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Income Tax Appellate Tribunal, “ A ” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
आदेश / O R D E R
PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed at the instance of the Revenue against the appellate order of the Commissioner of Income Tax(Appeals)-2, Ahmedabad [CIT(A) in short] dated 18/08/2017 relevant to Assessment Year (AY) 2015-16.
ITA No.2602/Ahd/2017 ACIT vs. Motif India Infotech Pvt.Ltd. Asst.Year – 2015-16 - 2 - 2. The grounds of appeal raised by the Revenue read as under:-
1 The Ld. CIT(A) has erred in law and on facts in directing the AO to grant foreign tax credit with respect to the income of the branch office in Philippines without property appreciating the facts and the law on the matter. 1.1 The Ld. CIT(A) has erred in law and on facts in directing the AO to grant foreign tax credit without going through the DTAA (between India and Philippines) and without application of mind as to whether Article 7 of the DTAA warranted exemption method or credit method to avoid Double Taxation. 3. When the matter was called for hearing, the Ld.AR for the assessee in the Revenue’s appeal submitted at the outset, that the controversy involves credit/grant of foreign tax credit with respect to the income of the branch office of the assessee in Philippines. The Ld.AR for the assessee also pointed out that originally while processing the assessment u/s.143(1) of the Act, the relief towards foreign credit eligible to the assessee on tax payable in Philippines as per provisions of section 90 read with Article 24(1) and 24(3) of DTAA between India and Philippines was not granted. However, the Assessing Officer has now himself granted the relief due to the assessee while passing the assessment order u/s.143(3) dated 13/12/2017. Therefore, the grievance of the Revenue, if any, does not subsist any more as the Assessing Officer himself has acquiesced that the relief is available to the assessee.
ITA No.2602/Ahd/2017 ACIT vs. Motif India Infotech Pvt.Ltd. Asst.Year – 2015-16 - 3 - The Ld.AR accordingly submitted that the appeal of the Revenue has become infructuous and requires to be dismissed.
The Ld.DR, on the other hand, did not controvert the assertions made on behalf of the assessee and fairly took note of relief granted by the Assessing Officer towards foreign tax credit while computation of tax liability pursuant to order passed under s.143(3) of the Act.
In the light of aforesaid discussion, we find merit in the assertions made on behalf of the assessee. The relief towards foreign tax credit is no longer in controversy view of the subsequent order of the Assessing Officer.
In the result, appeal of the Revenue is dismissed.
This Order pronounced in Open Court on 14/ 05/2019
Sd/- Sd/- (राजपाल यादव) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 14/ 05 /2019
ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS
ITA No.2602/Ahd/2017 ACIT vs. Motif India Infotech Pvt.Ltd. Asst.Year – 2015-16 - 4 -
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-2, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation ..8.5.19(dictation-pad 5- pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member …10.5.19 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….14.5.19 7. Date on which the file goes to the Bench Clerk…………………14.5.19 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………