DCIT, New Delhi V. M/s. CBRE (Pte) Ltd., Singapore

ITA 1903/DEL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3094 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Double taxation relief

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , DELHI BENCH B , NEW DELHI BEFORE S H RI N. K. BILLAIYA , ACCOUNTANT MEMBER , AND MS . SUCHITRA KAMBLE , JUDICIAL MEMBER ITA NO. 1903 /DEL/201 5 ASSESSMENT YEAR: 20 1 0 - 1 1 THE D.C . I . T . VS. CIRCLE 1(2)(1) NEW DELHI CBRE P. LTD 6, BATTERY ROAD 32/01, SINGAPORE PAN NO. AA DCC 6623 K (APPELLANT) (RESPONDENT) APPELLANT BY : MS. ASHIMA NEB, SR. DR RESPONDENT BY : SHRI RISHAB MALHOTRA DATE OF HEARING: 2 7 / 0 2 /2 0 1 9 DATE OF PRONOUNCEMENT: 28 / 0 2 /201 9 ORDER PER N. K. BILLAIYA, A CCOUNTANT M EMBER : TH IS APPEAL BY THE R EVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) 42 , NEW DELHI DATED 1 5 .0 1 .20 1 5 PERTAINING TO A.Y 20 1 0 - 1 1 . 2 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE CIT(A) ERRED IN HOLDING THAT : THE REFERRAL FEES RECEIVED FROM CBRE INDIA WAS IN THE N ATURE OF COMMISSION, AS THE CASE OF THE ASSESSEE FALLS UNDER ARTICLE 12(4)(A) OF DTAA AND THE CONSIDERATION RECEIVED WAS FOR RENDERING OF REFERRAL SERVICES WHICH WERE ANCILLARY AND SUBSIDIARY TO THE ENJOYMENTS OF CONFIDENTIAL COMMERCIAL INFORMATION AS SUCH IN THE NATURE OF ROYALTY/FTS. 3. THE ASSESSING OFFICER COMPUTED THE TAXABLE INCOME AND THE INCOME TAX AS UNDER: RETURNED INCOME : NIL ADD : ROYALTY INCOME TERMED AS REFERRAL FEES BY THE ASSESSEE AS DISCUSSED ABOVE. : RS. 1,08,13,630/ - TOTAL TAXABLE INCOME : RS. 1 , 08 , 13 , 630 / - TAX ON ABOVE 15% OF GROSS BASIS : RS. 16,22,045/ - 4. A PERUSAL OF THE ABOVE SHOWS THAT THE TOTAL TAX INVOLVED IN THE PRESENT APPEAL IS RS. 16.22 LAKHS , WHICH IS LESS THAN RS. 20 LAKHS. THIS APPEAL BY THE REVENUE HAS TO BE DISMISSED IN THE LIGHT OF THE CBDT 3 CIRCULAR NO. 3/2018 DATED 11.07.2018 BY WHICH THE BOARD HAS REVISED THE MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT AND THE MONETARY LIMIT HAS BEEN FIXED AT RS. 20 LAKHS. THE BOARD AT CLAUSE 13 OF THE SAID CIRCULAR HAS CLARIFIED AS UNDER: THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES TO BE FILED HENCEFORTH IN SUPREME COURT/HIGH COURT/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPE ALS/CROSS OBJECTIONS/ REFERENCES. THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. IN THE LIGHT OF THE AFORESAID CBDT CIRCULAR, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 5 . IN THE RESULT, THE APPEA L OF THE REVENUE IN ITA NO. 1903 /DEL/201 5 IS DISMISSED. ORDER PRONOU NCED IN THE OPEN COURT ON 28 .02.2019. SD/ - SD/ - ( SUCHITRA KAMBLE ) ( N. K. BILLAIYA ) JUDICIAL MEMBER A CCOUNTANT M E MBER DATE: 28 . 0 2 .201 9 VL 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR, ITAT ASSISTANT REGISTRAR ITAT , NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR OR DER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER