Law:

Section:

Section 245R of the Income-tax Act, 1961 read with article 226 of the Constitution of India - Advance ruling - Procedure on receipt of application for - Whether Authority for Advance Ruling (AAR) has 'trappings of a Court' and, hence, it would qualify as a Tribunal within meaning of article 227 of Constitution and would be amenable to jurisdiction of High Court under article 226/227 of Constitution - Held, yes Section 90, read with section 9, of the Income-tax Act, 1961 and article 5 of the Double Taxation Avoidance Agreement between India and United Arab Emirates - Double taxation relief -Where agreement exists - Petitioner was a company of UAE - It was engaged in offering remittance services for transfer of monies from UAE to various places in India - In order to facilitate said purpose, it had opened liaison offices in India under a licence granted by RBI - For said purpose, separate contracts between NRI remitters and petitioner were executed in UAE, whereupon NRIs handed over their funds for remittance to petitioner at any of its centres/outlets/camps in UAE - Upon funds being collected, petitioner transmitted same to beneficiaries of NRI remitters in India either by telegraphic transfer through normal banking channel or by involving its liaison offices in India, which downloaded particulars of remittances through electronic media and then by printing cheques/drafts drawn on banks in India, couriered/ dispatched same to beneficiaries in India, in accordance with instructions of NRI remitters - Petitioner collected a one-time fee from remitters in UAE - On those facts, petitioner sought advance ruling on question whether any income accrued or would be deemed to accrue to it in India from activities carried out in India - AAR held that activities of liaison offices in India contributed directly or indirectly to earning of income by petitioner and, accordingly, income would be deemed to accrue or arise to petitioner in UAE from its business connections in India - Whether AAR proceeded on a wrong premise, inasmuch as it examined case from point of view of section 5(2)(b) and section 9(1) of Act, while it was required to look at provisions of DTAA for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492