RCL Feeder Pte Ltd, Singapore, Visakhapatnam V. The ITO, Visakhapatnam

ITA 255/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6466 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 03-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V APPALA RAJU
• Assessee Lawyers: P M VEERAMANI
• Keywords: Double taxation relief; Additional evidence; Competent authority

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON'BLE JUDICIAL MEMBER IT (IT) A NO S . 252 TO 255 / VIZ /201 7 (ASST. YEAR : 20 1 4 - 1 5 ) M/S. RCL FEEDER PTE LTD., C/O CHAKIAT SHIPPING SERVICES PVT. LTD. (AGENTS), 9 - 29 - 15/7, 4 TH FLOOR, PADMAVATHI TOWERS, BALAJI NAGAR, VISAKHAPATNAM. VS. ITO (INTERNATIONAL TAXATION) VISAKHAPATNAM. PAN NO. AABCR 9993 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.M. VEERAMANI C A. DEPARTMENT BY : SHRI V. APPALA RAJU - SR. DR DATE OF HEARING : 19 / 1 2 /201 7 . DATE OF PRONOUNCEMENT : 22 / 1 2 /201 7 . O R D E R THESE ARE THE APPEAL S FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDER S OF COMMISSIONER OF INCOME TAX (APPEALS) - 10 , HYDERABAD , EACH DATED 19 / 1 0/201 6 FOR THE ASSESSMENT YEAR 2014 - 15 . 2. FACTS OF THE CASE ARE IN BRIEF THAT M/S. CHAKIAT SHIPPING SERVICES PVT. LTD. APPLIED FOR NO OBJECTION CERTIFICATE (NOC) ON 03/03/2014 IN RESPECT OF THE VESSELS M.V. RACHA BHUM AS A AGENT OF THE ASSESSEE. THE NOC WAS ISSUED BY PASSING ORDER UNDER SECTION 163 OF THE INCOME TAX ACT, 1961 (HEREINAFTER 2 IT (IT) A NOS. 252 - 255/VIZ/2017 (M/S. RCL FEEDER PTE LTD.) REFERRED TO AS 'ACT') TREATING M/S. CHAKIAT SHIPPING SERVICES PVT. LTD., AS A AGENT TO THE NON - RESIDENT SHIPPING COMPANY I . E. FREIGHT BENEFICIARY. THE AGENT WAS ASKED TO FILE RETURN UNDER SECTION 172(3) IN RESPECT OF FREIGHT TAX PAYABLE BY THE NON - RESIDENT FREIGHT BENEFICIARY WITHIN 30 DAYS FROM THE DATE OF DEPARTURE OF THE SAID VESSEL FROM VISAKHAPATNAM PORT. IN RESPONSE THERETO, THE AGENT FILED RETURN OF INCOME UNDER SECTION 172(3) ON 27/03/2014. ON VERIFICATION OF DETAILS FILED, THE ASSESSING OFFICER HAS NOTICED THAT OUT OF TOTAL USD 51941.79, AN AMOUNT OF USD 18019.50 W AS REMITTED TO OR RECEIVED IN SINGAPORE , WHICH IS ELIGIBLE FOR RELIEF UNDER ARTICLE 8 OF DTAA BETWEEN INDIA & SINGAPORE. AS PER ARTICLE 24 OF THE DTAA , THE AMOUNT NOT REMITTED TO OR RECEIVED IN SINGAPORE TO THE EXTENT OF USD 33922.29 IS CONSIDERED FOR TAX ATION AS PER THE PROVISIONS OF SECTION 172(4) OF THE ACT. 3. ON APPEAL BEFORE THE LD. CIT(A), IT WAS SUBMITTED THAT THE COMPETENT AUTHORITY HAS ISSUED NOC AND THE RE FORE, THE ASSESSING OFFICER IS NOT CORRECT IN PASSING THE ORDER. THE LD. CIT(A) HAS CONFIRMED THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT ASSESSEE HAS NOT CLAIMED BEFORE THE ASSESSING OFFICER THAT THE COMPETENT AUTHORITY HAS ISSUED NOC UNDER SECTION 163 OF THE ACT AND T HE ASSESSEE DID NOT OPT FOR AVAILING THE PROVISIONS OF SECT ION 3 IT (IT) A NOS. 252 - 255/VIZ/2017 (M/S. RCL FEEDER PTE LTD.) 172( 7 ) OF THE ACT. THE ASSESSEE BEFORE THE LD. CIT(A) FILED A CERTIF I CATE ISSUED BY THE INLAND REVENUE AUTHORITY OF SINGAPORE , DATED 20/04/2017 AND ALSO THE CERTIFICATE ISSUED BY THE PUBLIC ACCOUNTANTS & CHARTERED ACCOUNTANTS SINGAPORE . THE LD. CIT(A) REJECTED THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE ON THE GROUND THAT THE SAME WERE NOT FILED BEFORE THE ASSESSING OFFICER. 4 . ON APPEAL BEFORE THIS TRIBUNAL, LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE HAS SUBMITTED THAT THE CERTI FICATE ISSUED BY THE INLAND REVENUE AUTHORITY OF SINGAPORE AND ALSO CERTIFICATE ISSUED BY THE PUBLIC ACCOUNTANTS & CHARTERED ACCOUNTANTS SINGAPORE ARE THE RELEVANT MATERIAL AND THE SAME HAS TO BE CONSIDERED TO DECIDE THIS APPEAL AND PRAYED THAT THE ORDER PASSED BY THE LD. CIT(A) MAY BE SET ASIDE AND DIRECTED THE ASSESSING OFFICER TO CONSIDER THE CERTIFICATES ISSUED BY THE COMPETENT AUTHORITIES. 5 . THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT RAISED ANY OBJECTION. 6 . IN VIEW OF THE ABOVE, I AM OF THE OPINION THAT THE ASSESSING OFFICER HAS PASSED THE ORDER WITHOUT REFERENCE TO THE CERTIFICATES ISSUED BY THE COMPETENT AUTHORITIES , ADMITTEDLY , THEY WERE NOT FIELD BEFORE THE ASSESSING OFFICER. THOUGH, THE ASSESSEE HAS FILED THE SAME BEFORE THE LD. CIT(A), HE HAS REJECTED THE SAME ON THE 4 IT (IT) A NOS. 252 - 255/VIZ/2017 (M/S. RCL FEEDER PTE LTD.) GROUND THAT THE SAME DOCUMENTS WERE NOT FILED BEFORE THE ASSESSING OFFICER. THEREFORE, IN THE INTEREST OF JUSTICE, I SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION BY CONSIDERING THE CERTIFICATES FILED AT PAGE NO. 10 & 11 OF THE PAPER BOOK AND PASS ASSESSMENT ORDER IN ACCORDANCE WITH LAW AFTER GIVING PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 7 . IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 2 2 N D DAY OF DEC . , 201 7 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 2 2 N D DECEMBER , 201 7 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. RCL FEEDER PTE LTD., C/O CHAKIAT SHIPPING SERVICES PVT. LTD. (AGENTS), 9 - 29 - 15/7, 4 TH FLOOR, PADMAVATHI TOWERS, BALAJI NAGAR, VISAKHAPATNAM. 2. THE REVENUE ITO (INTERNATIONAL TAXATION), VISAKHAPATNAM. 3. THE CIT (IT & TP), HYDERABAD. 4. THE CIT(A) - 10, HYDERABAD . 5. THE D.R. , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SENIOR PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.