The ACIT, Circle-2(1)(2), Ahmedabad V. Motif India Infotech Pvt. Ltd., Ahmedabad

ITA 2602/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4978 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 24-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AP ARNA AGRAWAL
• Keywords: Double taxation relief
• Section: 90

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2602/AHD/2017 ( / ASSESSMENT YEAR : 2015-16) THE ACIT CIRCLE-2(1)(2) AHMEDABAD / VS. MOTIF INDIA INFOTECH PVT.LTD. 1-A, WALL STREET-II, NR.GUJARAT COLLEGE ELLISBRIDGE, AHMEDABAD # ./ ./ PAN/GIR NO. : AACCM 1005 A ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : MS. APARNA AGRAWAL, CIT-DR &#%(' / RESPONDENT BY : SHRI SANJAY R.SHAH, AR )*(+ / DATE OF HEARING 08/05/2019 ,-./(+ / DATE OF PRONOUNCEMENT 14/05/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE REVENUE AGAINST THE APPELLATE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-2, AHMEDABAD [CIT(A) IN SHORT] DATED 18/08/2017 RELEVANT TO ASSESSMENT YEAR (AY) 2015-16. ITA NO.2602/AHD /2017 ACIT VS. MOTIF INDIA INFOTECH PVT.LTD. ASST.YEAR 2015-16 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE R EAD AS UNDER:- 1 THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIR ECTING THE AO TO GRANT FOREIGN TAX CREDIT WITH RESPECT TO THE INCOME OF THE BRANCH OFFICE IN PHILIPPINES WITHOUT PROPERTY APPRECIATING THE FACTS AND THE LAW ON THE MATTER. 1.1 THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIR ECTING THE AO TO GRANT FOREIGN TAX CREDIT WITHOUT GOING THROUGH THE DTAA (BETWEEN INDIA AND PHILIPPINES) AND WITHOUT APPLICATION OF M IND AS TO WHETHER ARTICLE 7 OF THE DTAA WARRANTED EXEMPTION M ETHOD OR CREDIT METHOD TO AVOID DOUBLE TAXATION. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD.A R FOR THE ASSESSEE IN THE REVENUES APPEAL SUBMITTED AT THE O UTSET, THAT THE CONTROVERSY INVOLVES CREDIT/GRANT OF FOREIGN TAX CR EDIT WITH RESPECT TO THE INCOME OF THE BRANCH OFFICE OF THE ASSESSEE IN PHIL IPPINES. THE LD.AR FOR THE ASSESSEE ALSO POINTED OUT THAT ORIGINALLY W HILE PROCESSING THE ASSESSMENT U/S.143(1) OF THE ACT, THE RELIEF TOWARD S FOREIGN CREDIT ELIGIBLE TO THE ASSESSEE ON TAX PAYABLE IN PHILIPPINES AS PE R PROVISIONS OF SECTION 90 READ WITH ARTICLE 24(1) AND 24(3) OF DTAA BETWEE N INDIA AND PHILIPPINES WAS NOT GRANTED. HOWEVER, THE ASSESSIN G OFFICER HAS NOW HIMSELF GRANTED THE RELIEF DUE TO THE ASSESSEE WHIL E PASSING THE ASSESSMENT ORDER U/S.143(3) DATED 13/12/2017. THER EFORE, THE GRIEVANCE OF THE REVENUE, IF ANY, DOES NOT SUBSIST ANY MORE A S THE ASSESSING OFFICER HIMSELF HAS ACQUIESCED THAT THE RELIEF IS A VAILABLE TO THE ASSESSEE. ITA NO.2602/AHD /2017 ACIT VS. MOTIF INDIA INFOTECH PVT.LTD. ASST.YEAR 2015-16 - 3 - THE LD.AR ACCORDINGLY SUBMITTED THAT THE APPEAL OF THE REVENUE HAS BECOME INFRUCTUOUS AND REQUIRES TO BE DISMISSED. 4. THE LD.DR, ON THE OTHER HAND, DID NOT CONTROVERT THE ASSERTIONS MADE ON BEHALF OF THE ASSESSEE AND FAIRLY TOOK NOTE OF RELIEF GRANTED BY THE ASSESSING OFFICER TOWARDS FOREIGN TAX CREDIT WH ILE COMPUTATION OF TAX LIABILITY PURSUANT TO ORDER PASSED UNDER S.143(3) O F THE ACT. 5. IN THE LIGHT OF AFORESAID DISCUSSION, WE FIND ME RIT IN THE ASSERTIONS MADE ON BEHALF OF THE ASSESSEE. THE RELIEF TOWARDS FOREIGN TAX CREDIT IS NO LONGER IN CONTROVERSY VIEW OF THE SUBSEQUENT ORD ER OF THE ASSESSING OFFICER. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 14 / 0 5 /201 9 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 14/ 05 /2019 3..),.)../ T.C. NAIR, SR. PS ITA NO.2602/AHD /2017 ACIT VS. MOTIF INDIA INFOTECH PVT.LTD. ASST.YEAR 2015-16 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-2, AHMEDABAD 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..8.5.19(DICTATION-PAD 5- PAGE S ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 10.5.19 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.14.5.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14.5.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER