DDIT, Hyderabad V. M/s Louis Berger International Inc., Hyderabad

ITA 243/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3285 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 16-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIWAKAR PRASAD
• Assessee Lawyers: S RAMA RAO
• Keywords: Double taxation relief; Advance ruling; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.242/HYD/10 : AS STT. YEAR 2004-05 ITA NO.243/HYD/10 : AS STT. YEAR 2005-06 DY. DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION)-I, HYDERABAD. V/S. M/S. LOUIS BERGER INTERNATIONAL INC. HYDERABAD ( PAN - AAACL 4067 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DIWAKAR PRASAD RESPONDENT BY : SHRI S.RAMA RAO O R D E R PER G.C.GUPTA, VICE PRESIDENT: THESE TWO APPEALS BY THE REVENUE FOR THE ASSESSME NT YEARS 2004-05 AND 2005-06 ARE DIRECTED AGAINST A COMMON O RDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS). SINCE COMMON ISSUES ARE INVOLVED, THESE TWO APPEALS ARE BEING DISPOSED OFF BY THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THERE IS A DELAY OF THREE DAYS IN FILING THE P RESENT APPEALS BEFORE THE TRIBUNAL BY THE REVENUE. WE HAVE HEARD THE PARTIES ON THE ISSUE OF CONDONATION OF DELAY AND AFTER CONSIDERING THEIR SUBMISSIONS, WE ARE OF THE VIEW THAT THIS IS A FIT CASE FOR CONDONATION OF DELAY IN THE FILING OF THESE APPEALS BY THE REVENUE. ACCORDINGLY, THE DELAY IN THE FILING OF THESE APPEALS BEFORE THE TRIBUNAL IS CONDONED. 3. IDENTICAL GROUND OF APPEAL NO.1 IN BOTH THESE APPEALS IS GENERAL IN NATURE AND NEEDS NO ADJUDICATION. ITA NO.242-243/HYD/10 M/S. LOUIS BERGER INTERNATIONAL INC. HYD 2 4. IDENTICAL GROUND OF APPEAL NO.2 OF THE REVENUE IS AS UNDER- THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THE F ACT THAT THE REIMBURSABLE EXPENSES BEING RECEIVED IN CONNECTION WITH THE RENDERING OF CONSULTANCY SERVICES IS TAXABLE AS FE ES FOR TECHNICAL SERVICES IN ACCORDANCE WITH CLAUSE (VII) OF SUB-SE CTION (I) OF SECTION 9 OF THE I.T. ACT, 1961 READ WITH PART 4 OF ARTICLE 12 OF THE DTAA WITH USA. 5. WE HAVE HEARD THE PARTIES. THE ISSUE INVOLVED IN THE ABOVE GROUND OF THE REVENUE IN THESE APPEALS IS COVERED I N FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL DATED 30 TH JUNE, 2010, IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEARS, VIZ. 2001-02 TO 2003-04 IN ITA NOS.1073-1074/HYD/2004 AND ITA NOS.720-721/HYD/2005 RESPECTIVELY, WHEREIN IT WAS HELD THAT REIMBURSEMENT OF EXPENDITU RE RECEIVED BY THE ASSESSEE COULD NOT FORM PART OF ITS TOTAL INCOME. W E, BEING IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TR IBUNAL IN ASSESSEES OWN CASE DATED 30 TH JUNE, 2010, DECIDE THE ISSUE IN FAVOUR OF THE ASS ESSEE AND ACCORDINGLY GROUND NO.2 IN BOTH THESE APPEALS BEFOR E US, IS REJECTED. 6. IDENTICAL GROUND OF APPEAL NO.3 OF THE REVENUE IN BOTH THESE APPEALS IS AS UNDER- THE LEARNED CIT(A) ERRED IN HOLDING THAT THE ASSES SEE IS ELIGIBLE FOR EXEMPTION U/S. 10(6A) OF THE IT ACT. 7. WE HAVE HEARD THE PARTIES. THE ISSUE INVOLVED IN GROUND OF APPEAL NO.3 OF THE REVENUE IN THESE APPEALS IS COVE RED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL DATED 30 TH JUNE, 2010, IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR S, VIZ. 2001-02 TO 2003- 04 IN ITA NOS.1073-1074/HYD/2004 AND ITA NOS.720-72 1/HYD/2005 RESPECTIVELY, WHEREIN IT WAS HELD THAT SPECIFIC APP ROVAL IN THIS CASE MAY NOT BE REQUIRED FOR CLAIMING EXEMPTION UNDER S.10(6A) O F THE ACT. WE BEING IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ITA NO.242-243/HYD/10 M/S. LOUIS BERGER INTERNATIONAL INC. HYD 3 ASSESSEES OWN CASE DATED 30 TH JUNE, 2010, DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND ACCORDINGLY GROUND NO.3 IN BOTH THESE APPEALS BEFORE US, IS REJECTED. 8. IDENTICAL GROUNDS OF APPEAL NO.4 AND 5 OF THE R EVENUE IN BOTH THESE APPEALS IS AS UNDER- 4. THE LEARNED CIT(A) ERRED IN HOLDING THAT THE AS SESSEE IS ELIGIBLE FOR EXEMPTION U/S.10(6A) OF THE I.T. ACT. 5. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THA T THE FEES FOR TECHNICAL SERVICES RECEIVED BY THE ASSESSEE IS TAXA BLE @ 20% IN THE LIGHT OF ADVANCE RULINGS IN THE CASE OF P.NO. 13 OF 1995(IN RE) REPORTED IN 228 ITR 487. 9. WE HAVE HEARD THE PARTIES. THE ISSUE INVOLVED IN GROUNDS OF APPEAL NO.4 AND 5 OF THE REVENUE IN THESE APPEALS I S COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL DATE D 30 TH JUNE, 2010, IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR S, VIZ. 2001-02 TO 2003- 04 IN ITA NOS.1073-1074/HYD/2004 AND ITA NOS.720-72 1/HYD/2005 RESPECTIVELY, WHEREIN IT WAS HELD THAT TAX HAS TO B E LEVIED ONLY AT 15% AND NOT AT THE RATE OF 20%. WE, BEING IN AGREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE DATED 30 TH JUNE, 2010, DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AN D ACCORDINGLY GROUNDS NO.4 AND 5 OF THE REVENUE IN BOTH THESE APPEALS BE FORE US, ARE REJECTED. 10. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 3-6-2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 03 JUNE, 2011 ITA NO.242-243/HYD/10 M/S. LOUIS BERGER INTERNATIONAL INC. HYD 4 COPY FORWARDED TO: 1. M/S. LOUIS BERGER INTERNATIONAL INC. 8-2-684/3/3 0, 2NDS FLOOR, BANJARA GREEN, ROAD NO.12, BANJARA HILLS, HYDERABAD 2. DY. DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATI ON)-I, HYDERABAD 3. ADDITIONAL DIRECTOR OF INCOME - TAX(INTERNATIONAL TAXATION) , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX VI HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.