The issue before the Tribunal was whether the AO ought to have excluded a sum of Rs 11,91, 18, 391 from total income chargeable to tax in the hands of assessee in India , as this amount represents aggregate of profits earned by assesses ’s braches in UAE and Qatar . The Tribunal held that the law laid down in CIT v. PVAL Kulandagan Chettiar ( 2004) 267 ITR 654 (SC) that once an income of an Indian assessee is taxable in the treaty partner source jurisdiction under a treaty provision, the same cannot be included in its total income taxable in India as well i.e. the residence jurisdiction, is no longer good law in view of s. 90(3) inserted w.e.f. 01.04.2004 read with Notification no. 91 of 2008 dated 28.08.2008. The substitution of s. 90 w.e.f. 01.10.2009 does not affect the validity of the said Notification. The mere amendment or substitution of a section does not affect the validity of notifications, circulars and instructions issued therein . Accordingly the appeal of the assessee is dismissed . ( ITA No. 155/Mum/2019, dt. 14.02.2020)(AY. 2014-15)
Tecnimont Pvt. Ltd. v. ACIT (Mum)(Trib), www.itatonline.org
S. 90 :Double taxation relief – Once an income of an Indian assessee is taxable in the treaty partner source jurisdiction under a treaty provision, the same cannot be included in its total income taxable in India as well i.e. the residence jurisdiction, is no longer good law in view of s. 90(3) inserted w.e.f. 01.04.2004-The mere amendment or substitution of a section does not affect the validity of notifications, circulars and instructions- Addition made by the AO is confirmed . .[ S. 90(3)144C ]