DCIT, New Delhi V. M/s. Rolls-Royce PLC, Gurgaon

ITA 6691/DEL/2015

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 5918 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 17-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANCHAL KHANDELWAL
• Assessee Lawyers: S S THOMAR
• Keywords: Double taxation relief; Competent authority
• Section: 90

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I-2 NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBE R & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 6691/DEL/2015 ( ASSESSMENT YEAR: 2011-12) DCIT, CIRCLE-3(1)(1), NEW DELHI. VS M/S ROOLS - ROYCE PLC., C/O BMR & ASSOCIATES LLP, 22 ND FLOOR, BUILDING NO. 5, TOWER A, DLF CYBER CITY, DLF PHASE-III, GURGAON. PAN NO. AACCR6911L APPELLANT RESPONDENT REVENUE BY MS. ANCHAL KHANDELWAL, SR. DR ASSESSEE BY SH. S.S. THOMAR, ADV. ORDER PER SHRI BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ORDER OF DCIT, CIRCLE 3(1)(1), INTERNATIONAL TAXATION, NE W DELHI DATED 19.10.2015 U/S 143(3)/144C(13) OF THE INCOME TAX AC T PASSED IN PURSUANCE TO THE DIRECTIONS OF DRP-2, NEW DELHI DAT ED 21.09.2015 ON THE FOLLOWING GROUNDS: DATE OF HEARING 01.10.2018 DATE OF PRONOUNCEMENT 03.10.2018 2 ITA NO. 6691/DEL/2015 (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE HONBLE DISPUTE RESOLUTION PANEL (DRP) HAS ERRE D IN DIRECTING THE ASSESSING OFFICER TO ATTRIBUTE 35% OF THE PROFITS TO PE IN INDIA AGAINST THE ATTRIBUTION OF 75% OF THE P ROFITS DONE BY THE AO AND IN NOT FOLLOWING THE PRECEDENT LAID D OWN BY THE DISPUTE RESOLUTION PANEL (DRP) IN ASSESSMENT YEARS 2007-08, 2009-10 & 2010-11 AND BY THE LD. CIT(A) FOR THE ASS ESSMENT YEARS 2001-02, 2004-05 & 2005-06 WHEN THE FACTS OF THE AY 2011-12 ARE SIMILAR TO THE FACTS OF EARLIER ASSESSM ENT YEARS AND IN APPLYING THE DECISION OF THE HONBLE TRIBUNA L FOR THE ASSESSMENT YEARS 1997-98 TO 2000-01 & 2002-03 TO 20 03-04 WHEN THE FACTS OF THESE ASSESSMENT YEARS ARE DIFFER ENT FROM THE FACTS OF AY 2011-12. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE DRP HAS ERRED IN IGNORING THE FACT THAT THE ASSESSM ENTS FOR THE GIVEN AY 2011-12, AS WELL AS FOR THE AYS 2007-08, 2 009-10 & 2010-11 WERE FRAMED ON THE BASIS OF SPECIFIC INFORM ATION GATHERED DURING THE COURSE OF SURVEY PROCEEDINGS AT THE PREMISES OF THE ASSESSEE, AND THE FACT THAT THE ASS ESSEE HAS NOT MADE OUT A CASE FOR ANY CHANGE IN ITS ACTIVITIE S FROM THOSE DISCOVERED DURING THE SURVEY PROCEEDINGS? (III) THE APPELLANT PRAYS FOR LEAVE TO ADD, AMEND, MODIFY OR ALTER ANY GROUNDS OF APPEAL AT THE TIME OR BEFORE T HE HEARING OF THE APPEAL. 3 ITA NO. 6691/DEL/2015 2. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET, SUBM ITTED THAT AFTER PASSING OF THE IMPUGNED ASSESSMENT ORDER, THE AO PASSED THE ORDER U/S 90/143(3) OF THE ACT DATED 06.07.2018 BECAUSE THE ASSESSEE PREFERRED AN APPLICATION UNDER MAP BEFORE THE COMPETENT AUTHORITY. THE COMPETENT AUTHORITIES OF UK & INDIA HAVE ARRIVED AT THE RESOLUTION WITH RESPECT TO THE ASSESSEE U/S 90 OF THE ACT READ WITH ARTICLE 27 OF INDIA UK DTAA. COPY OF THE RESOLUTION OF THE COMPETENT AUTHORITY DATED 03.05.2 018 IS PLACED ON RECORD. THE COPY OF THE ASSESSMENT ORDER DATED 06.07.2018 IS ALSO PLACED ON RECORD. LD. COUNSEL FOR THE ASSESSE E, THEREFORE, SUBMITTED THAT SINCE THE MATTER IS SETTLED IN MAP, THEREFORE, DEPARTMENTAL APPEAL STANDS INFRUCTUOUS, COPY OF THE ABOVE ORDERS ARE PROVIDED TO THE LD. DR. LD. DR DID NOT DISPUTE THE SAME. 3. SINCE THE MATTER IS SETTLED IN MAP AND A CONSEQU ENT FRESH ASSESSMENT ORDER DATED 06.07.2018 HAS BEEN PASSED B Y THE AO, ASSESSING THE INCOME OF THE ASSESSEE ACCORDINGLY. THEREFORE, DEPARTMENTAL APPEAL HAS BECOME INFRUCTUOUS. SAME I S ACCORDINGLY DISMISSED. 4 ITA NO. 6691/DEL/2015 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03.10.2018 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 01.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 03.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 03.10.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 03.10.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03.1 0.18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 5 ITA NO. 6691/DEL/2015