{"id":65501,"date":"2026-11-09T10:47:14","date_gmt":"2026-11-09T05:17:14","guid":{"rendered":"https:\/\/itatonline.org\/digest\/foseco-india-ltd-company-v-asst-cit-2026-488-itr-213-185-taxmann-com-1015-bomhc\/"},"modified":"2026-11-09T10:47:14","modified_gmt":"2026-11-09T05:17:14","slug":"foseco-india-ltd-company-v-asst-cit-2026-488-itr-213-185-taxmann-com-1015-bomhc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/foseco-india-ltd-company-v-asst-cit-2026-488-itr-213-185-taxmann-com-1015-bomhc\/","title":{"rendered":"Foseco India Ltd. Company v. Asst. CIT (2026) 488 ITR 213 \/ 185 taxmann.com 1015 (Bom)(HC)"},"content":{"rendered":"<p>Assessee-company distributed dividend to its UK-resident shareholders and paid DDT at 16.994 per cent under section 115-O. It claimed that under article 11 of India-UK DTAA, dividend to UK-resident beneficial owners was taxable at 15 per cent and sought refund of excess\u00a0 Revenue rejected refund holding that DDT under section 115-O was an additional income-tax on domestic company, that article 11 of DTAA dealt with taxation of dividend income and not distribution of profits, and that once DDT was paid, dividend was exempt in shareholders\u2019 hands under section 10(34); hence DTAA provisions were inapplicable to DDT and no refund was due\u00a0 Tribunal dismissed assessee\u2019s appeals for assessment years 2014-15 to 2020-21, following special bench view that DDT under section 115-O was an additional income-tax on distributing company and not governed by DTAA rates applicable to shareholders\u2019 dividend income. On appeal to the High Court, it was noted that there was a cleavage of opinion between Division Benches of the High Court on whether DDT under section 115-O was an additional income tax on a distributing domestic company and therefore not governed by the India-UK DTAA rate, or whether it was, in substance, a tax on dividend income of non-resident shareholders so that the beneficial rate under Article 11 of India-UK DTAA applied. The matter was referred to the Larger Bench. <strong>\u00a0<\/strong><strong>\u00a0<\/strong>Colorcon Asia Pvt. Ltd. v. Jt. CIT, (2026) 486 ITR 476 (Bom)(HC)\u00a0 made observations which appear to be contrary to the view taken by the court in Godrej and Boyce Mfg. Co. Ltd. v. Dy. CIT, (2010) 328 ITR 81 (Bom)(HC)\u00a0 as confirmed by the Supreme Court. (AY. 2014-15 to 2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 115-O : Domestic companies-Tax on distributed profits-Refund of Dividend Distribution Tax (DDT) paid in excess of DTAA rate-Revenue rejected claim on the ground that DDT is an additional tax on a company not governed by India-UK DTAA, and there existed conflicting High Court decisions on whether DDT is a tax on the company or, in substance, on shareholders\u2019 dividend income attracting DTAA benefit; the matter was required to be referred to a larger bench for resolution-DTAA-India-United Kingdom [S.10(34), 237, Art. 3(1)(c), 11, 24(1)(b)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65501","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-h2t","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65501"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65501\/revisions"}],"predecessor-version":[{"id":65502,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65501\/revisions\/65502"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}