Tribunal held that where the AO had made due enquiries with regard to receipts of assessee from services rendered outside India and where receipts were not taxable in India under article 15 of DTAA between India and USA, exercise of jurisdiction under S. 263 was not justified. Tribunal also observed that, decision in Gabriel India (203 ITR 108) which clearly lays down that u/s 263 of the Act, there cannot be any substitution of the AO’s judgment by judgment of CIT. Accordingly the order of CIT was quashed.
Pricewaterhouse Coopers LLP USA v. CIT (IT) (2018) 165 DTR 41 / 192 TTJ 976 (Kol.)(Trib.)
S. 263 : Commissioner – Revision of orders prejudicial to revenue-Income deemed to accrue or arise in India – Where the AO had made due enquiries with regard to receipts of assessee from services rendered outside India and where receipts were not taxable in India under article 15 of DTAA between India and USA, exercise of jurisdiction under section 263 was not justified- DTAA- India -USA [ S.9(1)(i), Art .15 ]