ADOBE SYSTEMS SOFTWARE IRELAND LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX

Parties Involved

Facts Summary

The assessee, ADOBE SYSTEMS SOFTWARE IRELAND LIMITED, filed appeals for the assessment years 2018-19 and 2019-20 against the order of the Assessing Officer (AO). The Tribunal had initially decided the appeals on 28.02.2023 but did not adjudicate on grounds 3.1 and 4. Subsequently, the Tribunal recalled its order dated 28.02.2023 for the limited purpose of adjudicating on grounds 3.1 and 4. The assessee argued that the AO had incorrectly levied tax on interest on the income-tax refund at 40% instead of applying the beneficial tax rate of 10% as per the India-Ireland Double Taxation Avoidance Agreement (DTAA). The assessee also claimed that the AO had not allowed credit of taxes deducted at source (TDS) amounting to INR 18,73,999/-.…

Legal Issues

• 1. Whether the assessee is eligible for the beneficial rate of tax @10% under Article 11 of the India-Ireland DTAA on interest on Income Tax refund received during the period relevant to the assessment year under appeal.
• 2. Whether the AO erred in not allowing credit of taxes deducted at source (TDS) amounting to Rs.18,73,999/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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