The assessee had taken an engine on lease with a foreign company having no permanent establishment in India. It had deducted tax at rate of 10 percent on lease rental as per provision of DTAA between India and Netherland. On appeal the Tribunal held that provision of section 206AA cannot have overriding effect on payment made to non-resident, rate prescribed under DTAA are applicable hence no demand was payable by assessee. On appeal High Court affirmed the order of the Tribunal. SLP of Revenue dismissed (AY. 2013-14)
CIT (IT) v. Air India Ltd (2023)294 Taxman 163 /456 ITR 139(SC) Editorial : CIT v. Air India Ltd. (2022) 289 Taxman 492/ (2023) 456 ITR 117 (Delhi)(HC)
S. 206AA : Requirement to furnish Permanent Account Number-Non-Resident-Provision cannot have overriding effect on DTAA-Rates prescribed under DTAA are applicable-DTAA-India-Netherland-SLP of Revenue dismissed. [S. 2(37A)(iii), 4, 5, 9(1)(i), 90(2), 206AA(7), Art. 12(4)]