl e i n t e r m s of A r t i c le - 1 0 o f D T A A . T h e l d. c o un s e l t hus u r ge d f o r a di r e c t i on t o t h e A O t o r e f u n d t he D T T pa i d i n e x c e ss o f 5 % b y t he a s s e s s e e - c o m pa n y f o r d i f f e re n t a s s e s s m e n t ye a r s . 7. T h e l d. C IT - D R , o n t he o t h e r h a n d , re l i e d u p on the o r d e r p a s s e d b y t he A O u n d e r S e c t i o n 2 37 of t h e A c t a n d t h e f i rs t ap pe l l a t e o r de r pa s s e d t he r e on . In f u r t h e ra n c e , th e l d. C IT - D R s ub m i t t e d tha t a p l a i n r e a d i n g o f Se c t i on 2 3 7 w o u l d r e ve a l th a t c l a i m o f r e f u n d o f a ll e ge d e x c e s s t a x, i f a ny , i s p l a u s i b l e o nl y w h e re t he a m o un t is c h a r ge a bl e i n t he h a n d s of t he a s s e s s e e s e e ki n g r e f u n d. I n t he i n s t a nt c a s e , t h e di v i d e n d i s n ot c ha r ge a b l e to t a x i n t h e ha n d s o f t h e a s s e s s e e p a yer pe r s e. T h e d i vi d e n d i nc o m e h a s n o t be e n i n c l ud e d a s t a x a bl e i n c om e . T he t a x h a s be e n p a i d b y t h e a s s e s s e e i n t e rm s of Se c t i o n 1 15 -O of t h e A ct c l a s s i f i e d a s ‘s pe c i a l p r o vi s i o n ’ r e l a t i n g t o ‘ T a x i n D i s t r i bu t i on P r of i t s o f D om e s t i c C o m p a ni e s ’ . A s p e r t h e o ve r r i di n g p ro vi s i o n s o f Se ct i o n 1 15 -O , a n ob l i ga t i o n ha s be e n s h i f te d u p on t h e d om e s t i c c o m p an y p r o po s i n g t o de c l a r e , d i s t r i b u t e o r p a y a m o u n t s b y w a y of di vi den d t o it s s h a r e ho l de r s i n de p a rt u re t o no r ma l ru l e o f t a xa t i o n of d i vi d e nds i n t he ha n ds o f re c i p i e nt s . Se c t io n 1 1 5 - O ha s m e r e l y c a u s e d a n a dd it i o n a l b u rd e n u p o n t he c o m p a n y d e c l a r i n g / d i s t r ib u t i n g d i v i de n d t ow a rd s p a ym e n t o f D D T w h i c h s ha l l b e r e ga r de d a s a dd i t i on a l i n c o m e t a x o n di s t r i bu t e d pr of i t s . T hu s , t he a s s e s s e e i n th e i ns t a n t c a s e h a s pa i d d i st ri b u t i o n t a x a t s p e c i f i e d r a t e a s pr o vi d e d u nd e r S e c ti o n 11 5 - O o w i ng t o s p e c i a l pr o vi s i o n. T he r e i s n o le ga l o bl i ga ti o n t o p a y t a x u p on t h e s ha r e h ol d e r w h o i s re c i p i e n t of t h e di vi de n d i nc o m e i n vi e w o f Se c t i on 1 1 5- O of t he A c t no t w i t h s t a n d i n g de f a ul t , i f c o m m it t e d , i n p a ym en t o f D D T b y t he D o m e s t i c C o m pa n y di s t r i bu t i n g d i v i d e n d . T he p a ym e n t of D D T th u s i s no t o n b e h a l f of t h e s ha r e ho l de r bu t o w i n g t o o bl i ga t io n s qu a re l y p l a c e d up o n t he do m e s t i c c o m p a n y d i s t r ib u t in g p ro f i ts b y wa y o f d i vi d e nd . T he pa y m e nt of ta x is t o b e r e ga r d e d a s a d d i t i o na l i nc om e t a x o n a c c ou nt o f ITAs No.1136 to 1142/Del/2023 6 di s tr i b ut i on o f p ro f i t s i n di s t i n c t i o n t o vi c a r i ou s l ia b i l i t y o f p a ym e n t o f t a x on b e h a l f o f s h a re h o ld e r . H e n c e , t h e b e ne f i t o f A r t ic l e - 10 i s n ot a va i l a b le t o t he d o m e s t i c c om p a n y. I n t h e a bs e nc e of a n y o b l i ga t i on t ow a r d s p a ym e n t o f t a xa t i on u p on t h e b e ne f i c i a l ow ne r o f th e d i vi d e nd , t he b e n e f it o f t re a t y i n te r m s of pr o vi s i o ns o f A r ti c l e - 1 0 i s n o t t r i gge r e d a t a ll . T h e Ld C I T - D R a l s o p le a d e d t h a t the i s s ue is n o l on ge r re s i nt e g ra . T he i s s ue h a s b e e n d ul y e xa m i n e d b y t h e s p e c ia l b e nc h i n t h e c a s e o f D C I T vs . T o t a l O i l I nd i a ( P ) Lt d ( 2 0 2 3 ) 1 49 t a xm a n n. c o m 33 2 (M u m - SB ) w h e re i n t h e i s s u e w a s d e c i de d i n f a vo ur o f t h e r e venu e . T he C IT - D R t h u s c on t e nd e d t ha t t h e v i e w o f t he l o w e r a u t ho ri t i e s a re i n a c c o r d a nc e w i t h l a w a nd c a nn o t b e f a u l t e d. H e nc e n o i n t e r f e r e n c e w ith t h e a p p e l l a t e or d e r un d e r c h a ll e n ge i s c a ll e d f o r . 