Assessee a foreign company incorporated in Korea is engaged in manufacture of automobile and auto parts. During relevant year, assessee entered into guarantee agreement with its subsidiaries DISPL and KMSIPL to provide guarantees to foreign banks to provide loan to above subsidiary companies. Pursuant to guarantee agreements, assessee received a sum from its subsidiaries after deducting TDS at rate of 10 per cent-According to Assessing Officer, guarantee fee received from Indian Subsidiaries namely DISPL and KMSIPL had accrued and arisen in India as income from other sources.  Assessing Officer framed assessment order and brought abovementioned guarantee fee to tax. Tribunal held that  it is  a clear cut case of applicability of DTAA of Indo-Korea, whereby by virtue of article 23, other income had to be taxed in contracting state i.e., Korea and not India. Therefore, following article 23 of Indo-Korea DTAA which specifically provides that taxability of other income is only in contracting state and in instant case, contracting state is  Korea and not India, taxability under Income-tax Act is  not at all desirable. The addition made by Assessing Officer is  to be deleted. (AY. 2014-15, 2015-16)