M/S. AIR INDIA LTD., V. THE DY CIT (IT) 1(1),

ITA 9322/MUM/2004

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4276 (ITAT-MUMBAI)
• Duration Of Justice: 11 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 14-08-2017
• Assessment Year: 2001-2002
• Appeal Filed On: 21-12-2004
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JASBIR CHA UHAN
• Keywords: Principle of natural justice
• Section: 143(3); 144

Judgement Text

ITA NO.9322 /MUM/2004 ASSESSMENT YEAR: 2001 - 02 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI L BENCH, MUMBAI [CORAM : PRAMOD KUMAR AM AND PAWAN SINGH JM] ITA NO. 9322 /MUM/2004 AS SESSMENT Y EAR : 2001 - 02 AIR INDIA LIMITED - AS AN AGENT OF CARBIJET INC .. ....... .APPELLANT AIR INDIA BUILDING, NARIMAN POINT MUMBAI 400 021 [PAN: AAACA9213E] VS. DY. DIRECTOR OF INCOME TAX - INTERNATIONAL TAXATION 1(1) , MUMBAI ... RESPONDENT APPEARANCES BY: JITENDRA SANGHVI , FOR THE A PPELLANT JASBIR CHAUHAN , F OR THE RE SPONDENT DATE OF CONCLUDING THE HEARING : JANUARY 06 , 201 6 DATE OF PRONOUNCING THE ORDER : APRIL 5 TH , 201 6 O R D E R PER PRAMOD KUMAR AM : 1. THIS APPEAL , FILED BY THE ASSESSEE, IS DIRECTED AGAINST THE ORDER DATED 15 TH OCTOBER 2004 PASSED BY THE LEARNED CIT(A ), IN THE MATTER OF A SSESSMENT UNDER SECTION 143(3) R.W.S. 147 R.W.S. 163 OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2001 - 02. 2. GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (C.I.T.) ERRED IN REJECTING APPELLANT'S SUBMISSION THAT THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 144 WITHOUT GRANTING SUFFICIENT TIME AS PRAYED BY ITA NO.9322 /MUM/2004 ASSESSMENT YEAR: 2001 - 02 PAGE 2 OF 3 THE APPELLANT WAS IN VIOLATION OF STATUTORY PROVISIONS AND PRINCIPLES OF NATURAL JUSTICE AND HENCE BAD IN LAW AND ILLEGAL. WITHOUT PREJUDICE TO ABOVE: 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED C.I.T. (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER TO TAX INTEREST AWARDS AS INCOME TAXABLE IN INDIA ON THE BASIS OF DECISION IN APPELLATE ORDER IN THE CASE OF CARIBJET INC. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED C.I.T. (APPEALS) ERRED IN CONFIRMING ACTION OF THE ASSESSING OFFICER OF SUBJECTING APPELLANT TO TAX AS AGENT OF CARIBJET INC. IN RESPECT OF SAME AMOUNT OF COMPENSATION AND INTEREST IN RESPECT OF WHICH SIMULTANEOUS ASSESSMENT HAS BEEN MADE IN THE HANDS OF CARIBJET INC. 4. THE LEARNED C.I.T. (APPEALS) ERRED IN REJECTING SUBMISSION OF THE APPELLANT THAT THE DEPARTMENT HAVING ALREADY TREATED THE APPELLANT AS ASSESSEE IN DEFAULT IN RESPECT OF COMPENSATION AND INTEREST PAID TO CARIBJET INC BY PASSING ORDER U/S 195(2) READ WITH SEC. 201 OF THE INCOME TAX ACT 1961 AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED C.I.T. (A) FURTHER ERRED IN UPHOLDING VALIDITY OF THE IMPUGNED ORDER PASSED BY THE LEARNED ASSESSING OFFICER. 5. THE APPELLANT RESPECTFULLY SUBMITS THAT THE LEARNED C.I.T. (A) HAVING HELD THAT COMPENSATION RECEIVABLE BY CARIBJET INC U NDER THE AWARD WAS TAXABLE IN EARLIER YEAR I.E. ASST YEAR 2000 - 01 ERRED IN HOLDING THAT AMOUNT OF INTEREST AWARDS WAS TAXABLE IN ASST. YEAR 2001 - 02 AND NOT IN THE YEAR (ASST. YEAR 2000 - 01), WHERE THE COMPENSATION AWARD WAS TAXABLE IN THE HANDS OF THE CARIB JET INC. 3. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE ISSUE IS COVERED, AGAINST THE ASSESSEE, BY A COORDINATE BENCH DECISION OF THIS TRIBUNAL, EVEN AS LEARNED COUNSEL FOR THE ASSESSEE REITERATED HIS STAND. HOWEVER, AS A RESULT OF OUR ORDER OF EVEN D ATE, THE AMOUNT OF ARBITRAL REWARD OF US $ 22.4 MILLION HAS BEEN HELD TO BE TAXABLE IN THE HANDS OF THE ASSESSEE IN THE ASSESSMENT YEAR 2000 - 01 . TO THAT EXTENT, THE SAME INCOME CANNOT BE TAXED IN THE HANDS OF THE ASSESSEE AGAIN. THAT S THE ONLY POINT ON W HICH THE ASSESSEE MAY GET SOME RELIEF, IF AT ALL. NO OTHER ISSUES WERE PRESSED BEFORE US AT THIS STAGE. ITA NO.9322 /MUM/2004 ASSESSMENT YEAR: 2001 - 02 PAGE 3 OF 3 4. IN THE LIGHT OF THE ABOVE DISCUSSIONS, AND WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY O N THE 5 TH DAY OF APRIL, 2016. SD/ - SD/ - PAWAN SINGH PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 5 TH DAY OF APRIL , 2016 . COPIES TO : (1) THE APPE LLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI B ENCHES, MUMBAI