DCIT (IT) 3(2)(2), MUMBAI vs. MIZUHO CORPORATE BANK MAKER, MUMBAI

ITA 2712/MUM/2017Status: DisposedITAT Mumbai24 August 2022AY 2011-1220 pages
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What did the Tribunal hold?

The Tribunal held that the issue of taxability of interest income had been decided in favour of the assessee by a coordinate bench in prior years. Regarding commission on guarantees, the Tribunal found that the CIT(A)'s method of adding 10% lacked basis and directed a re-computation based on comparable international transactions.

What were the facts?

The assessee, Mizuho Bank Ltd., a Japanese bank with Indian branches, had interest income received by its head office from its Indian branch. The Assessing Officer treated this interest as taxable in India and also made additions regarding commission on guarantees. The CIT(A) allowed the appeal on the interest issue and directed re-computation of commission rates.

What were the issues?

Whether interest paid by an Indian branch to its foreign head office is taxable in India, and whether the method adopted for determining the arm's length price of commission on guarantees was appropriate.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(3),Section 163(1)(c),Section 40(a)(i),Section 92C

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI PRAMOD KUMAR, & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Madhur Agarwal
For Respondent: Shri K.C. Selvamani

PER SANDEEP SINGH KARHAIL, J.M.

The present cross appeals have been filed by the assessee and the Revenue challenging the separate orders of eve

The order continues below.

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