SAP AG, KARNATAKA V. DDIT (IT) CIR 2(1), MUMBAI

ITA 5220/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79089 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 09-06-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 24-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KISHAN VYAS
• Section: 143(3)

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI .., ! , ' , # BEFORE SHRI I.P.BANSAL, JM AND SHRI RAJENDRA, AM ITA NO.5220/MUM/2013 : ASST.YEAR 2010-11. SAP AG, SAP LABS INDIA PRIVATE LIMITED, NO.138, EXPORT PROMOTION INDUSTRIAL PARK, WHITEFIELD ROAD, BANGALORE 560 006 PAN:AAFCS 3654J DY.DIRECTOR OF INCOME TAX (IT), CIRCLE 2(1), MUMBAI. ( $% / // / APPELLANT) ' ' ' ' / VS. ( ()$%/ RESPONDENT) $% * + * + * + * + /APPELLANT BY : NONE ()$% * + * + * + * + /RESPONDENT BY : SHRI KISHAN VYAS ' * ,-' / / / / DATE OF HEARING : 09.06.2014 ./0 * ,-' / DATE OF PRONOUNCEMENT : 09.06.2014 1 1 1 1 / / / / O R D E R PER I.P.BANSAL (JM) : THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DI RECTED AGAINST ORDER PASSED BY LD. CIT(A)-11, MUMBAI DATED 13/5/2013 FOR ASSESS MENT YEAR 2010-11. GROUNDS OF APPEAL READ AS UNDER: BASED ON THE FACTS AND CIRCUMSTANCES OF THE CASE, SAP AG (THE APPELLANT) RESPECTFULLY CRAVES LEAVE TO PREFER AN APPEAL AGAINST THE ORDER DATED 13 MAY 2013 PASSED BY THE COMMISSIONER OF INC OME-TAX (APPEALS)-1 1 THE LEARNED CIT(A)] UNDER SECTION 250 OF THE IN COME-TAX ACT, 1961(THE ACT), ON THE FOLLOWING GROUNDS: 1. THE LEARNED CIT(A) HAS ERRED, IN LAW, AND IN FAC TS, IN CONFIRMING THE ORDER ISSUED BY THE DEPUTY DIRECTOR OF INCOME T AX (INTERNATIONAL TAXATION), CIRCLE 2(1), MUMBAI (THE LEARNED AO) U NDER SECTION 143(1) OF THE ACT. THE APPELLANT CRAVES THAT THE OR DER OF THE LEARNED CIT(A), IN AS MUCH AS IT CONFIRMS THE ORDER OF THE LEARNED AC, BEING UNSUSTAINABLE AND BAD IN LAW, BE SET ASIDE. 2. THE LEARNED CIT(A) HAS ERRED, IN LAW, AND IN FAC TS, IN CONFIRMING THE ORDER OF THE LEARNED AO BY UPHOLDING THE LEVY O F SURCHARGE AND EDUCATION CESS IN ADDITION TO THE LEVY OF TAXES AT THE RATE OF 10 PER ITA NO.5220/MUM/2013 : ASST.YEAR 2010-11. 2 CENT AVAILABLE TO THE APPELLANT UNDER ARTICLE 12 OF THE INDIA- GERMANY DOUBLE TAXATION AVOIDANCE AGREEMENT. 3. THE LEARNED CIT(A) HAS ERRED, IN LAW, AND IN FAC TS, IN NOT ADJUDICATING ON THE LEVY OF TAXES AT THE HIGHER RAT E OF 52.79 PER CENT APPLIED BY LEARNED AO WHILE CALCULATING TOTAL TAX P AYABLE, INSTEAD OF THE BENEFICIAL RATE OF 10 PER CENT AVAILABLE TO THE APPELLANT UNDER ARTICLE 12 OF THE INDIA-GERMANY DOUBLE TAXATION AVO IDANCE AGREEMENT. 2. AT THE TIME OF HEARING ASSESSEE HAS FILED FOLLOW ING LETTER SEEKING WITHDRAWAL OF APPEAL ON THE GROUND THAT THE ISSUE R AISED IN THE PRESENT APPEAL HAS BECOME ACADEMIC. THE CONTENTS OF THE LETTER AR E AS UNDER: THIS IS WITH REFERENCE TO THE AFORESAID APPEAL WHI CH IS SCHEDULED TO BE HEARD ON 24 NOVEMBER 2014, BEFORE THE HONBLE MEMBERS. THE APPEAL WAS FILED BY THE COMPANY AGAINST THE ORD ER OF THE HONORABLE COMMISSIONER OF INCOME-TAX (APPEALS) - II, MUMBAI [ CIT(A)] WHEREIN HE HAD UPHELD THE HIGHER RATE OF TAX LEVIED IN THE INTIMAT ION ISSUED UNDER SECTION 143(1) OF THE INCOME-TAX ACT, 1961 (THE ACT). HOWEVER, POST FILING OF THE APPEAL THE RETURN OF IN COME FOR AY 2010-11 WAS SUBJECT TO SCRUTINY PROCEEDINGS AND THE AO HAS NOW PASSED AN ORDER DATED 12 MAY 2014 UNDER SECTION 143(3) OF THE ACT. LEVYING T HE CORRECT RATE OF TAX ON THE INCOME FOR THE SUBJECT AY. IN VIEW OF THE SAME, THE APPEAL AGAINST THE ORDER O F THE CIT(A) UNDER SECTION 250 OF THE ACT HAS BECOME ACADEMIC. WE THEREFORE REQUEST YOUR HONOURS TO KINDLY PERMIT US TO WITHDRAW THE APPEAL AND OBLIGE. WE REGRET THE INCONVENIENCE CAUSED TO HONBLE BENCH IN THIS REGARD. 3. LD. DR DID NOT HAVE ANY OBJECTION TO THE REQUEST OF WITHDRAWAL OF APPEAL BY THE ASSESSEE. THEREFORE, ACCEPTING THE REQUEST THE WITHDRAWAL OF THE PRESENT APPEAL IS PERMITTED AND THE APPEAL FILED BY THE ASS ESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 9 TH JUNE, 2014 . 1 * ./0 2'3 09/06/2014 / * : SD/- SD/- (RAJENDRA) (I.P.BANSAL) ' ' ' ' / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 2' DATED : 9 TH JUNE, 2014. VM. ITA NO.5220/MUM/2013 : ASST.YEAR 2010-11. 3 1 * (,; < ;0, 1 * (,; < ;0, 1 * (,; < ;0, 1 * (,; < ;0,/ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. ()$% / THE RESPONDENT. 3. =() / THE CIT, MUMBAI. 4. = / CIT(A)-13, MUMBAI 5. ;@: (,' , , / DR, ITAT, MUMBAI 6. :A B / GUARD FILE. 1' 1' 1' 1' / BY ORDER, );, (, //TRUE COPY// C CC C/ // /D D D D (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI