The DCIT, Trivandrum V. The DCIT, Trivandrum

ITA 298/COCH/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5340 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 05-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A DHANARAJ
• Assessee Lawyers: SARANYA
• Section: 206AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI , AM & GEORGE GEORGE K., JM I.T.A. NO.298/COCH/2017 ASSESSMENT YEAR : 2010 - 11 THE DEPUTY COMMISSIONER OF INCOME-TAX (INTL. TAXATION), TRIVANDRUM VS. M/S. IBS SOFTWARE SERVICES PRIVATE LIMITED, 521-524, NILA, TECHNOPARK CAMPUS, KARYAVATTOM, TRIVANDRUM-695 581. [PAN:AAACI 6825N] (REVENUE - APPELLANT) (ASSESSEE - RESPONDENT) REVENUE BY SHRI A. DHANARAJ, SR. DR ASSESSEE BY SMT. SARANYA, ADV. D ATE OF HEARING 12/06/ 2018 DATE OF PRONOUNCEMENT 12 /06/2018 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AG AINST THE ORDER OF THE CIT(A)- III, KOCHI DATED 29/03/2017 AND PERTAINS TO THE ASS ESSMENT YEAR 2010-11. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS: 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-III, ` KOCHI IS CONTRARY TO THE LAW, FACTS AND CIRCUMSTAN CES OF THE CASE. 2) THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)- III, KOCHI HAS ERRED IN ALLOWING APPEAL OF THE ASSESSEE ON THE ISSUE OF APPLICABILITY OF SECTION 206AA OF THE IT ACT ON PAYMENTS MADE TO NON-RESIDEN T ENTITIES ON THE FACTS AND CIRCUMSTANCES OF THE CASE. I.T.A. NO.298/C/2017 2 3) THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)- III, KOCHI ERRED IN NOT APPRECIATING THE NON-OBSTANTE PROVISIONS CONT AINED IN SECTION 206AA OF IT ACT, INCLUDING THE TREATY. 4) FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT(A) MAY BE AN NULLED AND THAT OF THE AO BE RESTORED. 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE O PINION THAT THE ASSESSEE FOR THE SAME ASSESSMENT YEAR HAD ALSO COME IN APPEAL BEFORE THIS TRIBUNAL WITH REGARD TO DEDUCTION OF TDS ON THE PAYMENTS MADE TO VARIOUS NON-RESIDENTS. THE TRIBUNAL, VIDE ORDER IN ITA NO. 286/COCH/2017 DATED 12/04/2018 HAD REMITTED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO E XAMINE WHETHER THE SERVICES WERE RENDERED OUTSIDE INDIA AND THE SAME WAS UTILIZ ED OUTSIDE INDIA AND THE PAYEE IS HAVING NO BUSINESS OR BUSINESS CONNECTION IN INDIA. IN VIEW OF THIS, WE ARE OF THE OPINION THAT THE ISSUE RAISED BY THE REV ENUE IN THIS APPEAL IS HAVING DIRECT NEXUS WITH THE ISSUE RAISED BY THE ASSESSEE IN ITS APPEAL CITED SUPRA. HENCE, WE REMIT THIS ISSUE RAISED BY THE REVENUE AL SO TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME ALONG WITH THE ISSUE RAISED BY THE ASSESSEE IN ITS APPEAL CITED SUPRA. I.T.A. NO.298/C/2017 3 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THI S 12 TH JUNE, 2018. SD/- SD/- ( GEORGE GEORGE K.) (CHAN DRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 12 TH JUNE, 2018 GJ COPY TO: 1. M/S. IBS SOFTWARE SERVICES PRIVATE LIMITED, 521- 524, NILA, TECHNOPARK CAMPUS, KARYAVATTOM, TRIVANDRUM-695 581. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX (INTL. TAX ATION) CIRCLE, TRIVANDRUM. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-III, KOC HI 4. THE PR. COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRA R) I.T.A.T. , COCHIN