ADIT (IT)-1(1), MUMBAI V. ASIA T.V. (UK), MUMBAI

ITA 4345/MUM/2009

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3760 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 01-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 17-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRITI BAUG
• Keywords: Double taxation relief; Permanent establishment; Tax effect

Judgement Text

, , IN COME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA , ACCOUNTANT MEMBER / I .T A NO. 4345/MUM/2009 ( / ASSESSMENT YEAR : 2005 - 06 THE ADIT (IT) - 1(1), SCINDIA HOUSE, 1 ST FLOOR, BALLARD ESTATE, N.M. ROAD, MUMBAI - 400 038 / VS. M/S. ASIA T.V. (UK) LTD., C/O MGB & CO. CAS., JOLLY BHAVAN - 2, 1 ST FLOOR, 7, NEW MARINE LINES, MUMBAI - 400 020 C.O. NO. 40/MUM/2010 ARISING OUT OF I .T A NO. 4345/MUM/2009 ( / ASSESSMENT YEAR : 2005 - 06 M/S. ASIA T.V. (UK) LTD., C/O MGB & CO. CAS., JOLLY BHAVAN - 2, 1 ST FLOOR, 7, NEW MARINE LINES, MUMBAI - 400 020 / VS. THE ADIT (IT) - 1(1), SCINDIA HOUSE, 1 ST FLOOR, BALLARD ESTATE, MUMBAI - 400 038 ./ ./ PAN/GIR NO. AADCA 0877H ( / APP ELLANT ) .. ( / RESPONDENT ) / REVENUE BY: MS PRITI BAUG / ASSESSEE BY: SHRI MANJUNATH KARKIHALLI / DATE OF HEARING : 01 . 0 3 . 201 6 / DATE OF PRONOUNCEMENT : 01.03.2016 / O R D E R PER C.N. PRASAD, JM : THE APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE ARE PREFERRED AGAINST THE ORDER OF THE LD. ITA NO. 4345/M/09 C.O. NO. 40/M/10 2 CIT(A) - XXXI , MUMBAI DATED 1 5.0 5 .20 09 PERTAINING TO ASSESSMENT YEAR 200 5 - 0 6 . 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT THE ASSESSEE DOES NOT HAVE A PERMANENT ESTABLISHMENT WITHIN THE MEANING OF ARTICLE 5 OF THE DTAA. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT THE INCOME FROM ADVERTISEMENT IS NOT TAXABLE AS PE2R ARTICLE 7 OF THE DTAA. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RTS. 16,04,709/ - MADE BY THE ASSESSING OFFICER. 3. BEFORE GOING INTO THE MERITS OF THE CASE, WE CONSIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDE R: - CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007 - ITJ (PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEASURES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS ITA NO. 4345/M/09 C.O. NO. 40/M/10 3 FOR FILING DEPARTMENTAL APPEALS (IN INCOME - TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECI FIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - S. NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. IT IS FURTHER CLARIFIED BY THE BOARD IN ITS CIRCULAR THAT THESE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS AND TRIBUNALS. IT IS ALSO MADE CLEAR THAT PENDING APPEALS BELOW THE MONITORY LIMITS FIXED IN PARA - 3 ABOVE MAY BE WITHDRAWN OR NOT PRESSED. 5. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT(A)S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/ - , WHICH IS BELOW THE MONETARY LIMITS AS MENTI ONED IN CBDT CIRCULAR DATED 10.12.2015 (SUPRA). FOLLOWING THE SAME, THIS APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 4345/M/09 C.O. NO. 40/M/10 4 6. SINCE THE APPEAL FILED BY THE REVENUE IS DISMISSED, THE CROSS OBJECTION FILED BY THE ASSESSEE BECOME INFRUCTUOUS , THEREFORE THE SAME IS ALSO D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH , 201 6 . SD/ - SD/ - ( ASHWANI TANEJA ) ( C.N. PRASAD ) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI ; DATED : 1 ST MARCH , 201 6 . . ./ RJ , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI