LINKLATERS SINGAPORE PTE. LTD.(FORMERLY KNOWN AS LINKLATERS ALLEN & GLEDHILL PTE. LTD.), MUMBAI V. DCIT (IT) 3(1)(2), MUMBAI

ITA 1642/MUM/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2779 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: L
• Next Hearing Date: 20-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 19-03-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S E DASTUR AW SHRI NIRAJ SHETH
• Keywords: Double taxation relief
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI N.K PRADHAN , ACCOUNTANT MEMBER ITA NO. 1642 / MUM/2015 ( ASSESSMENT YEAR : 20 11 12 ) LINKLATERS SINGAPORE PTE. LTD. (FORMERLY KNOWN AS LINKLATERS ALLEN & GLEDHILL PTE. LTD.) C/O DELOITTE HASKINS & SELLS LLP TOWER 3, 27 32 FLOOR INDIABULLS FINANCE CENTRE ELPHINSTONE MILL COMPOUND SENAPATI BAPAT MARG, ELPHINSTONE (W) MUMBAI 400 013 PAN AABCL5295L . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX (I.T) CIRCLE 3(1)(2) , MUMBAI . RESPONDENT ASSESSEE BY : SHRI S . E . DASTUR A/W SHRI NIRAJ SHETH R EVENUE BY : SHRI SAMUEL DARSE DATE OF HEARING 04 .0 6 .2018 DATE OF ORDER 29.08.2018 O R D E R PER SAKTIJIT DEY, J.M. AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE CHALLENGING THE ASSESSMENT ORDER DATED 7 TH JANUARY 2015 , PASSED UNDER SECTION 143(3) R/W 144C(1 3 ) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) FOR THE ASSESSMENT YEAR 20 11 12 IN PURSUANCE TO THE DIRECTIONS OF THE DISPUTE RESOLUTION PANEL (DRP). 2 LINKLATERS SINGAPORE PTE. LTD. 2 . GROUNDS NO.1, 2 AND 8 ARE GENERAL IN NATURE. HENCE, DO NOT REQUIRE ADJUDICATION. 3 . GROUND NO.7, BEING PREMATURE AT THIS STAGE , DOES NOT REQUIRE ADJUDICATION. 4 . IN GROUNDS NO.3 AND 4, ASSESSEE HAS RAISED THE ISSUE OF TAXABILITY OF IN COME DERIVED FROM RENDERING OF LEGAL SERVICES AS FEES FOR TECHNICAL SERVICES UNDER SECTION 9(1)(VII) OF THE ACT AS WELL AS DENIAL OF BENEFIT UNDER INDIA SINGAPORE DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) . 5 . THESE TWO GROUNDS ARE IDENTICAL TO GROUNDS NO.5 AND 7 OF ITA NO. 1540/MUM./2016, IN CASE OF ANOTHER GROUP CONCERN VIZ; LINKLATERS LLP, DISPOSE OFF BY US BY A SEPARATE ORDER OF EVEN DATE. AT THE TIME OF HEARING, THE LEARNED COUNSELS APPEARING FOR RIVAL PARTIES HAVE AGREED BEFORE US THAT THE RELEVANT PROV ISIONS OF INDIA SINGAPORE DTAA GOVERNING THE ISSUE IN DISPUTE ARE PARI MAT ERIA TO PROVISIONS UNDER INDIA UK DTAA. WHILE DECIDING IDENTICAL NATURE OF DISPUTE IN CASE OF LINKLATERS LLP (SUPRA), WE HAVE HELD THAT THE INCOME RECEIVED BY THE ASSESSEE FOR THE SE RVICES RENDERED DO NOT COME WITHIN THE PURVIEW OF FEES FOR TECHNICAL SERVICES UNDER ARTICLE 13 OF THE INDIA U .K. DTAA. FACTS BEING IDENTICAL. FOLLOWING OUR DECISION THEREIN, WE HOLD THAT THE INCOME RECEIVED BY THE ASSESSEE FOR RENDERING SERVICES IS NOT TAX ABLE 3 LINKLATERS SINGAPORE PTE. LTD. AS FEES FOR TECHNICAL SERVICES UNDER ARTICLE 12 OF INDIA SINGAPORE DTAA. ACCORDINGLY, WE DELETE THE ADDITION MADE BY THE ASSESSING OFFICER. IN VIEW OF THE ABOVE, GROUND NO.4 IS ALLOWED AND GROUND NO.3 HAVING BE COME INFRUCTUOUS IS DISMISSED. 6 . GROUND NO.5, RELATES TO DISALLOWANCE OF REIMBURSEMENT OF EXPENDITURE. 7 . THIS GROUND IS IDENTICAL TO GROUND NO.10 OF ITA NO.1540/MUM./ 2016, IN CASE OF LINKLATERS LLP (SUPRA) . FOLLOWING OUR DECISION THEREIN, WE DELETE THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. GROUND RAISED IS ALLOWED. 8 . IN G ROUND NO.6, ASSESSEE HAS CHALLENGED LEVY OF INTEREST UNDER SECTION 234B OF THE ACT. 9 . THIS GROUND IS IDENTICAL TO GROUND NO.12 OF ITA NO.1540/MUM./ 2016 IN CASE OF LINKLATERS LLP (SUPRA) . FOLLOWING OUR DECISION THEREIN, WE ALLOW THE G ROUND RAISED . 10 . IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.08.2018 SD/ - N.K. PRADHAN ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 29.08.2018 4 LINKLATERS SINGAPORE PTE. LTD. COPY OF THE ORDER FORWARDED TO : ( 1 ) THE ASSESSEE; ( 2 ) THE REVENUE; ( 3 ) THE CIT(A); ( 4 ) THE CIT, MUMBAI CITY CONCERNED; ( 5 ) THE DR, ITAT, MUMBAI; ( 6 ) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (SR. PRIVATE SECRETARY) ITAT, MUMBAI