Bharat Forge Ltd., V. Deputy Director of Income-tax,

ITA 1361/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7467 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-09-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 16-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR VIVEK AGGARWAL
• Keywords: Capital expenditure
• Section: 5(2)

Judgement Text

1 ] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1361/PUN/2015 / ASSESSMENT YEAR : 2013-14 BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036. PAN : AAACB8519L. . APPELLANT VS. DEPUTY DIRECTOR OF INCOME TAX, (IT)-1, B.O. BHAVAN, PARVATI, PUNE SATARA ROAD, PUNE 411 009. .RESPONDENT / APPELLANT BY : SHRI NIKHIL PATHAK / RESPONDENT BY : DR. VIVEK AGGARWAL / ORDER PER ANIL CHATURVEDI, AM: 1. THE APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-13, PUNE DT.17.08.2015 FOR THE ASSESSMENT YEAR 2013-14. / DATE OF HEARING : 14.09.2017 / DATE OF PRONOUNCEMENT: 14.09.2017 2 2. ASSESSEE HAD ISSUED ZERO COUPON FOREIGN EXCHANGE CURRENCY CONVERTIBLE BONDS (FCCBS) OF USD 39.90 MILLION TO FINANCE CAPITAL EXPENDITURE ON INDIA AND FOR OVERSEAS ACQU ISITION. ASSESSEE FILED AN APPLICATION U/S 195(2) OF THE ACT REQUESTIN G THE AO TO PASS THE ORDER DIRECTING IT EITHER NOT TO WITHHOLD TAX OR WITHHOLD APPROPRIATE PERCENTAGE OF TAX ON ITS REMITTANCES OF REDEMPTION PREMIUM ON FCCBS ISSUED BY IT. AO VIDE ORDER DT. 25.04.2013 PASSED U/S 195(2) OF THE ACT HELD THAT REDEMPT ION PREMIUM ON FCCBS IS TAXABLE U/S 5(2) R.W.S. 115AC OF THE ACT AND ACCORDINGLY ASSESSEE IS REQUIRED TO DEDUCT TAX AT SOURCE 196C @ 10% PLUS SURCHARGE OF 2.5% AND EDUCATION CESS OF 3% AFTER GROSSING UP THE AMOUNT AS PER PROVISIONS OF SEC.195 A OF THE ACT. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A) WHO VIDE ORDER DT.17.08.2015 (IN APPEAL NO.PN/CIT (A)-13/DDIT(IT)-I/37/2013-14) UPHELD THE ORD ER OF AO AND DISMISSED THE APPEAL OF ASSESSEE. AGGRIEVED BY TH E ORDER OF LD.CIT(A), ASSESSEE PREFERRED APPEAL BEFORE US. 3. ON THE DATE OF HEARING ASSESSEE VIDE LETTER DT.14.09. 2017 SUBMITTED THAT THE ASSESSEE WANTS TO WITHDRAW THE APP EAL. THE REVENUE DID NOT HAVE ANY OBJECTION IN ASSESSEES WITHDR AWING THE APPEAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN VIEW OF THE SUBMISSIONS MADE BY TH E 3 ASSESSEE BY ITS LETTER DT.14.09.2017 AND THE SUBMISSIONS M ADE BY LD.A.R, THE APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 14 TH DAY OF SEPTEMBER, 2017. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER PUNE; DATED : 14 TH SEPTEMBER, 2017. YAMINI # $%&' ('% / COPY OF THE ORDER FORWARDED TO : 1 . / THE APPELLANT 2. / THE RESPONDENT 3 . 4. 5 6. CIT(A)-13, PUNE, CIT-(IT-TP), PUNE. !'# 1 #$%,' $% , / DR, ITAT, B PUNE; ')*+/ GUARD FILE. / BY ORDER , // TRUE COPY / / TRUE COPY // - ./#0 $1 / SR. PRIVATE SECRETARY ' $% , / ITAT, PUNE.