ADIT Intl. Taxation, Dehradun V. M/s. Paradigm Geophysical Pty Ltd., Dehradun

ITA 1181/DEL/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8306 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 01-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 07-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAN KANT GARG

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 1181 /DEL/201 2 AY: 200 5 - 06 AND ITA NO. 2150/DEL/2012 AY: 2005 - 06 ADIT INTERNATIONAL TAXATION VS. PARADIGM GEOPHYSICAL P.LTD. DEHRADUN C/O NANGIA & CO. 75/7, RAJPUR ROAD DEHRADUN PAN: AADCP 5999B (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAMAN KANT GARG, SR.D.R. RESPONDENT BY : SH. AMIT ARORA, C.A. ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE REVENUE AND ARE DIRECTED AGAINST IDENTICAL ORDERS OF THE LD.CIT(A) - II, DEHRADUN FOR THE A.Y. 2005 - 06 DATED 27.12.2011 AND 13.2.2011 RESPE CTIVELY. 2. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT THE FIRST APPELLATE AUTHORITY HAS APPLIED THE DECISION OF THE TRIBUNAL IN THE ASSESSEE S OWN CASE FOR THE EARLIER A.Y. 2003 - 04 IN ITA 4764/DEL/2005 ORDER DT. 27.6.2008 REPORTED IN 122 ITD 0 155 . ITA NOS. 1181 AND 2150/DEL/12 A.Y. 2005 - 06 PARADIGM GEOPHYSICAL PLY LTD., DEHRADUN 2 2 . 1 . THIS DECISION WAS UPHELD BY THE HON BLE HIGH COURT OF UTTARAKHAND IN ITA 47/2 008 JUDGEMENT DT. 11.7.2013 WHEREIN AT PARA 2 IT WAS HELD AS FOLLOWS. 2. BEFORE THE TRIBUNAL, THE PRINCIPAL CONTENTION OF THE REVENUE WAS THAT THE MATTER OF TAX LIABILITY O F THE ASSESSEE WAS REQUIRED TO BE SORTED OUT IN ACCORDANCE WITH THE TREATY INTER SE THE COUNTRY, TO WHICH THE ASSESSEE BELONGS, AND THE GOVERNMENT OF INDIA. WE THINK THAT, FOR THE REASONS RIGHTLY RECORDED IN THE JUDGMENT AND ORDER UNDER APPEAL, THE TRIBUNA L HAS REJECTED THE SAID CONTENTION AND UPHELD THE JUDGMENT OF THE APPELLATE AUTHORITY. WE THINK THAT THE TRIBUNAL HAS CORRECTLY HELD THAT THE TREATY WILL COME INTO PLAY ONLY WHEN THE TAX LIABILITY OF THE ASSESSEE UNDER THE DOMESTIC LAW IS ESTABLISHED. IN T HE INSTANT CASE, THE APPELLATE AUTHORITY CORRECTLY. FOUND THAT THE DOMESTIC LAW FASTENED TAX LIABILITY UPON THE ASSESSEE IN VIEW OF SECTION 9( I )(VII)(B) OF THE ACT. IT, THEN, PROCEEDED TO CONSIDER SECTION 44BB OF THE ACT AND FOUND THAT, SINCE TECHNICAL S ERVICE WAS PROVIDED BY THE ASSESSEE, WITHOUT HAVING A PERMANENT ADDRESS IN INDIA, TO AN INDIAN COMPANY FOR THE PURPOSE OF EXPLORATION OF OIL, THE TAX LIABILITY OF THE ASSESSEE UNDER THE DOMESTIC LAW IS LEVIABLE IN TERMS OF THE PROVISIONS CONTAINED IN SECTI ON 44BB OF THE ACT AND THE LAW, AS PROVIDED IN SECTION 44BB, BEING SUCH THAT THERE IS NO QUESTION OF APPLYING THE PROVISIONS OF THE TREATY IN ORDER TO GIVE ANY FURTHER RELIEF TO THE APPELLANTS, AND, AS SUCH, THE PROVISIONS OF THE TREATY DO NOT APPLY IN THE MATTER OF ASSESSMENT OF TAX LIABILITY OF THE ASSESSEE. WE HAVE NOT BEEN ABLE TO TAKE A CONTRARY VIEW. ITA NOS. 1181 AND 2150/DEL/12 A.Y. 2005 - 06 PARADIGM GEOPHYSICAL PLY LTD., DEHRADUN 3 2. 2 . RESPECTFULLY FOLLOWING THE SAME WE UPHOLD THE ORDER OF THE LD.CIT(A) IN BOTH THE APPEALS AND DISMISS BOTH THE APPEAL S OF THE REVENUE. 3 . IN THE RESULT BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH APRIL , 2016. SD/ - SD/ - (SUCHITRA KAMBLE) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 07 TH APRIL , 2016 MANGA COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR