NATWEST MARKETS PLC - INDIA BRANCH,KOLKATA vs. CIT (IT & TP), CIR- 1(2), KOLKATA, KOLKATA

This is an appeal preferred by the assessee against the Revisory order passed by the ld. Pr. Commissioner of Income Tax, Kolkata (hereinafter referred to as the “Ld. PCIT”] dated 28.03.2024 for the AY 2018-19.

3.1. At the outset, the ld. Counsel for the assessee pointed out that the issue is squarely covered by the decision of the co-ordinate bench in its own case in for A.Y. 2020-21 vide order dated 27.11.2024 and for A.Y. 2021-22 vide order dated 31.01.2025, wherein identical issue has been decided in favour of the assessee. Therefore, the ld. Counsel for the assessee submitted that the appeal of the assessee may kindly be allowed by quashing the revisionary order as the co-ordinate bench has held that 3.2. The ld. DR on the other hand fairly agreed that in the A.Y. 2020- 21 and 2021-22, the co-ordinate benches have decided the issue in favour of the assessee, however, relied on the order of the ld. PCIT vehemently.

3.3. After hearing the rival contentions and perusing the materials available on record, we find that the issue is squarely covered by the decisions of the co-ordinate benches in assessee’s own case for A.Y. 2020-21 and 2021-22, wherein the issue has been decided in favour of the assessee. For the sake of convenience we extract the operative in for A.Y. 2021-22 as under:

“04. After hearing the rival contentions and perusing the materials available on record, we find that the issue is squarely covered by the decision of the co-ordinate Bench in assessee’s own case in for A.Y. 2020-21, vide order dated 27.11.2024, wherein similar issue has been decided in favour of the assessee. So far as the facts of the present case before us are concerned, we note from the computation of the total income, a copy of which is available at page no.1 of the Paper Book, that the assessee has reduced interest on tax refund which was belonging to and offered to tax by RBS NV amounting to ₹62,12,73,011/-. We have also examined the copy of acknowledgement for A.Y. 2021-22 dated 09.02.2022, wherein the RBS NV has declared the interest on tax refund amounting to ₹62,12,72,670/- as income and paid taxes thereon and the ld. AO has not controverted the said fact. Therefore, the said income is not assessable in the hands of the assessee as it has been offered in the hands of the RBS NV in its return of income and if the same is allowed, it would amount to double taxation of the same income which is not permissible under the Act. For the sake of ready reference, we extract the operative part of the order in assessee’s own case for A.Y. 2020-21 in as under:- “8. The ld. AO thereafter passed the final assessment order u/s 143(3) read with section 144C(13) of the Act dated 27.01.2023, wherein the ld. AO reiterated the finding given by him in the draft assessment order, save and except that he held that interest of ₹6,18,50,000/- could not be added to the assessee’s income u/s 68 of the Act but it should be added u/s 56 of the Act as income from other sources and thereafter, applied rate of 40% plus the educational cess and surcharge to bring the said amount under tax. Aggrieved assessee preferred the appeal before the Tribunal against he said final order.

Order pronounced in the open court on 26.08.2025.