DCIT 14(3)(1), MUMBAI V. TEMASEK HOLDINGS ADVISORS INDIA P.LTD, MUMBAI

ITA 1198/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3518 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2010-2011
• Appeal Filed On: 27-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA CHAND
• Section: 143(3)

Judgement Text

ITA NO. 1198 / MUM /20 15 ASSESSMEN T Y EAR: 2010 - 11 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI K BENCH, MUMBAI [CORAM : PRAMOD KUMAR AM AND PAWAN SINGH JM] ITA NO. 1198 / MUM /20 15 AS SESSMENT Y EAR : 2010 - 11 DY. C OMMISSIONER OF INCOME TAX 14(3)(1) ........ .APPELLANT MUMBAI . VS. TEMASEK HOLDING S ADVISORS INDIA PVT. LTD. .......... . RESPONDENT 12/3, NORTH AVENUE, MAKER MAXCITY, BANDRA KURLA COMPLEX, B A NDRA EAST, MUMBAI. [PAN: A A CC M 4000 H ] APPEARANCES BY: NARENDRA CHAND , FOR THE APPELLANT PORUS KAKA/DIVESH CHAWLA , F OR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JANUARY 5 TH , 201 6 DATE OF PRONOUNCING THE ORDER : FEBRUARY 29 TH , 201 6 O R D E R PER PRAMOD KUMAR AM : 1. THIS APPEAL, FILED BY THE ASSESSING OFFICER, IS DIRECTED AGAINST THE DIRECTIONS ISSUED BY THE DISPUTE S RESOLUTION PANEL IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR 2010 - 11. 2. GRIEVANCE RAISED BY THE APPELLANT IS AS FOLLOWS : - 1. ON THE FACTS AND IN T HE CIRCUMSTANCES OF THE CASE AND IN LAW, T HE DISPUTE RESOLUTION PANEL ERRED IN DELETING THE ADDITION MADE BY THE AO U/S 40(A)(IA) OF THE ACT AMOUNTING TO RS.8,10,39,406/ - ON THE SAID PAYMENT TO T HE PARENT COMPANY ITA NO. 1198 / MUM /20 15 ASSESSMEN T Y EAR: 2010 - 11 PAGE 2 OF 3 SITUATED AT SINGAPORE PARTICULARLY WHEN THE ASSESSEE COMPANY HAS NOT DEDUCTED TAX U/S 195 OF THE INCOME TAX ACT ON SUCH PAYMENT. 3. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE PAYMENT OF RS.8,10,39,406/ - TO T E MASEK HOLDINGS PTE L TD., SINGAPORE WITHOUT ANY DEDUCTION AT SOURCE. WHILE THE ASSESSING OFFICER NOTED THAT THE PAYMENT IS ON ACCOUNT OF REIMBURSEMENT OF EXPENSES, AND THAT THE SAME ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE, BY TRIBUNAL S ORDERS FOR THE ASSESSMENT YEAR S 2007 - 08 AND 2008 - 09, HE PROCEEDED TO DISALLOW THE PAYMENT OF RS.8,10,39,406/ - AS TAX WAS NOT DEDUCTED AT SOURCE, AS REQUIRED BY SECTION 195, AND AS THE RELIEF GRANTED BY THE TRIBUNAL HAS BEEN CHALLENGED BEFORE HON BLE HIGH COURT. THE ASSESSEE RAISED AN OBJECTION, BEFORE THE DRP, AGAINST THIS DISALLOWANCE AS PROPOSED BY THE ASSESSING OFFICER. FOLLOWING THE STAND TAKEN BY THE TRIBUNAL, DRP DIRECTED THE ASSESSING OFFICER NOT TO MAKE THIS DISALLOWANCE. THE ASSESSING OFFICER IS AGGRIEVED AND IS IN APPEAL BEFORE U. 4. HAVING HEARD THE RIVAL SUBMISSIONS AND HAVING PERUSED THE MATERIAL ON RECORD, AND PARTICULARLY BEARING IN MIND THE FACT THAT THE ISSUE IS COVERED, IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEARS 2007 - 08 AND 2008 - 09 AND IN FAVOUR OF THE ASSESS EE, BY DECISIONS OF THE CO - ORDINATE BENCHES, WE ARE NOT INCLINED TO DISTURB THE RELIEF GRANTED BY THE DRP. WE HAVE NO REASONS TO TAKE ANY OTHER VIEW OF THE MATTER THAN THE VIEW SO TAKEN BY THE CO - ORDINATE BENCHES. ACCORDINGLY, WE HOLD THAT THE PAYMENTS W ERE IN THE NATURE OF REIMBURSEMENT OF EXPENSES NOT INVOLVING ANY TAX WITHHOLDING OBLIGATIONS, AND THE DRP IS JUSTIFIED IN GIVING THE IMPUGNED RELIEF. ITA NO. 1198 / MUM /20 15 ASSESSMEN T Y EAR: 2010 - 11 PAGE 3 OF 3 5. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY 29 TH DAY OF FEBRUA RY, 2016. SD/ - SD/ - PAWAN SINGH PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 29 TH DAY OF FEBRUARY , 2016 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3 ) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER DY./ ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI B ENCHES, MUMBAI