ADIT (IT) 4(2), MUMBAI V. PRAMERICA ASPF II CYPRUS HOLDINGS LTD, MUMBAI

ITA 3680/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84527 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 18-12-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 09-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEENA SINGH PANDEY
• Assessee Lawyers: K K VED
• Keywords: Double taxation relief
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES L MUMBAI . . , , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.3680/MUM/2013 (A.Y.2010-11) THE ASSTT. DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION)-4(2), MUMBAI. (APPELLANT ) VS. M/S. PRAMERICA ASPF II CYPRUS HOLDING LTD., C/O. DELOITTE HASKINS & SELLS, INDIABULLS FINANCE CENTRE, TOWER 3, 28 TH FLOOR, ELPHINSTONE MILL COMPOUND, SENAPATI BAPAT MARG, ELPHINSTONE (W), MUMBAI 400 013. PAN:AAECP 5087H (RESPONDENT) APPELLANT BY : MS.NEENA SINGH PANDEY RESPONDENT BY : SHRI K.K.VED DATE OF HEARING : 18/12/2014 DATE OF PRONOUNCEMENT : 18 /12/2014 ORDER PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS D IRECTED AGAINST ORDER PASSED BY LD. CIT(A)-11, MUMBAI DATED 06.02.2013 F OR ASSESSMENT YEAR 2010-11. GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT*(A) ERRED IN HOLDING THAT THE INTEREST INCOME IS TAXABL E UNDER ARTICLE 11 OF THE TREATY WITHOUT CONSIDERING THE FACT THAT ASSESSEE HAS OFFE RED THE INCOME TO BE TAXED AT NORMAL RATE AND NOT CLAIMED ANY BENEFIT IN THE RETU RN OF INCOME FILED. ITA NO.3608/MUM/2013 (A.Y.2008-09 2 2. IN THE PRESENT CASE AGAINST INTIMATION ISSUED UN DER SECTION 143(1) OF THE INCOME TAX ACT, 1961(THE ACT), THE ASSESEE PREF ERRED AN APPEAL BEFORE LD. CIT(A) ON THE GROUND THAT RATE OF TAX CHARGED BY TH E AO ON ITS INCOME WAS HIGHER. IT WAS CLAIMED THAT ASSESSEE IS ENTITLED F OR BENEFIT OF LOWER TAX AS PER DTAA BETWEEN INDIA AND USA. LD. CIT(A) HAS ACCEPT ED SUCH CLAIM OF THE ASSESSEE AND DEPARTMENT HAS FILED AFOREMENTIONED GR OUNDS OF APPEAL. 3. AT THE OUTSET, IT WAS BROUGHT TO OUR NOTICE BY L D. DR THAT LATTER ON PROCEEDINGS UNDER SECTION 143(3) OF THE ACT WERE TA KEN AGAINST THE ASSESSEE AND DRAFT ORDER DATED 28/3/2014 HAS ALREADY BEEN FR AMED. LD. DR HAS SUBMITTED A COPY OF THE SAID DRAFT ORDER. THUS, I T WAS PLEADED BY LD. DR THAT DEPARTMENTAL APPEAL HAS BECOME INFRUCTUOUS IN VIEW OF THE PROCEEDINGS TAKEN BY THE DEPARTMENT UNDER SECTION 143(3) OF THE ACT. 4. LD. AR COULD NOT CONTROVERT SUCH ASSERTION OF LD . DR. 5. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOT H THE PARTIES WE DISMISS THIS APPEAL ON THE GROUND THAT IN THE PROCEEDINGS T AKEN UNDER SECTION 143(3), THIS ISSUE HAS AGAIN BEEN TAKEN BY THE REVENUE AND THE SAME WOULD BE REQUIRED TO BE DECIDED AS PER PROVISIONS OF LAW. THEREFORE, WE ARE OF THE OPINION THAT THE APPEAL FILED BY THE REVENUE, IN TH E FACTS AND CIRCUMSTANCES OF THE CASE, HAS BECOME INFRUCTUOUS. THE REVENUE W ILL BE AT LIBERTY TO RE- EXAMINE THIS CLAIM OF THE ASSESSEE IN THE CONTINUED PROCEEDINGS CARRIED OUT ITA NO.3608/MUM/2013 (A.Y.2008-09 3 UNDER SECTION 143(3) OF THE ACT AND ASSESSEE ALSO C AN AGITATE SUCH TREATMENT AS PER PROVISIONS OF LAW IN THOSE PROCEEDINGS. THE REFORE, WE DISMISS THE DEPARTMENTAL APPEAL ONLY ON THE GROUND THAT THIS IS SUE HAS BEEN AGAIN TAKEN UP BY THE REVENUE IN THE PROCEEDINGS UNDER SECTIO N 143(3) OF THE ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 18/12/2014 ! ' #$ % &'( 18/12/2014 ' ) SD/- SD/- ( /SANJAY ARORA ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; &' DATED 18/12/2014 ! ! ! ! ' '' ' *+, *+, *+, *+, -,$+ -,$+ -,$+ -,$+ / COPY OF THE ORDER FORWARDED TO : 1. ./ / THE APPELLANT 2. *0./ / THE RESPONDENT. 3. 1 ( ) / THE CIT(A)- 4. 1 / CIT 5. ,2) *+' , , / DR, ITAT, MUMBAI 6. )3 4 / GUARD FILE. !' !' !' !' / BY ORDER, 0,+ *+ //TRUE COPY// 5 55 5 / 6 6 6 6 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . ' . ./ VM , SR. PS