DDIT, New Delhi V. M/s. Mitsui & Co. Ltd., New Delhi

ITA 538/DEL/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4333 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 04-04-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 01-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWANI MAHAJAN
• Assessee Lawyers: V S RASTOGI

Judgement Text

ITA NOS. 536, 537, 538 & 539/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NOS. 536, 537, 538 & 539/DEL/2011 A.YRS. : 1998-1999, 1999-2000, 2003-04 & 2004-05 DDIT, CIRCLE - 3(1), INTL. TAXATION, ROOM NO. 202, DRUM SHAPE BUILDING, I.P. ESTATE, NEW DELHI VS. M/S MITSUI & CO. LTD., PLOT NO. D-1, 4 TH FLOOR, SALCON RAS VILAS, DISTRICT CENTRE SAKET, NEW DELHI - 110017 (PAN/GIR NO. : AAACM5469Q) (APPELLANT (APPELLANT (APPELLANT (APPELLANT ) )) ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. V.S. RASTOGI, A.R. DEPARTMENT BY : SH. ASHWANI MAHAJAN, C.I.T.(D.R.) ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE LD. COMMISSIONER OF INCOME T AX (APPEALS) PERTAINING TO ASSESSMENT YEAR 1998-99, 1999-2000, 20 03-04 & 2004-05. SINCE THE COMMON ISSUE HAS BEEN RAISED AND THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE COMMON ISSUE RAISED IS THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME TAX (APPE ALS) HAS ERRED IN HOLDING THAT THE LIAISON OFFICE DOES NOT CONSTITUTE A PE AND THERE WAS NO INCOME LIABLE TO TAX IN INDIA. ITA NOS. 536, 537, 538 & 539/DEL/2011 2 3. AT THE OUTSET, LD. COUNSEL OF THE ASSESSEE POINT ED OUT THAT THE ISSUE STANDS COVERED IN ASSESSEES FAVOUR BY THE O RDER OF I-BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO. 1806 /DEL/2005 FOR A.Y. 2001-02 DATED 8.2.2010 AND ALSO BY ANOTHER ORDER OF THE TRIBUNAL IN ITA NO. 4645/DEL/2005 FOR A.Y. 2002-03 VIDE ORDER DA TED 24.12.2008. 4. LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCEDED THAT IN EARLIER YEARS THE TRIBUNAL HAD DECIDED THE ISSUE IN ASSESSE ES FAVOUR. 5. WE HAVE CAREFULLY CONSIDERED THE FACTS AND SUBMIS SIONS, WE FIND THAT IN ITA NO. 4645/DEL/2005, THE TRIBUNAL HAD CON SIDERED THE ISSUE AS UNDER:- WE HAVE CONSIDERED THE FACTS OF THE CASE AND SUBMIS SIONS MADE BEFORE US. IN PARAGRAPH 24 OF THE ORDER FOR ASSESS MENT YEAR 2001-02 THE HONBLE TRIBUNAL CAME TO THE CONCLUSION THAT THE INCOME TAX AUTHORITIES ERRED IN HOLDING THAT THE LI AISON OFFICE HAD INCOME LIABLE TO TAX IN INDIA. THE ACTION OF THE L OWER AUTHORITIES IS NOT JUSTIFIED BOTH ON ACCOUNT OF THE SUBSISTING ORD ER OF SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE F OR ASSESSMENT YEARS 1980-81 AND 1981-82, AS ALSO THE AFORESAID DI SCUSSION. IN VIEW THEREOF, IT WAS ALSO HELD THAT THE DISPUTE REG ARDING COMPUTATION OF INCOME BECOMES OF ACADEMIC IMPORTANCE O NLY AND, THEREFORE, THE SAME NEED NOT BE DECIDED. THUS , THE APPEAL OF THE ASSESSEE WAS ALLOWED. RESPECTFULLY, FOLLOWI NG THAT ORDER, THE APPEAL OF THE ASSESSEE FOR THIS YEAR IS ALLOWED . ITA NOS. 536, 537, 538 & 539/DEL/2011 3 6. RESPECTFULLY, FOLLOWING THE ABOVE SAID PRECEDENT , WE DECIDE THESE APPEALS IN FAVOUR OF THE ASSESSEE BY UPHOLDING THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 7. IN THE RESULT, ALL THE FOUR APPEALS FILED BY TH E REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/04/2011 UP ON CONCLUSION OF HEARING. SD/- SD/- [ [[ [R.P. TOLANI R.P. TOLANI R.P. TOLANI R.P. TOLANI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 04/04/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES