SIVAKARTHICK RAMAN ,MADURAI vs. ACIT , INTERNATIONAL TAXATION , CIRCLE , MADURAI

The assessee raised grounds No. 1 to 5 amongst which, the only issue emanates for our consideration as to whether the Assessing

Admittedly, the Assessing Officer passed final assessment order in pursuance of the directions dated 27.06.2022 of the Dispute Resolution Panel-2, Bengaluru, which held that the assessee is not eligible for treaty benefits since the assessee has not demonstrated that he had paid the taxes on the income for rendering services outside India vide para 6.6.3. When confronting the same, the ld. AR Ms. Preeti Goel, Advocate placed on record paper book containing 12 pages. She referred to page 5, which is Annexure-A stated to be in Chinese language and true English translation is at page 6 of the paper book. The ld. AR submits that it is individual income tax payment record from 01.01.2018 to 01.12.2018. The ld. AR further drew our attention to page 8 and submits that the said documents contain salary details from January, 2019 to December, 2019. She argued that these true copies of page 5 to 8 are important documents for fair adjudication in respect of the claim of the assessee, which were not available before the TPO/DRP/AO. She drew our attention to the Application under Rule 29 at page 9 of the paper book and prayed to remand the matter to the file of the TPO/AO for verification and fresh adjudication.

The ld. DR Shri AR.V. Sreenivasan, CIT did not report objection in this regard.

Having heard both the parties and on perusal of the record, we note that the tax payment certificate issued by the authorities of People’s Republic of China was not furnished during draft assessment proceedings, which is clear from para 9 of the draft assessment order. Further, it is also clear from para 6.6.3 of the DRP order, wherein, the Panel held that the assessee is not entitled to claim any benefit under Article 15 of the India-China DTAA in the absence of any proof showing that the assessee had paid the taxes on the income for rendering services outside India. The ld. AR, as discussed above, placed on record at page 5 to 8 stating it to be new tax payment record and fairly conceded those documents were not filed before the authorities below. Therefore, considering the same, in the interest of justice, treating the said evidences as new, we deem it proper to remand the matter to the file of the TPO/AO for fresh consideration for its verification the proof for payment of taxes in China. The Assessing Officer shall examine the same and pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025 at Chennai.