Law:

Section:

I. Section 90 of the Income-tax Act, 1961 - Double taxation relief - Where agreement exists - Assessee-company earned dividend income from one Malaysian company and claimed that in light of Agreement for avoidance of double taxation of income and prevention of fiscal evasion of tax between Government of India and Government of Malaysia, dividend income would not liable to be taxed in India - Whether in view of decision of Madras High Court in CIT v. VR.S.R.M. Firm [1994] 208 ITR 400 dividend income was not liable to be taxed in hands of assessee in India under any provisions of Act - Held, yes II. Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of - Whether Tribunal has power to consider questions of law arising in an assessment proceeding not raised earlier - Held, yes FACTS-I The assessee which was an Indian company engaged in the business of investment and finance. The assessee earned dividend income in Malaysia from one Malaysian company. The assessee claimed that in the light of the Agreement for avoidance of double taxation of income and prevention of fiscal evasion of tax between the Government of India and the Government of Malaysia, dividend income would not liable to be taxed in India. The Assessing Officer, however, taxed the said income.The Tribunal held that the dividend income earned by the assessee from the Malaysian company was not liable to be taxed in the hands of assessee in India under any of the provisions of the Act. On appeal : HELD-I In view of the decision of the Madras High Court in CIT v. VR. S.R.M. Firm [1994] 208 ITR 400, the Tribunal was justified in holding that the dividend income earned by the assessee from the Malaysian company was not liable to be taxed in the hands of assessee in India under any of the provisions of the Act. [Para 14] FACTS-II In an appeal filed by the department before the Tribunal the assessee-company raised certain issue which was not raised by it either before the Assessing Officer or the Commissioner (Appeals). The Tribunal decided said issue in favour of the assessee. The department contended that the Tribunal was not justified in law in recording a finding on an issue which was…

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