DDIT (IT) 2 (1), MUMBAI V. M/S STAR CRUISE MANAGEMENT LTD., MUMBAI

ITA 3805/MUM/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7262 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 12-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G P TRIVEDI
• Assessee Lawyers: DR K SHIVARAM; SATISH KANODIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI V.DURGA RAO, JM ITA NO.3805/MUM/2010 : ASST.YEAR 2006-2007 THE DEPUTY DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. VS. M/S.STAR CRUISE MANAGEMENT LIMITED C/O.SEKHRI KANODIA & ASSOCIATES CHARTERED ACCOUNTANTS G-15, EVEREST, TARDEO ROAD MUMBAI 400 034. PAN : AAHCS0352F. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.P.TRIVEDI RESPONDENT BY : DR.K.SHIVAR AM & SHRI SATISH KANODIA DATE OF HEARING : 02.08.2011 DATE OF PRONOUNCEMENT : 05.08.2011 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME -TAX (APPEALS) ON 24 TH FEBRUARY, 2010 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE ORDER OF THE CIT(A) DIRECTING THAT NO INCOME ACCRUED OR AROSE TO THE ASSESSEE IN INDIA ON ACCOUNT OF CRUISE TICKETS BOOKED BY ITS INDIAN AGENT. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE WAS ENGAGE D IN CANVASSING BUSINESS OF TRAV EL AND TOUR RELATED SERVICES. IT ENTERED INTO AGREEMENT W ITH M/S.STAR CRUISE MANAGEME NT COMPANY, ISLE OF MAN (FOREIGN COMPANY) FOR CANVASSING THEIR CRUISE IN INDIA FOR AN AGREED REMUNERATION. THE ASSESSEE CLAIMED THAT THE SALE PROCEEDS OF CRUISE TICKETS BEING REMITTED BY ITS INDIAN AGENT WERE NOT LIABLE TO TAX. TH E ASSESSING OFFICER TREATED SCITSPL AS AGENT OF SCML AND ESTIMATED INCOME ACC RUING TOWARDS THE OPERATIONS CARRIED OUT IN INDIA OF SCML AT THE RATE OF 5% OF THE CRUISE COLLECTIONS REMITTED FROM INDIA. WHEN THE MATTER CAME UP BEFORE THE LEARNE D CIT(A), HE OBSERVED THAT THE SUBJECT MATTER OF THE APPEAL AROSE OUT OF ORDE R U/S.195 FOR THE INSTANT YEAR WHICH WAS ITA NO.3805/MUM/2010 M/S.STAR CRUISE MANAGEMENT LIMITED. 2 DISPOSED OFF BY HIM BY WAY OF CONSOLIDAT ED ORDER FOR ASSESSMENT YEAR 2006-2007 TO 2010-2011 IN THE CASE OF STAR CRUISE (INDIA) TRAVEL SERVICES PRIVATE LIMITED. FOLLOWING THE SAME, HE ACCEPTED THE ASSESSEES CONTENTION. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE TRIBUNAL IN THE CASE OF STAR CRUISE (INDIA) TRAV EL SERVICES PRIVATE LIMITED HEARD THE DEPARTMENTAL APPEAL IN ITA NO.3941/MUM/2010. VIDE ORDER DATED 22.07.2011 THE APPEAL OF THE RE VENUE ON SIMILAR QUESTION HAS BEEN DISMISSED. IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-2006, THE TRIBUNAL CONSIDERED THE SIMILAR ISSUE AND VIDE ITS ORDER DATED 23.12.2010 IN ITA NO.6112/MUM/2008 DISMISSED THE REVENUES APPEAL. COPIES OF BOTH THE ORDERS HAVE BEEN PLACED ON RECORD. BOTH THE SIDE S ARE IN AGREEMENT THAT THE FACTS AND CIRCUMSTANCES OF THE APPEAL UNDER CONSIDERATION ARE MUTATIS MUTANDIS SIMILAR TO THOSE ALREADY CONSIDERED AND DECIDED BY THE TRIBUNAL. RESPECTFULLY FOLLOWING THE PRECEDENTS WE UPHOLD THE IMPUGNED ORDER. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN TH E OPEN COURT ON THIS 05 TH DAY OF AUGUST, 2011. SD/- SD/- (V.DURGA RAO) (R.S.SYAL) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 05 TH AUGUST, 2011. DEVDAS*` COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED ITA NO.3805/MUM/2010 M/S.STAR CRUISE MANAGEMENT LIMITED. 3 4. THE CIT(A) - XI, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.