SOCIETE INTERNATIONALE DE TELECOMMUNICATION AERONAUTIQUES SC, MUMBAI V. DDIT (IT)-2(1), MUMBAI

CO 182/MUM/2007

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7679 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 1 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 26-09-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 11-09-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 22-08-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S E DASTUR
• Keywords: Reassessment proceedings
• Section: 234B

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES L, MUMBAI .. , ! '# $% , & !, ' BEFORE SHRI R.S.SYAL, AM AND SHRI AMIT SHUKLA, JM ./ ITA NO.4971/MUM/2005 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 1997-1998) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. PAN :AAFCS2907Q ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.68/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR :1997-1998) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.2141/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 1998-1999) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.279/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 1998-1999) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.2142/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 1999-2000) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ITA NO.4971/MUM/2005 & ORS. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION. 2 -.' ./ CO NO.280/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 1999-2000) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.2143/MUM/2006 ( &) &) &) &) * * * * / / / / ASSESSMENT YEAR : 2000-2001) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.281/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2000-2001) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.4972/MUM/2005 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2001-2002) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.69/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2001-2002) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.2144/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2002-2003) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ITA NO.4971/MUM/2005 & ORS. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION. 3 -.' ./ CO NO.282/MUM/2006 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2002-2003) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.1956/MUM/2007 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2003-2004) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.182/MUM/2007 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2003-2004) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.6483/MUM/2007 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2004-2005) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) -.' ./ CO NO.08/MUM/2008 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2004-2005) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ./ ITA NO.6111/MUM/2008 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2005-2006) THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. ( +, / // / APPELLANT) ) ) ) ) / VS. ( -.+,/ RESPONDENT) ITA NO.4971/MUM/2005 & ORS. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION. 4 -.' ./ CO NO.02/MUM/2010 ( &) * &) * &) * &) * / / / / ASSESSMENT YEAR : 2005-2006) M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION C/O.EXPRESS TOWER, 24 TH FLOOR NARIMAN POINT, MUMBAI 400 021. THE DY.DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. ( -.' / CROSS OBJECTOR) ) ) ) ) / VS. ( -.+,/ RESPONDENT) +, / // / 0 0 0 0 / REVENUE BY : SHRI MAHESH KUMAR (CIT-DR) -.+, / 0 / 0 / 0 / 0 / ASSESSEE BY : S/SHRI S.E.DASTUR & NITESH JOSHI ) / # / / / / DATE OF HEARING : 18.09.2012 12* / # / DATE OF PRONOUNCEMENT : 26.09.2012 !$ !$ !$ !$ / / / / O R D E R PER BENCH : THIS BATCH OF APPEALS BY THE REVENUE AND CROSS OBJE CTIONS BY THE ASSESSEE RELATE TO ASSESSMENT YEARS 1997-98, 19 98-99, 1999-2000, 2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-20 05 AND 2005- 2006. COMMON ISSUES HAVE BEEN RAISED IN ALL THESE A PPEALS. 2. BEFORE DEALING WITH THESE APPEALS, WE WILL LIKE TO MENTION THAT THE APPEAL BY THE REVENUE AND CROSS OBJECTION BY TH E ASSESSEE FOR ASSESSMENT YEAR 1996-97 CAME UP FOR HEARING ALONG W ITH THE PRESENT BATCH OF APPEALS FOR SUBSEQUENT YEARS. BOTH THE SI DES MADE ELABORATE SUBMISSIONS IN RESPECT OF THEIR RESPECTIVE APPEALS FOR ASSESSMENT YEAR 1996-97. ON THE CONCLUSION OF HEARING FOR SUCH APPE AL FOR ASSESSMENT YEAR 1996-97, IT WAS FAIRLY ADMITTED BY BOTH THE SI DES THAT THE FACTS AND CIRCUMSTANCES AND THE GROUNDS RAISED BY THE RES PECTIVE PARTIES IN THE APPEALS FOR LATER YEARS, PRESENTLY UNDER CONSID ERATION, WERE MUTATIS MUTANDIS SIMILAR TO A.Y. 1996-97. IN FACT, NO SEPARATE ITA NO.4971/MUM/2005 & ORS. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION. 5 ARGUMENT WAS ADVANCED EITHER ON BEHALF OF THE ASSES SEE OR THE REVENUE. 3. WE HAVE DISPOSED OFF THE APPEALS FOR THE ASSESSME NT YEAR 1996- 97 BY A SEPARATE ORDER, DRAWING THE FOLLOWING CONC LUSIONS:- (I) INITIATION OF REASSESSMENT PROCEEDINGS IS VALID . (II) MUTUALITY IS APPLICABLE IN RESPECT OF TRANSACT IONS OF THE ASSESSEE WITH ITS MEMBERS. THUS TO THAT EXTENT THE INCOME FROM THE TRANSACTIONS WITH THE MEMBERS IS EXEMPT. (III) INSOFAR AS THE TRANSACTIONS WITH NON-MEMBERS ARE CONCERNED, THE MUTUALITY IS LACKING, BUT LIMITED TO THAT EXTENT ALONE. (IV) THE ASSESSEE IS LIABLE TO TAX IN RESPECT OF IN COME FROM TRANSACTIONS WITH NON-MEMBERS. (V) INCOME FROM TRANSACTIONS WITH THE NON-MEMBERS A RE LIABLE TO BE COMPUTED UNDER RULE 10 OF INCOME-TAX RULES, 1 962 AT THE RATE OF 5% OF THE GROSS RECEIPTS FROM THE NON-MEMBE RS. (VI) INTEREST U/S 234B CANNOT BE CHARGED. ITA NO.4971/MUM/2005 & ORS. M/S.SOCIETE INTERNATIONAL DE TELECOMMUNICATION. 6 4. ALL THE GROUNDS RAISED BY THE REVENUE AS WELL A S THE ASSESSEE IN THEIR RESPECTIVE APPEALS FOR THE ASSESSMENT YEAR S UNDER CONSIDERATION INVOLVE SOME OR ALL OF THE ISSUES AS DISCUSSED FOR ASSESSMENT YEAR 1996-97, IN RESPECT OF WHICH THE C ONCLUSIONS DRAWN BY US HAVE BEEN REPRODUCED ABOVE. FOLLOWING THE SAM E CONCLUSIONS, WE APPROVE THE ORDERS PASSED BY THE LD. CIT(A) FOR ALL THE YEARS IN QUESTION. 5. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AN D THE CROSS OBJECTIONS BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THIS 26 TH DAY OF SEPTEMBER, 2012. !$ / 12* 3!)4 2 / 5 SD/- SD/- (AMIT SHUKLA) (R.S.SYAL) & ! & ! & ! & ! / JUDICIAL MEMBER ! ! ! ! / ACCOUNTANT MEMBER MUMBAI ; 3!) DATED : 26 TH SEPTEMBER, 2012. DEVDAS* !$ / -&#'6 76*# !$ / -&#'6 76*# !$ / -&#'6 76*# !$ / -&#'6 76*#/ COPY OF THE ORDER FORWARDED TO : 1. +, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. 8 () / THE CIT(A)-XXXI, MUMBAI. 4. 8 / CIT 5. 6;5 -&#&) , , / DR, ITAT, MUMBAI 6. 5< = / GUARD FILE. !$) !$) !$) !$) / BY ORDER, .6# -&# //TRUE COPY// > > > >/ // /? @ ? @ ? @ ? @ ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI