Held that according to the Double Taxation Avoidance Agreement between India and the U. S. A., the service rendered by the assessee did not specify the “make available” clause in article 12. For the AY. 2018-19 a similar adjustment, i. e., taxing a service receipt at 40 per cent. was levied by the Central Processing Centre, Bangalore in the case of assessee’s group companies of Singapore and the U. K., and the rectification applications were allowed by the Central Processing Centre. Further, under article 12 of the Agreement the income in question was not chargeable to tax. The addition had been made only due to wrong reporting of income by the assessee which could not be sustained. That the assessee submitted that the assessee was eligible to claim credit for tax deducted at source. The issue was to be set aside and remanded to the Central Processing Centre, Bangalore with a direction to grant eligible credit for tax deducted at source in accordance with law. (AY. 2018-19)
Heidrick and Struggles Inc. v. Dy. CIT (2022) 98 ITR 67 (SN) (Delhi)(Trib)
S. 154 : Rectification of mistake-Mistake apparent from the record-Non-Resident-Wrong reporting-Deduction of tax at source-Credit for tax deducted at source is to be allowable as eligible assessee-Matter remanded-DTAA-India-USA. [S. 143(1), Art. 12]