Section 9, read with section 154, of the Income-tax Act, 1961 and articles 11 and 23 of DTAA between India and USA

IT/ILT : Question as to whether interest on refund received by assessee, a USA based company, was taxable under article 11 or article 23 of India-USA DTAA being a debatable one, was beyond scope of proceedings under section 154
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[2015] 53 taxmann.com 101 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'I'
Deputy Director of Income-tax (International Taxation) 4 (2), Mumbai
v.
Principal Life- International Emerging Markets Separate Account*
D. MANMOHAN, VICE-PRESIDENT
AND N.K. BILLAIYA, ACCOUNTANT MEMBER
IT APPEAL NO. 1866 (MUM.) OF 2013
[ASSESSMENT YEAR 2007-08]
NOVEMBER  11, 2014
Section 9, read with section 154, of the Income-tax Act, 1961 and articles 11 and 23 of DTAA between India and USA - Income - Deemed to accrue or arise in India (Interest) - Assessment year 2007-08 - Whether since question as to whether interest on refund received by assessee, a USA based company, was taxable under article 11 or article 23 of India - USA DTAA was a debatable issue, it was beyond scope of proceedings under section 154 - Held, yes [Para 6] [In favour of assessee]