Karnataka High Court’s Judgement on Section 90 of the Income Tax Act: DIT vs Autodesk Asia Pvt Ltd

COURT: Karnataka High Court

CORAM: Alok Aradhe J, H. T. Narendra Prasad J

SECTION(S): 90, Article 12

GENRE: International Tax

COUNSEL: K. V. Aravind, T. Suryanarayana

DATE: September 15, 2020 (Date of pronouncement)

DATE: November 7, 2020 (Date of publication)

AY: 2006-07


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Interpretation of statutes & DTAAs: The substitution of a provision results in repeal of earlier provision and its replacement by new provision. When a new rule in place of an old rule is substituted, the old one is never intended to keep alive and the substitution has the effect of deleting the old rule and making the new rule operative. Though Notification dated 18.07.2005 (which substitutes paragraph 12 of Article 12 of the DTAA to provide for levy of tax on the royalties or fees for technical services at a rate not exceeding 10%) issued u/s 90 came into force with effect from 01.08.2005, it applies to the entire fiscal year.

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