DCIT, CIRCLE- 16(2), NEW DELHI V. MITSUBISHI CORPORATION INDIA PVT. LTD., NEW DELHI

ITA 4346/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7496 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 12-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Double taxation relief; TDS; Set aside
• Section: 80G; 195

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. N.K. CHOUDHRY, JUDICIAL MEMBER ITA No.4345 & 4346/Del/2019 Assessment Year: 2014-15 & 2015-16 DCIT Circle – 16 (2) New Delhi Vs Mitsubishi Corporation India P. Ltd. Birla Tower, 5 th Tower, 25, Barakhamba Road, New Delhi PAN No.AAACM4764G (APPELLANT) (RESPONDENT) ITA No.4479/Del/2019 Assessment Year: 2015-16 Mitsubishi Corporation India P. Ltd. Birla Tower, 5 th Tower, 25, Barakhamba Road, New Delhi PAN No.AAACM4764G Vs DCIT Circle – 16 (2) New Delhi (APPELLANT) (RESPONDENT) Appellant Ms. Sapna Bhatia, CIT DR Respondent Sh. Tarandeep Singh, Advocate Date of hearing: 14/07/2022 Date of Pronouncement: 14/07/2022 2 ORDER PER N.K. BILLAIYA, AM: ITA No.4345/Del/2019 is the appeal by the revenue preferred against the order of the CIT(A)-37, New Delhi dated 28.02.2019 pertaining to A.Y.2014-15 and ITA No.4346/Del/2019 and ITA No.4479/Del/2019 are cross appeals by the revenue and the assessee preferred against the order of the CIT(A)-37, New Delhi dated 28.02.2019 pertaining to A.Y.2015- 16. 2. Since common issues are involved in the captioned appeals they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. The common grievance in both these appeals of the revenue relates to the deletion of the disallowance made by the AO on account of non deduction of TDS amounting to Rs.23.66 crores in A.Y.2014-15 and Rs.22.06 crores in A.Y.2015-16. 4. Since underlying facts in the issue are common we are addressing to the facts of A.Y. 2014-15. 5. During the course of the scrutiny assessment proceedings the AO noticed that the assessee has not deducted tax at source on purchases made from group entities. The same can be 3 understood from the following chart :- 6. Referring to the provisions of section 195 viz-a-viz the 4 relevant article of the DTAA the AO formed a belief that submission of the assessee is legally and factually not tenable because of the following reasons :- 5 6 7. As can be seen from the above in the last bullet the AO himself has agreed that this issue has been decided in favour of the assessee by this Tribunal for A.Y.2006-07 to 2010-11. 7 8. We have carefully perused the order of this Tribunal. This Tribunal has also considered this issue in ITA No.5184/Del/2017 for A.Y.2013-14. The relevant findings read as under :- 9. Respectfully following the decision of the coordinate Bench we decline to interfere with the findings of the CIT(A) this ground is accordingly dismissed. 10. Coming to the grievance of the assessee taken by it in his appeal in ITA No.4479/Del/2019 the only grievance relates to the disallowance of donation of Rs.39 lacs which was claimed as deduction u/s. 80G of the Act. 8 11. The AO disallowed the same for want of documentary evidences and the CIT(A) confirmed the disallowance because though the assessee filed donation receipts but the same was not accompanied by an application for the consideration of additional evidences. 12. We are of the considered opinion that the documentary evidences submitted by the assessee before the CIT(A) go to the root of the matter the same ought to have been admitted by the CIT(A). In the interest of justice we set aside this issue to the files of the AO. The assessee is directed to furnish the necessary documentary evidences before the AO and the AO is directed to examine/ verify the same and decide the issue as per the provisions of the law. 13. In the result, the appeal of the assessee is allowed for statistical purpose and both the appeals by the revenue are dismissed. 14. Decision announced in the open court on 14.07.2022. Sd/- Sd/- (N.K. CHOUDHRY) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA, Sr. Private Secretary* Date:- .07.2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 9 Date of dictation 15.07.2022 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for Pronouncement Date on which the fair order comes back to the Sr. PS/ PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order