8. W e h a ve c a re f ul l y c o n s i de r e d t h e r i va l s u bm i s s i on s a nd p e r us e d t he m a t e r ia l a va i l a bl e o n r e c or d . 9. I t is t h e c a s e o f t h e a s s e s s e e th a t w hi l e t he a ss e s s e e h a s pa i d D D T un d e r Se c t i on 11 5 -O o f t h e A c t a t a pp l i c a b l e ra t e un d e r t he A c t w h i c h i s 12 . 5 % + s u r c ha r ge + c e s s f or A . Y s . 2 0 05 - 0 6 a n d 2 0 06-0 7 a n d 1 5% + s u rc h a r ge + c e s s f o r r e m a in i n g ye a r s i n a p pe a l , t he a s s e s s e e i n t e rm s o f A r t i c l e 1 0 ( 2 ) ( a ) of D T A A b e t w e e n I n di a a n d M a ur i t i us i s l i a bl e t o p a y l ow e r r a te o f t a x , i . e . 5% on d i vi d e n d pa ya b l e t o th e s h a r e h ol d e r ( t a x re s id e n t o f M a u ri t i u s ) a nd c o n s e qu e nt l y a s s e s s e e is e n t i t le d t o re f un d o f e xc e s s t a x c ol l e c t e d b y t h e re ve nu e o n di vi de n d di st r i b ut e d a nd p a i d t o t he H o l d in g c o m p a n y (a t a x r e s i de n t of M a u ri t i us ). T h e a s s e s s e e h a s t h u s a l le ge d t h a t t h e R e v e nu e A u t ho ri t i e s h a v e w r on gf u l ly re t a i n e d e x c e s s t a x pa i d on re m i t t a nc e o f di vi de n d a n d t h us w r o n gf ul l y d e ni e d t h e be n e f i t o f t re a t y a va i l a bl e t o t h e a s s e s s e e . 10 . W e s t r a i gh t a w a y t a k e n ot e o f t h e s pe c i a l b e n c h de c i s i o n i n t h e c a s e of T o ta l O i l ( s u pr a ) . In t ha t c a s e , t h e a s s e s s e e M /s T o ta l O il I n di a Pr i va t e Lt d. , a n In d ia n C o . , d e c la r e d/ p a i d di v i de n d f or A Y 2 01 6 - 1 7. O n e o f t he s h a re h ol d e rs t o w h o m d i vi d e nd w a s t o b e pa i d w a s a N o n R e s id e n t ( T a x ITAs No.1136 to 1142/Del/2023 7 re s id e n t of F ra n c e ). Si m i l a r pl e a w a s r a i s e d i n t hat c a s e t h a t t he ra t e a t w h i c h t a x u nd e r 1 15 -O o f t h e A c t h a d t o b e p a i d c o ul d n o t b e m o re t h a n t he r a t e a t w h i c h d i vi de n d c o u ld b e t a xe d i n t he h an d s of t he N on R e s id e n t s h a r e h o l de r i n In di a u n d e r t h e D T A A be t w e en In d i a a n d Fr a nc e a s th e ra t e of t a x p r e s c r i b e d i n t he D T A A i s ge n e ral l y l e s s t h a n t he ra t e pr e s c r i be d i n s e c t i o n 1 1 5- O . O n n u a nc e d a n a l ys i s , the S p e c i a l b e n c h f o r m e d a v i e w t h a t d i vid e n d d e c l a re d b y a d o m e s t i c c o m pa n y t o a n on re s id e n t s h o u l d b e t a xe d a t t h e ra t e gi v e n u nd e r s ec t io n 11 5 - O a nd n ot t he be n e f i c i a l r a t e s g i ve n u n de r D T A A f or N o n R e s i de nt s un l e s s t he c on t ra c t i n g s t a t e t o w hi c h t h e t re a t y i nt e n ds t o e xt e n d th e t r e a ty pr o t e c t i o n to t h e d o m e s t i c c o m pa n y. It th u s o bs e r ved t h a t w h e re ve r t he C o n t ra c t i n g St a t e s t o a t a x t re a t y in t e nd t o e x t e nd t he t r e a t y p ro t e c t io n t o t he d om e s t i c c o m pa n y p a yi n g d i vi d e nd di s t r i bu t i on ta x, o nl y t he n , t he do m e s t i c c o m pa n y c a n c l a i m b e n e f it of t he D T A A , i f a n y. N o s u c h pr o t e c t i o n h a s b e e n s ho w n t o b e e xt e n de d i n t h e i nst a nt c a s e . 11 . T h e i s s u e is th u s s q ua r e l y c o ve r e d i n f a v ou r o f th e r e ve n ue a nd a ga i n s t t he a s s e s s e e . In t he i n s t a nt c a s e , t h e tr e at y b e n e f i t i s t hu s n ot a va i l a b le i n re l a t i on t o p ro v is i o n s of 1 1 5 - O of t h e A c t . T he p r o vis i on s o f s e c t i on 2 37 i s t h u s o f no a va i l . 12 . A s a re s ul t , a l l t he c a p t i on e d a p pe a l s of t h e As s e s s e e a re t hu s di s m is s e d. Order pronounced in the open Court on 19 July, 2024. Sd/- Sd/- [SUDHIR KUMAR] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: July, 2024 Prabhat