SPRINT COMMUNICATIONS COMPANY LP, MUMBAI V. ACIT (INTERNATIONAL TAXATION) - 4(2)(2), MUMBAI

ITA 2319/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0096 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 234B

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -GBENCH MUMBAI , , BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AND AMARJIT SINGH,JUDICIAL MEMBER ./I.T.A./2319/MUM/2016, / ASSESSMENT YEAR: 2009-10 M/S. SPRINT COMMUNICATIONS COMPANY LP C/O. SRBC & ASSOCIATES LLP 14TH FLOOR, THE RUBY, 29 SENAPATI BAPAT MARG, DADAR (W),MUMBAI-400 028. PAN:AAYFS 1407 P VS. ACIT (INTL. TAXATION)-4(2)(2) ROOM NO.119, 1ST FLOOR, SCINDIA HOUSE, BALLARD ESTATE, N.M. ROAD, MUMBAI-400 038. ( /APPELLANT ) ( / RESPONDENT) / REVENUE BY: SHRI V. VIDYADHAR-DR /ASSESSEE BY: SHRI HARSH M . KAPADIA / DATE OF HEARING: 11/12/2017 / DATE OF PRONOUNCEMENT: 01.03.2018 , / PER RAJENDRA, AM - CHALLENGING THE ORDER DATED 23/12/2015 OF THE CIT (A)- 55, MUMBAI,THE ASSESSEE HAS FILED PRESENT APPEAL.THE ASSESSEE IS ENGAGED IN THE BUSIN ESS OF PROVIDING TELECOMMUNICATION SERVICES. IT FILED ITS RETURN OF INCOME ON 25/03/20 11 DECLARING NIL INCOME.THE ASSESSING OFFICER(AO)COMPLETED THE ASSESSMENT ON, 20/12/2011, DETERMINING ITS INCOME AT RS. 8.29 CRORES U/S.143(3) OF THE ACT. BEFORE US,THE AUTHORISED REPRESENTATIVE(AR)STATED T HAT THE ASSESSEE WAS INTERESTED IN PRESSING GROUND NO.12 ONLY.HENCE,WE DISMISS ALL OTH ER GROUNDS AS NOT PRESSED. 2. GROUND NO.12 DEALS WITH LEVYING OF INTEREST U/S. 23 4B OF THE ACT. WHILE COMPLETING THE ASSESSMENT,THE AO INTEREST U/S. 234B OF THE ACT.THE ASSESSEE CHALLENGED THE LEVY OF INTEREST BEFORE THE FIRST APPELLATE AUTHORITY (FAA),WHO DISM ISSED THE GROUND RAISED BY IT IN THAT REGARD. 3. BEFORE US,THE AR STATED THAT THE ISSUE STANDS COVER ED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF THE HON'BLE BOMBAY HIGH COURT ,DELIVER ED IN THE CASE OF NGC NETWORK ASIA LLC.(222 CTR 85),THAT IDENTICAL ISSUE WAS DECIDED B Y THE TRIBUNAL ON 7/11/17 WHILE DECIDING THE APPEALS/CO FOR THE EARLIER YEARS(ITA S ./5156/MUM/2009,569 & 3808/MUM/ 2010,ITA.S/.2744/MUM/2012-AY 2005-06 TO 2008-09 ).T HE DEPARTMENTAL REPRESENTATIVE LEFT THE ISSUE TO THE DISCRETION OF THE BENCH. 4. WE FIND THAT AT PARA NO.7 OF ORDER OF THE TRIBUNAL IN ITA.S FOR AY.S.2005-06 TO 2008- 09(SUPRA ),THE TRIBUNAL HAS DEALT THE ISSUE AS UND ER :- 2319/M/16 M/S. SPRINT COMMUNICATIONS COMPANY LP 2 7. ONE MORE ISSUE WHICH ARISES IN THESE APPEALS IS THE CHARGEABILITY OF INTEREST U/S. 234B. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT DECISION IN THE CASE OF DIT(IT) VS. NGC NETWORK ASIA LLC (2009) 222 CTR 85 (BOM). IN THE SAID CASE, IT WAS EXPOUNDE D THAT WHEN THE DUTY IS CAST ON THE PAYER TO PAY THE TAX AT SOURCE, ON FAILURE, NO MORE INTER EST CAN BE IMPOSED ON THE PAYEE ASSESSEE U/S. 234B. RESPECTFULLY FOLLOWING THE PRECEDENT, WE HOLD THAT INTEREST U/S.234B IN THIS CASE IS NOT CHARGEABLE. RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HON'BLE BOMBAY HIGH COURT WE DECIDE GROUND NO.12 IN FAVOUR OF THE ASSESSEE. AS A RESULT, APPEAL APP EAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2018. 01 2018 SD/- SD/- ( / AMARJIT SINGH ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED :01.03.2018. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR G BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.