M/s. Oman &UAE Exchange Centre, Ernakulam V. DY.DIT, Cochin

ITA 13/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64711 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 06-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 13-01-2011
• Court: TRIBUNAL
• Department Lawyers: VANI RAJ
• Assessee Lawyers: VIVEK C GOVIND

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A. NOS. 12, 13 & 14/COCH/2011 ASSESSMENT YEAR-2006-07 1. UAE EXCHANGE CENTRE WLL, KUWAIT, 3 RD FLOOR, HOTEL AIRLINES BUILDING, M.G. ROAD, KOCHI-682 011. [PAN:AAACU 7143F] 2. OMAN & UAE EXCHANGE CENTRE & CO., LLC, 3 RD FLOOR, HOTEL AIRLINES BUILDING, M.G. ROAD, KOCHI-682 011. [PAN: AAACO 7018D] 3. UAE EXCHANGE CENTRE LLC ABU DHABI, 2 ND FLOOR, KRISHNA HOSPITAL BUILDING, OPP. MAHARAJAS COLLEGE, KOCHI-682 011. [PAN: AAACU 4555D] VS. DY. DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION), KOCHI. (ASSESSEE -APPELLANT) (REVENUE-R ESPONDENT) ASSESSEE BY SHRI VIVEK C. GOVIND, CA REVENUE BY SMT. VANI RAJ, JR. DR DATE OF HEARING 06/08/2012 DATE OF PRONOUNCEMENT 10/08/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THESE APPEALS FILED BY THE RESPECTIVE ASSESSEE S MENTIONED ABOVE ARE DIRECTED AGAINST THE ORDERS PASSED BY THE LD. CIT(A)-III, KO CHI IN THEIR RESPECTIVE HANDS FOR THE ASSESSMENT YEAR 2006-07. SINCE THE SOLITARY ISSUE URGED IN THESE THREE APPEALS ARE I.T.A. NOS.12,13 & 14 /COCH/2011 2 IDENTICAL IN NATURE, THEY WERE HEARD TOGETHER AND A RE BEING DISPOSED OF BY THIS COMMON ORDER. 2. THE SOLITARY ISSUE AGITATED IN THESE APPEALS IS WHETHER THE LD. CIT(A) IS JUSTIFIED IN HOLDING THAT THE GROSS TOTAL INCOME IN THE HANDS OF THE ASSESSES IS TO BE COMPUTED AT THE RATE OF 110% OF THE EXPENSES INCURRED BY THESE ASSESSEES. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. THE ASSESSEE, M/S. UAE EXCHANGE WLL, KUWAIT IS A LIMITED LIABILITY COMPANY INCORPORATED IN KUWAIT. THE ASSESSEE, M/S.OMAN & UAE EXCHANGE CENTRE & CO. LLC IS A LIMITED LIABILITY COMPANY INCORPORATED IN THE SULTANATE OF OMAN. THE THIRD A SSESSEE, M/S. UAE EXCHANGE CENTRE LLC ABU DHABI IS A LIMITED LIABILITY COMPANY HAVING HEADQUARTERS AT ABU DHABI. THESE ASSESSEES ARE CARRYING ON THE BUSINESS OF PURCHASE AND SALE OF FOREIGN CURRENCIES AND TRAVELLERS CHEQUES, HANDLING OF REMITTANCES ETC. THE ASSESSEES HAVE SET UP LIAISON OFFICES IN INDIA MAINLY TO ENABLE REMITTANCES INTO INDIA ON BEHALF OF THE PEOPLE WORKING ABROAD. THE ASSESSING OFFICER TOOK THE VIEW THAT A PORTION OF INCOME EARNED BY THE ASSESSEE SHOULD BE ATTRIBUTABLE TO THE OPERATIONS C ARRIED ON IN INDIA. ACCORDINGLY, THE ASSESSING OFFICER ESTIMATED THE INCOME ATTRIBUTABLE TO THE INDIAN OPERATIONS AT 30% OF THE TOTAL COMMISSION EARNED OUT OF THE REMITTANCES MADE THROUGH THEIR RESPECTIVE INDIAN OFFICES. THE ASSESSES CHALLENGED THE ASSESSM ENT ORDERS PASSED IN THEIR RESPECTIVE HANDS BY FILING APPEAL BEFORE THE LD. CI T(A). THE FIRST APPELLATE AUTHORITY, BY FOLLOWING THE DECISION OF THE COCHIN BENCH OF TH E HONBLE ITAT RENDERED IN THE ASSESSEES OWN CASE FOR EARLIER ASSESSMENT YEAR, DI RECTED THE ASSESSING OFFICER TO ADOPT 110% OF THE EXPENSES AS THE GROSS TOTAL INCOME OF T HE ASSESSEES. AGGRIEVED BY THE ORDERS OF THE LD. CIT(A), THE ASSESSES ARE IN APPEA L BEFORE US IN ALL THE CASES. 4. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED A COPY OF THE ORDER DATED 25-05-2012 PASSED BY THIS BENCH IN THE HANDS OF M/S. OMAN & UAE EXCHANGE CENTRE & CO. LLC, KOCHI FOR THE ASSESSMENT YEAR 2002-03 TO 2005-06. WE NOTICE FROM THAT ORDER THAT THE TRIBUNAL, BY FOLLOW ING THE ORDER DATED 30-03-2012 PASSED BY THE CO-ORDINATE BENCH IN THE ASSESSEES O WN CASE FOR THE EARLIER YEARS, HAS I.T.A. NOS.12,13 & 14 /COCH/2011 3 UPHELD THE DECISION OF THE LD. CIT(A) IN DIRECTING THE ASSESSING OFFICER TO ADOPT THE GROSS TOTAL INCOME AT 110% OF THE EXPENSES INCURRED BY THE ASSESSEE IN INDIA. THE LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE FACTS A ND CIRCUMSTANCES OF THE ISSUE UNDER CONSIDERATION IN THESE APPEALS IS IDENTICAL WITH TH E ONE DECIDED BY THE TRIBUNAL IN THE EARLIER YEARS. 5. THE LD. DR ALSO SUBMITTED THAT THERE IS NO CH ANGE IN THE FACTS AND CIRCUMSTANCES OF THE ISSUE UNDER CONSIDERATION IN THE APPEALS. 6. WE NOTICE THAT THE LD. CIT(A) HAS FOLLOWED THE D ECISION OF THE TRIBUNAL RENDERED IN THE ASSESSEES OWN CASE FOR THE EARLIER YEARS UN DER IDENTICAL SET OF FACTS AND CIRCUMSTANCES, WHICH WAS ALSO FOLLOWED BY THE TRIBU NAL IN SUBSEQUENT YEARS ALSO. HENCE WE DO NOT FIND ANY REASON TO INTERFERE WITH H IS DECISION IN THE APPEALS. 7. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE DISMISSED. PRONOUNCED ACCORDINGLY O N 10-08-2012 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 10TH AUGUST, 2012 GJ COPY TO: 1. 1. UAE EXCHANGE CENTRE WLL, KUWAIT, 3 RD FLOOR, HOTEL AIRLINES BUILDING, M.G. ROAD, KOCHI-682 011. 2. OMAN & UAE EXCHANGE CENTRE & CO., LLC, 3 RD FLOOR, HOTEL AIRLINES BUILDING, M.G. ROAD, KOCHI-682 011. 3. UAE EXCHANGE CENTRE LLC ABU DHABI, 2 ND FLOOR, KRISHNA HOSPITAL BUILDING, OPP. MAHARAJAS C OLLEGE, KOCHI-682 011. 4.THE DEPUTY COMMISSIONER OF INCOME-TAX (INTERNATIO NAL TAXATION), KOCHI. I.T.A. NOS.12,13 & 14 /COCH/2011 4 5.THE COMMISSIONER OF INCOME-TAX(APPEALS)-III, KOCH I. 6.THE COMMISSIONER OF INCOME-TAX, KOCHI 7. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 8. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T, COCHIN