Bombay HC sets aside ITAT order in SET Satellite case - rules CBDT Circular is binding on revenue
Keeping our tradition of bringing you the judgements in the least possible time with detailed analysis, we are reporting this Bombay High Court order today which was delivered only on Friday.
IN a twist of fate, the Revenue has lost what it had won at the tribunal level last year. The High Court noted that the only contention advanced and which found favour with the Tribunal was that the advertisement revenue received by the assessee was also income liable to tax in India . The C.I.T. (A) relied upon Circular No.23 of 1969 . That Circular read with Article 7(1) would result in holding that advertisement revenue received by the appellant are not taxable in India as long as the treaty and the Circular stand.
And thus, the HC allowed the appeal and set aside the Tribunal's order. It further noted that merely because tax on income was paid for some assessment years, it would not estop the assessee from contending that its income is not liable to tax.