Navdurga Voyage Pvt. Ltd., Ahmedabad V. The Income Tax Officer ,Intl. Taxn.-II, Ahmedabad

ITA 221/AHD/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1371 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 29-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH POPHARE T HE
• Assessee Lawyers: P M MEHTA
• Keywords: Double taxation relief
• Section: 11

Judgement Text

ITA NOS .219 , 220 & 221 /AHD/201 6 ASSESSMEN T Y EAR S : 20 11 - 12, 2012 - 13 & 2013 - 14 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD I BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM AND S.S. GODARA JM] ITA NO S . 219, 220 & 221 / AHD/201 6 AS SESSMENT Y EAR S : 20 11 - 12, 2012 - 13 & 2013 - 14 NAVD U RGA VOYAGE PVT. LTD. .APPELLANT C - 51, SAMKEET - 2, OPP: CHANDAN PARTY PLOT, SA T ELLI T E, AHMEDABAD 380 015. [ PAN: AA CCN 9698 J ] VS. INCOME TAX OFFICER (INTL. TAXATION) - II, AHMEDABAD. ... . RESPONDENT APPEARANCES BY: P.M. MEHTA , FOR THE A PPELLANT ASHISH POPHARE , F OR T HE RE SPONDENT DATE OF CONCLUDING THE HEARING : JUNE 9 TH , 201 6 DATE OF PRONOUNCING THE ORDER : JUNE 16 TH , 201 6 O R D E R PER PRAMOD KUMAR AM : BY WAY OF TH ESE APPEAL S , THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE COMMON ORDER DA TED 03.12.2015 , PASSED BY THE LEARNED CIT(A) FOR ASSESSMENT YEARS 20 11 - 12, 2012 - 13 & 2013 - 14 . AS ALL THESE THREE APPEALS PERTAIN TO THE SAME ASSESSEE , ARISE OUT OF A COMMON SET OF FACTS AND WERE HEARD TOGETHER, AS A MATTER OF CONVENIENCE, WE ARE DISPOSING OF THESE APPEALS BY THIS CONSOLIDATED ORDER. 2. AS THE ASSESSEE HAS RAISED IDENTICAL GROUNDS IN ALL THESE THREE APPEALS, GROUNDS RAISED IN ITA NO.219/AHD/2016 ARE REPRODUCED AS UNDER : - ITA NOS .219 , 220 & 221 /AHD/201 6 ASSESSMEN T Y EAR S : 20 11 - 12, 2012 - 13 & 2013 - 14 PAGE 2 OF 3 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (A) HAS ERRED IN DISMISSING THE APPEAL WITHOUT ADJUDICATING THE GROUNDS ON MERITS THEREBY CONVENIENTLY IGNORING ALL THE FACTS AND EVIDENCES THAT WERE FORMING PART OF THE RECORDS BEFORE HIM. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (A) HAS ERRED BY CONFIRMING THE VIEWS OF THE LD. ASSESSING OFFICER IN HOLDING THAT THE REMITTANCES TO THE NON - RESIDENTS ATTRACTED T DS UNDER SECTION 195 OF THE INCOME - TAX ACT. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (A) HAS ERRED IN CO NCURRING WITH THE VIEW OF THE LD. ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT THE PAYMENTS MADE WERE REIMBURSEMENT IN NATURE AND DID NOT ENTAIL ANY SERVICE ELEMENT AND ACCORDINGLY NO TAXES OUGHT TO HAVE BEEN WITHHELD. 4. ON THE FACTS AND CIRCUMST ANCES OF THE CASE, THE LEARNED CIT (A) HAS ERRED IN CONCURRING WITH THE VIEW OF THE LD. ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT THE SERVICES PROVIDED BY SANGHI GLOBAL HOLDINGS LIMITED WERE NOT MADE AVAILABLE AND HENCE ARE NOT IN THE NATURE OF FEES FOR INCLUDED SER V ICES AS PE R ARTICLE 12(4) OF INDIA - CYPRUS DTAA. 3 . WHEN TH ESE APPEAL S W ERE CALLED OUT FOR HEARING, IT WAS NOTICED THAT NONE HAS APPEARED BEFORE THE LEARNED CIT(A) NOR FILED ANY WRITTEN SUBMISSIONS AND THAT THE MATTER HAS BEEN, THE REFORE, DECIDED EX - PARTE QUA THE ASSESSEE APPELLANT BY THE LEARNED CIT(A). IT WAS ALSO NOTED THAT THE LEARNED CIT(A) HAS DISMISSED THE APPEAL SUMMARILY, FOR WANT OF PROSECUTION, WITHOUT ADDRESSING HIMSELF TO THE MERITS. 4 . LEARNED COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE LEARNED CIT(A) HAS DECIDED THE MATTER WITHOUT APPRECIATING THE FACT THAT THERE WAS SUFFICIENT CAUSE FOR ALLEGED NON - COMPLIANCE WITH THE NOTICES OF HEARING ISSUED BY HIM DURING THE COURSE OF APPELLATE PROCEEDINGS . 5. LEARNED DEPART MENTAL REPRESENTATIVE DID NOT HAVE MUCH TO SAY ON THIS ASPECT OF THE MATTER BUT HE CONTENDED THAT AT BEST THE MATTER SHOULD BE REMITTED TO ITA NOS .219 , 220 & 221 /AHD/201 6 ASSESSMEN T Y EAR S : 20 11 - 12, 2012 - 13 & 2013 - 14 PAGE 3 OF 3 THE LEANED CIT(A) FOR ADJUDICATION ON MERITS RATHER THAN OUR TAKING A CALL ON MERITS OF THE CASE. 6 . IN VIEW OF THE F ACT THAT THE LEARNED CIT(A) HAS DISMISSED THE APPEALS SUMMARILY WITHOUT DEALING WITH MERITS OF THE CASE, THE IMPUGNED ORDER IS CLEARLY UNSUSTAINABLE IN LAW. EVEN WHILE DECIDING THE MATTER EX - PARTE QUA THE ASSESSEE, THE LE A RNED CIT( A) HAS TO DEAL WITH THE GRIEVANCES RAISED BY THE ASSESS E E ON MERITS AND BASE D ON MATERIAL ON RECORD. I N VIEW OF THE ABOVE DISCUSSIONS , WE DEEM IT FIT AND PROPER TO REMIT THE MATTER TO THE FILE OF LEARNED CIT(A) FOR ADJUDICATION DENOVO . WHILE DOING SO, LEARNED CIT(A) WILL GIVE A FRESH OPPORTUNITY OF HEARING TO THE ASSESSEE AND SHALL TAKE INTO ACCOUNT WRITTEN AND ORAL SUBMISSIONS AS THE ASSESSEE MAY LIKE TO MAKE AND DECIDE THE MATTER IN ACCORDANCE WITH LAW BY WAY OF A SPEAKING ORDER. WE ORDER ACCORDINGLY. 7 . IN THE RESULT, ALL T HE THREE APPEAL S ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT TODAY ON THE 16 TH DAY OF JUNE , 2016 SD/ - SD/ - S.S. GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 16 TH DAY OF JUNE, 2016 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD