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Court affirm the ultimate conclusion of the CIT(A) in deleting the tax demand relatable to difference between 20% and the actual tax rate on which tax was deducted by the assessee in terms of the relevant DTAAs. As a consequence, Revenue fails in its appeals.

Shanti Prime Publication Pvt. Ltd.

Sec. 195 of Income Tax Act, 1961 - TDS - The petitioner had engaged the service of a law in Indonesia for acquiring an insurance business in Indonesia. Therefore, the petitioner filed an application under 195 of the Act, before the ITO for exemption from deducting tax on the payment to be made to the aforesaid foreign law firm for the service rendered by the said firm in Indonesia. The request of the petitioner was rejected . If the service utilized by the petitioner abroad was for preexisting business in Indonesia, the petitioner could have legitimately stated that the service provided was utilized for a business of profession carried out outside India or for the purpose of making or earning any income from any source from outside India. There is no source that is existing in Indonesia. In this case, there was a mere proposal for acquiring the insurance business in privately or Indonesian Insurance Policy. The service of the said law firm was sought for a range of service which are approval consultancy service. Thus, Writ petition dismissed. - SHRIRAM CAPITAL LIMITED V/s DCIT - [2020] 315 CTR 295 (MAD)