International Management Group (UK) Ltd., Haryana V. ACIT Circle (Int. Taxation)-2(1)(1), Delhi

ITA 599/DEL/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 9670 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Appeal Filed On: 06-04-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Double taxation relief
• Section: 143(3); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH, NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA No. 599/DEL/2022 [A.Y 2018-19) M/s International Management Vs. The A.C.I.T Group [UK] Ltd, Building No. 6 Circle – 2(1)(1) Chiswick Park, 566, Chiswick High Inttl. Taxation Road, London New Delhi PAN: AABCI 9309 N (Applicant) (Respondent) Assessee By : Shri Rishabh Malhotra, Adv Department By : Shri R.D. Burman, CIT- DR Date of Hearing : 29.09.2022 Date of Pronouncement : 29.09.2022 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order dated 22.02.2022 framed u/s 143(3)/144C(13) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act']. 2 2. The grievances of the assessee read as under: “1. That in the facts and circumstances of the case & in law, the order passed by the Ld. Assistant Commissioner of Income Tax (“AO”) under Section 143(3) read with Section 1440(13) of the Income Tax Act 1961 (“the Act”), assessing the income of the Appellant at Rs. 15,62,67,010/- instead of returned income of Rs. 9,85,33,730/- is bad in law. 2.. That in the facts and circumstances of the case & in law, the Ld. AO as well as Hon’ble Dispute Resolution Panel (“DRP”) erred in not appreciating that the receipts of Rs. 5,77,33,276/- are effectively connected with the admitted PE and is accordingly to be taxed as business income, in view of the provisions of Article 13(6) of the India-UK DTAA. 3. That in the facts and circumstances of the case & in law, the Ld. AO as well as Hon’ble DRP erred in concluding that the balance receipts amounting to Rs. 5,77,33,276/- would partake character of fees for technical services as per the provisions of Article 13 (4) (c) of the India-UK Double Taxation Avoidance Agreement (‘DTAA’). 4 That in the facts and circumstances of the case & in law, the Ld. AO/Hon’ble DRP grossly erred in misconstruing the principle of make available as per Article I3(4)(c) of the India-UK DTAA and accordingly, erred in holding that the receipts of the Appellant satisfies the make available principle and is to be taxed as FTS under the provisions of India-UK DTAA.” 3 3. At the very outset, the ld. counsel for the assessee fairly stated that the impugned quarrel was also there in the earlier Assessment Years and the same has been decided by this Tribunal against the assessee and in favour of the Revenue. 4. On such concession, we have carefully perused the orders of the authorities below and have the benefit of the decision of this Tribunal in ITA No. 118/DEL/2021 order dated 08.09.2021. The relevant findings of the co-ordinate bench read as under: “6. We have heard the rival submissions and perused the materials available on record. Before us, it is Learned AR's submissions that issue raised in the present appeal is identical to the issues raised in the assessee's own case for A.Ys. 2010-11 to 2016-17 and in those years the issues has been decided against the assessee. In the absence of any distinguishing feature in the facts of the case in the year under consideration and that of the earlier years, we following the decision of the Co-ordinate Bench of Tribunal in assessee's own case for A.Y. 2010-11 order dated 04.10.2016 and for similar reasons dismiss the appeal of the assessee. Thus the appeal of the assessee is dismissed.” 6. Respectfully following the decision of the co-ordinate bench [supra], this appeal by the assessee is dismissed. 4 7. In the result, the appeal of the assessee in ITA No. 599/DEL/2022 is dismissed. The order is pronounced in the open court on 29.09.2022. Sd/- Sd/- [SAKTIJIT DEY] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29 th September, 2022. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 5 Date of dictation 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 the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order