Visteon Corporation , Michigan V. DCIT,International Taxation, C2(2), Chennai

ITA 434/CHNY/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8591 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 31-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order; Double taxation relief; Set aside
• Section: 263; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण ‘सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा01 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम1। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.434/Chny/2021 (िनधाBरण वषB / Assessment Year: 2015-16) M/s. Visteon Corporation Grace Lake Corporation Centre, Van Buren Township, Michigan - 48111. बनाम/ V s. DCIT, International Taxation, Circle-2(2), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAD C V -5 6 6 0 -K (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri N.V. Balaji (Advocate) – Ld. AR थ की ओरसे/Respondent by : Shri M. Rajan (CIT) –Ld. DR सुनवाई की तारीख/ Date of Hearing : 21-02-2022 घोषणा की तारीख / Date of Pronouncement : 21-02-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this appeal, the assessee contests the invocation of revisionary jurisdiction u/s. 263 by Learned Commissioner of Income Tax (International Taxation), Chennai (CIT) vide order dated 30-03-2021. The Ld. AR submitted that the replies filed by the assessee during the course of revisionary proceedings have not been considered by the authority. ITA No.434/Chny/2021 - 2 - The Ld. CIT-DR, on the other hand, submitted that Ld. AO failed to take note of Article-23 of India-USA Treaty which justifies the revision. 2. Having heard rival submissions and after due consideration of material facts, our adjudication would be as given in succeeding paragraphs. 3. The perusal of record would show that the assessee was assessed u/s. 143(3) on 28.12.2017. The assessee is resident of United States. During the course of assessment proceedings, it transpired that the assessee rendered IT support service to its Associated Enterprises in India and received service charges. The services were primarily IT and infrastructure related services. The Ld. AO concluded that the services were not liable to be taxed as per Article 12 of India-USA DTAA and accepted the claim of the assessee that the services would not fall within the ambit of ‘fees for included services’. Accordingly, the returned income was accepted. 4. However, subsequently upon perusal of case records, Ld. CIT held that Ld. AO did not examine the applicability of Article-23 to the receipts and therefore, the order would require revision u/s 263. Accordingly, the assessment was set aside and Ld. AO was asked to re-frame the same after examining the character of the receipts and taxability thereof along with applicability of Article-23 after giving fresh opportunity to the assessee. Aggrieved, the assessee is in further appeal before us. 5. We find that the assessee had made detailed submissions vide its letter dated 30.03.2021 to revisional authority, the cognizance of which has remained to be taken in the impugned order. In the said reply, the assessee has elaborately explained as to how the provisions of Article- 23 would not be applicable to the case of the assessee. We find that this ITA No.434/Chny/2021 - 3 - reply would have material bearing on the revision. Since, the same has remained to be considered, we set-aside the impugned order and remit the matter of revision back to the file of revisional authority. The Ld. CIT is directed to reconsider the revision after considering assessee’s reply. Adequate opportunity of hearing shall be granted to the assessee. 6. The appeal stands allowed for statistical purposes. Order pronounced on 21 st February, 2022. Sd/- (MAHAVIR SINGH) उपा01 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद9 / ACCOUNTANT MEMBER चे)ई / Chennai; िदनांक / Dated : 21-02-2022 JPV JPVJPV JPV आदेश की Vितिलिप अ 6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF