ADIT INTL. TAXATION, DEHRADUN vs. M/S. PARADIGM GEOPHYSICAL PTY LTD.,, DEHRADUN

PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER

“2. Before the Tribunal, the principal contention of the revenue was that the matter of tax liability of the assessee was required to be sorted out in accordance with the Treaty inter se the country, to which the assessee belongs, and the Government of India. We think that, for the reasons rightly recorded in the judgment and order under appeal, the Tribunal has rejected the said contention and upheld the judgment of the appellate authority. We think that the Tribunal has correctly held that the Treaty will come into play only when the tax liability of the assessee under the domestic law is established. In the instant case, the appellate authority correctly. found that the domestic law fastened tax liability upon the assessee in view of Section 9( I )(vii)(b) of the Act. It, then, proceeded to consider Section 44BB of the Act and found that, since technical service was provided by the assessee, without having a permanent address in India, to an Indian Company for the purpose of exploration of oil, the tax liability of the assessee under the domestic law is leviable in terms of the provisions contained in Section 44BB of the Act and the law, as provided in Section 44BB, being such that there is no question of applying the provisions of the Treaty in order to give any further relief to the appellants, and, as such, the provisions of the Treaty do not apply in the matter of assessment of tax liability of the assessee. We have not been able to take a contrary view. “ and 2150/Del/12 A.Y. 2005-06 Paradigm Geophysical Ply Ltd., Dehradun 2.2. Respectfully following the same we uphold the order of the Ld.CIT(A) in both the appeals and dismiss both the appeals of the Revenue.

Order pronounced in the Open Court on 07th April, 2016.