COMMISSIONER OF INCOME TAX Vs. INFOSYS TECHNOLOGIES LTD.

JUDGEMENT

(1.) IN this appeal by the Revenue u/s. 260 -A of the Income Tax Act, 1961, the following substantial questions of law have been posed for our answer: - 1. Whether the Tribunal was correct in holding that the commissioner exercising jurisdiction under Section 263 of the Act by holding that the Assessing Officer should rework the credit in respect of Canadian and Thailand Tax claimed under Double Taxation Avoidance Agreement (DTAA) without specifying the error in the original order sought to be revised and how it was erroneous and prejudicial to the interest of the revenue.

(2.) WHETHER the Tribunal committed an error in failing to appreciate that in accordance with the DTAA Clause 23 entered into by the Indian Government with the Canadian Government as well as the Thailand Government the income which fall part of total turnover and the consequential TDS claimed, in Canada and Thailand cannot be allowed, in India when computing the total deduction.

(3.) THE order of the Commissioner on the face of it and undisputedly is beyond two years from the date of the assessment order which is dated 27.2.1997. However, the stand of the Revenue, and submission of Sri. Indrakumar, learned Senior Counsel appearing for the Revenue is that the assessing order was the subject -matter of an appeal and succeeded to some extent while giving effect to the directions of the Appellate Commissioner, the assessing authority had passed art order afresh on 31.3.1999, but with regard to the deduction permitted in respect of computation of tax liability of the assessee. under the Act and by giving relief in respect of that tax paid by the assessee in respect of the income earned in Canada and for which some amount, had been deducted at source etc. which amount had been indicated by the assessee and claimed relief for the proportionate amount, that amount had remained the same even after the remission order issued by the Appellate Commissioner and consequential order passed by the Appellate Authority on 31.3.1999.