ACIT (International Taxation), Circle-2(1)(1), New Delhi V. M/s Halliburton Export Inc, New Delhi

ITA 5448/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3996 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 25-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Double taxation relief; Tax effect

Judgement Text

ITA NO.5448/DEL/2017 ASSESSMENT YEAR : 2014-15 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI D BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & DR.B.R.R.KUMAR, ACCOUNTANT MEMBER ITA NO.5448/DEL/2017 ASSESSMENT YEAR : 2014-15 A CIT(INTERNATIONAL TAXATION), CIRCLE-2(1)(1), NEW DELHI VS M/S. HALLIBURTON EXPORT INC., C/O-NANGIA & CO., A-109, SECTOR-136, NOIDA (U.P.) PAN-AABCH9692R APPELLANT RESPONDENT APPELLANT BY NONE RESPONDENT BY SH. AMIT ARORA, ADV. DATE OF HEARING 2 9 .09.2021 DATE OF PRONOUNCEMENT 29 .09.2021 ORDER PER KUL BHARAT, JM : THE PRESENT APPEAL FILED BY THE REVENUE PERTAINING TO ASSESSMENT YEAR 2014-15 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) -43, NEW DELHI DATED 06.06.2017. THE REVENUE HAS RAISED FOLLOWING GROUN DS OF APPEAL:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, WHETHER THE CIT(A) ERRED IN HOLDING THAT THE PAYMENTS BY TH E ASSESSEE FROM SALE OF SOFTWARE ARE NOT TAXABLE AS ROYALTY IN TERMS OF S EC 9(1)(VI) OF THE INCOME TAX ACT, 1961 AS WELL AS ARTICLE 12 OF THE INDIA-US DTAA. 2. THE APPELLANT CRAVES TO ADD, AMEND, MODIFY OR AL TER ANY GROUNDS OF APPEAL AT THE TIME OR BEFORE THE HEARING OF THE APP EAL. 2. HOWEVER, LD. COUNSEL FOR THE ASSESSEE POINTED OU T THAT THE PRESENT APPEAL PERTAINING TO ASSESSMENT YEAR 2014-15 DESERV ES TO BE WITHDRAWN AS THE TAX EFFECT INVOLVED IN THE CASE IS BELOW RS.50 LAC S. ITA NO.5448/DEL/2017 ASSESSMENT YEAR : 2014-15 3. THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08.08.20 19 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEALS BEFORE THE TR IBUNAL TO RS.50 LACS. FURTHER, CBDT VIDE LETTER DATED 20.08.2019 HAS ALSO CLARIFIED THAT CIRCULAR NO.17/2019 WOULD BE APPLICABLE TO ALL PENDING APPEA LS. IN SUCH CIRCUMSTANCES, THE PRESENT APPEAL FILED BY THE REVE NUE IN CASE OF LOW TAX EFFECT IS NOT MAINTAINABLE. 4. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RE-INSTITUTION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11.07.2018. 5. IN CONCLUSION, BY APPLYING THE CBDT CIRCULAR DAT ED 08.08.2019 AND LETTER DATED 20.08.2019 (SUPRA), THE CAPTIONED APPE AL OF THE REVENUE IS DISMISSED AS WITHDRAWN/NOT PRESSED. 6. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ABOVE DECISION WAS PRONOUNCED ON CONCLUSION OF VIRT UAL HEARING ON 29 TH SEPTEMBER, 2021. SD/- SD/- (DR. B.R.R.KUMAR) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIA L MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI