COMMISSIONER OF INCOME-TAX Vs. ARTHUSA OFFSHORE COMPANY

JUDGEMENT

(1.) THIS Appeal, preferred under Section 260-A of the Income Tax Act, 1961, is directed against the judgment and order dated 26th February 2006 / 7th April 2006, passed by the Income Tax Appellate Tribunal, Delhi Bench 'd', New Delhi (hereinafter referred as ITAT), in Income Tax Appeal No. 1338 / Del / 2002, for the Assessment Year 1994-95, whereby the appeal of the Revenue, is dismissed.

(2.) HEARD learned counsel for the parties.

(3.) THE substantial question of law involved in this Appeal, is as under: whether, Income Tax Appellate Tribunal has erred in law in holding that word'tax' does not include "surcharge" for the purposes of Clause (2) of Article 14 of the Double Taxation Avoidance Agreement with United States of America, and in upholding the decision of the Commissioner of Income-tax (Appeals), reducing the tax rate applicable to assessee NRC (respondent) at 60 per cent instead of 65 per cent applied by the Assessing Officer?