GAC MARINE LLC,GURGAON V. .ITO, WARD 1(3)(2), INTERNATIONAL TAXATION, NEW DELHI

ITA 2018/DEL/2023

AI Insights

The case involves GAC Marine LLC, a company incorporated in the UAE, which appealed against the order of the Learned Commissioner of Income Tax (Appeals)-42, Delhi. The appeal arose from an assessment order by the Income Tax Officer under sections 147 and 144 of the Income Tax Act, 1961, for the Assessment Year 2012-13. The AO had assessed the total income of the assessee at Rs.10,06,14,234 based on TDS deductions from payments received from an Indian entity, without any regular return of income filed by the assessee. The CIT(A) dismissed the assessee's appeal, including the application for condonation of delay in filing the appeal. The Tribunal, after considering the non-compliance with notices and the procedural aspects, decided to restore the matter to the AO for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23611 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APPELLANT ASSESSEE; VIJAY B.VASANTA
• Assessee Lawyers: GAURAV SINGHAL
• Keywords: Condonation of delay; Period of limitation; TDS; FORM 26AS
• Section: 147; 148; 144; 142(1); 195

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’ NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 2018/Del/2023 (Assessment Year : 2012-13) GAC Marine LLC 1st Floor, AHIP Palms, Plot No.242 & 243, Phase-IV, Gurgaon Haryana – 122 015 PAN : AAECG 2882 R Vs. ITO, Ward – 1(3)(2), International Taxation, New Delhi – 110 002 (Appellant) (Respondent) Assessee by Shri Gaurav Singhal, Adv. and Ms. Mahima Jain, Adv. Respondent by Shri Vijay B. Vasanta, CIT-D.R. Date of Hearing 28/11/2024 Date of Pronouncement 18/12/2024 O R D E R PER VIMAL KUMAR, JM: 1. The appeal filed by assessee is against the order dated 15/05/2023 of Learned Commissioner of Income Tax (Appeals)-42, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] arising out of assessment order dated 19.12.2019 of the Income Tax Officer, Ward - Int. Tax - 1(3)(2) (hereinafter referred as ‘Ld. AO’) u/s 147 read with sections 144 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] for the Assessment Year 2012-13. -2- ITA No.2018/Del/2023 GAC Marine LLC vs. ITO 2. Brief facts of case are that appellant/assessee is a company incorporated in United Arab Emirates (UAE). The learned AO noticed from assessee’s Form 26AS for Financial Year 2011-12 that it had received amount of Rs.10,06,14,234/- from an Indian entity on which TDS was deducted under section 195 of the Act. No regular return of income had been filed by the assessee. Learned AO issued letters dated 06.03.2018 and 20.03.2019 asking assessee to provide reasons for non-filing of return of income. No response was filed. Learned AO recorded reasons under section 147 of the Act and issued notice under section 148 of the Act. No compliance was made by the assessee. Learned AO issued notice under section 142(1) of the Act on 08.11.2019 & 14.11.2019 seeking information. However, no compliance was made. Final show-cause notice was issued on 25.11.2019. Again no compliance was made. Learned AO finalized the assessment under section 144 r.w.s 147of the Act at a total income of Rs.10,06,14,234/-. 3. Appellant/assessee preferred appeal before the learned CIT(A) along with application and sought condonation of delay in filing of appeal. The learned CIT(A) vide order dated 15.05.2023 dismissed prayer for condonation of delay in filing appeal. 4. Being aggrieved, appellant/assessee preferred appeal before the Tribunal. -3- ITA No.2018/Del/2023 GAC Marine LLC vs. ITO 5. The learned Authorised Representative for appellant/assessee submitted that learned CIT(A) erred in rejecting the application for condonation of delay in filing appeal and without affording any opportunity to the appellant. Learned CIT(A) erred in concluding without adjudicating examination of the relevant facts and legal precedents, that the appellant is a tax resident of UAE and the activities carried out by the appellant are not taxable in India as per the Double Taxation Avoidance Agreement (‘DTAA’) between India and UAE read with section 90(2) of the Act. The learned CIT(A) grossly erred by considering total receipts of appellant as Rs.10,06,14,234/- whereas, the actual receipts of the appellant were Rs.5,03,07,117/- which is duly apparent from Form 26AS. The appellant/assessee undertakes to appear before Departmental Authorities in case, the case is sent back to the learned AO. 6. Learned Authorised Representative for the department of Revenue submitted that appellant/assessee had failed to comply with several notices issued by learned AO. The appeal was filed after expiry for period of limitation. 7. From examination of record in light of aforesaid arrival contentions, it is crystal clear that appellant/assessee failed to comply with several notices issued by the learned AO. Learned AO had finalized assessment under section 144 read with section 147 of the Act in absence of assistance by the appellant/assessee. Learned CIT(A) dismissed the application for condonation of delay -4- ITA No.2018/Del/2023 GAC Marine LLC vs. ITO and appeal in absence of appellant/assessee. Appellant/assessee has prayed that the matter be restored to the file of learned AO. In view of the above material facts, in interest of justice it is considered expedient to restore the matter to the file of the learned AO for fresh decision in accordance with law. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this day 18th December, 2024 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18/12/2024 Pr i ti Y adav, S r. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "