Rolls-Royce PLC, Gurugram V. DCIT, International Taxation, Circle-3(1)(1), New Delhi

ITA 7294/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5811 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Appeal Filed On: 06-12-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Keywords: Permanent establishment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I-2 NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 7294/DEL/2017 ASSESSMENT YEAR: 2013-14 M/S ROLL - ROYCE PLC 62, BUCKINGHAM GATE LONDON SWIE 6AT PAN NO. AACCR6911L VS DCIT CIRCLE 3(1)(1) INTERNATIONAL TAXATION NEW DELHI. APPELLANT RESPONDENT ASSESSEE BY NONE REVENUE BY SHRI SURENDER PAL, SR. DR ORDER PER SHRI H.S. SIDHU, J.M. THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAIN ST THE ORDER DATED 08.08.2017 FOR AY 2013-14. 2. THE AFORESAID APPEAL CAME UP FOR HEARING BEFORE THIS BENCH TODAY I.E. ON 09/08/2019. WE HAVE RECEIVED A LETTE R DATED 15/05/2019 WRITTEN BY THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. THE CONTENTS OF THE SAME ARE REPRODUCED AS UNDER: 2 ITA NO . 7294/DEL/2017 15 MAY 2019 THE HONBLE MEMBERS, BENCH- F THE INCOME-TAX APPELLATE TRIBUNAL, LOK NAYAK BHAWAN, KHAN MARKET, NEW DELHI 110003. APPELLANT :ROLLS ROYCE PLC PAN :AACCR6911L ASSESSMENT YEAR :2013-14 REFERENCE :APPEAL NO. 7294/DEL/2017 FILED ON 06.12.2017 SUBJECT :REQUEST FOR WITHDRAWAL OF APPEAL NO. 7294/DEL/2017 MAY IT PLEASE YOUR HONOURS : 1. THIS HAS REFERENCE TO CAPTIONED APPEAL NO. 7294/DEL /2017 FILED BEFORE THIS HONBLE TRIBUNAL ON 06.12.2017 AGAINST THE ASSESSMENT ORDER DATED 28.09.2017 PASSED BY THE LD. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), INTERNA TIONAL TAXATION, NEW DELHI UNDER SECTION 143(3)/144C(13) O F THE INCOME TAX ACT, 1961 (THE ACT). 2. THE APPELLANT HAD IN THE SAID APPEAL CHALLENGED THE ADDITION OF INR 31,96,66,849/- MADE BY THE LD. AO. 3. IN THIS REGARD, THE APPELLANT SUBMITS THAT IT HAD A PPROACHED THE COMPETENT AUTHORITIES BY INVOKING THE PROVISIONS OF ARTICLE 27 OF THE DOUBLE TAX AVOIDANCE AGREEMENT BETWEEN INDIA AN D UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND (IND IA-UK TAX TREATY) RELATING TO RESOLUTION OF DISPUTES BY MUTU AL AGREEMENT PROCEDURE (MAP) FOR THE AY 2013-14. 4. THE COMPETENT AUTHORITIES OF INDIA AND UK HAVE NOW REACHED A RESOLUTION AND PASSED AN ORDER DATED 29.04.2019, WH EREIN THE COMPETENT AUTHORITIES HAVE HELD THAT THE LIAISON OF FICE OF ROLLS ROYCE PLC CEASED TO UNDERTAKE ANY SIGNIFICANT ACTIV ITY DURING THE AY 2013-14, WHICH WOULD REQUIRE PROFIT ATTRIBUT ION AND HENCE NO PROFITS CAN BE ATTRIBUTED TO THE LIAISON O FFICE IN THE SAID AY. THE RELEVANT EXTRACTS OF THE ORDER ARE REPRODU CED HEREUNDER: 2.1 THE LIAISON OFFICE OF ROLLS ROYCE PLC CEASED TO UNDERTAKE ANY SIGNIFICANT ACTIVITY DURING THE AYS 2 013-14 AND 2014-15, WHICH WOULD REQUIRE ATTRIBUTION OF PRO FITS. ACCORDINGLY, NO PROFIT WOULD BE ATTRIBUTED FOR THE AY 2013-14 AND 2014-15 TO THE PERMANENT ESTABLISHMENT (PE) OF ROLLS ROYCE PLC. 5. IN VIEW OF THE ABOVE, THE PRIMARY ISSUE INVOLVED IN THE ISSUE IN APPEAL NOW STANDS DECIDED IN FAVOUR OF THE APPELLAN T. 3 ITA NO . 7294/DEL/2017 6. SEPARATELY, THE PROVISIONS OF RULE 44H(4) OF THE IN COME TAX RULES, 1962 (THE RULES), PROVIDES THAT TO GIVE EF FECT TO RESOLUTION ARRIVED AT UNDER MUTUAL AGREEMENT PROCED URE, THE ASSESSEE IS REQUIRED TO WITHDRAW ITS APPEAL, IF ANY , PENDING ON THE ISSUE WHICH WAS THE SUBJECT MATTER FOR ADJUDICA TION UNDER MUTUAL AGREEMENT PROCEDURE. 7. SINCE THE PRIMARY ISSUE IN ADJUDICATION BEFORE THIS HONBLE TRIBUNAL WAS THE SUBJECT MATTER OF ADJUDICATION UND ER MUTUAL AGREEMENT PROCEDURE, THE RESOLUTION OF WHICH HAS BE EN DECIDED IN FAVOUR OF THE APPELLANT BY THE COMPETENT AUTHORI TIES OF INDIA AND UK. ACCORDINGLY, THE APPELLANT, IN COMPLIANCE WITH THE PROVISIONS OF RULE 44H(4) OF THE RULES WISHES TO WI THDRAW THE CAPTIONED APPEAL FILED BEFORE THIS HONBLE BENCH AN D HUMBLY PRAYS BEFORE THE HONBLE BENCH TO PERMIT WITHDRAWAL OF CAPTIONED APPEAL. WE REQUEST THIS HONBLE BENCH TO KINDLY PERMIT WITH DRAWAL OF THE CAPTIONED APPEAL (APPEAL NO. 7294/DEL/2017) BY THE APPELLANT AND KINDLY OBLIGE. THANKING YOU, YOURS FAITHFULLY, FOR ROLLS ROYCE PLC SD/- NAME: TOM ASTILE 3. WE HAVE CONVEYED THE CONTENTS OF THE AFORESAID L ETTER TO THE LD. SR. DR AND POINTED OUT THAT ASSESSEE WANTS TO W ITHDRAWAL THIS APPEAL. HE HAS NOT RAISED ANY OBJECTION ON THE REQ UEST OF THE ASSESSEE. 4. AFTER GOING THROUGH THE CONTENTS OF THE LETTER D ATED 15/05/2019 REPRODUCED ABOVE AND NO OBJECTION RAISED BY THE LD. DR ON THE WRITTEN REQUEST OF THE ASSESSEE FOR WITHD RAWAL OF THIS APPEAL. WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE, THE REQUEST OF THE ASSESSEE SHOULD BE ACCEPTED AND WE A CCEPT THE SAME BY ORDERING THAT THE PRESENT APPEAL FILED BY T HE ASSESSEE IS DISMISSED AS WITHDRAWN. 4 ITA NO . 7294/DEL/2017 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 09/08/2019. SD/- SD/- (PRASHANT MAHARISHI) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09/08/2019 *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 09.08.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 09.08.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 09.08.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 09.08.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 09.08.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 09.08.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 09.08.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 09.0 8.2019 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 . 7294/DEL/2017