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PER BENCH; 1. These two appeals by assessee are directed against the assessment order passed under section 143(3) r.w.s. 144C dated 28.09.2018 for Assessment Year 2010-11 and dated 30.10.2018 under section 143(3) r.w.s. 144C(13) for assessment year 2011-12. In both the appeals, the assessee has raised common ground of appeal except variation of addition of figure, therefore, both the appeals were clubbed, heard and was taken together for adjudication. In appeal for Assessment Year 2010-11, the assessee has raised following grounds of appeal: 1 & 7123 Mum 2018-Axens
1.1 On the facts and circumstances of the case and in law, the Assessing Officer ('AO') erred In concluding and the Dispute Resolution Panel ('DRP') erred in confirming that the income pertaining to offshore supplies from contract with Indian Oil Corporation Limited ('JOCL') is taxable in India basis that the contract is a composite contract 1.2 Without prejudice to above, the AO / DRP have erred in law in applying the average global profitability rate of 2.58 percent on the gross receipts from offshore supplies to arrive at taxable income of INR 8,80,372 under the head "Income from Business and Profession" without considering that the income from offshore supplies are not attributable to the Project Office / PE in India and the title of goods have passed outside India with respect to this offshore supply.
In appeal for Assessment Year 2011-12, the assessee has raised following grounds of appeal:
1.1 On the facts and circumstances of the case and in law, the Assessing Officer ('AO') erred In concluding and the Dispute Resolution Panel ('DRP') erred in confirming that the income pertaining to offshore supplies from contract with Indian Oil Corporation Limited ('JOCL') is taxable in India basis that the contract is a composite contract 1.2 Without prejudice to above, the AO / DRP have erred in law in applying the average global profitability rate of 2.54 percent on the gross receipts from offshore supplies to arrive at taxable income of INR 49,89,101 under the head "Income from Business and Profession" without considering that the income from offshore supplies are not attributable to the Project Office / PE in India and the title of goods have passed outside India with respect to this offshore supply.
At the outset of hearing Sh. Nitesh Joshi Advocate/ the ld. Authorized Representative (ld. AR) of the assessee submits that due to smallness of additions and quantum of tax effect, he has instruction from the assessee for not to press/ withdrawal the appeal for both the 2 & 7123 Mum 2018-Axens Assessment Year. The ld. AR of the assessee further submits that though the assessee has merit in grounds of appeal
, but merely not pressing the grounds of appeal should not be treated as admission/precedent against the assessee for other years. The withdrawal/not pressing the ground of appeal is only due to the reason that the tax effect involved in both the year is low.
4. On the other hand, the ld. Departmental Representative (DR) for the revenue submits that since the assessee is not pressing its grounds and withdrawing their appeals, the Department is presenting its arguments otherwise department wants to contest these appeals. The learned DR fairly left the matter to discretion of the Bench
5. We have considered the submission of both the learned representatives and perused the order of lower authorities. We have noted that the addition in Assessment Year 2010-11 is only of Rs. 8,80,372/- under the head “Income from Business & Profession”. Similarly, the addition for Assessment Year 2011-12 is only of Rs. 49,89,101/-. Considering the submissions made by ld. AR of the assessee at bar, the appeals for both the Assessment Year are dismissed as not pressed. We further accept the submission of ld. AR of the assessee that withdrawal of these appeals /not pressing the grounds of appeal shall not be treated as admission against the assessee on similar ground of appeal for other ITA No. 7024 & 7123 Mum 2018-Axens years. We also clarify that we have not commented on the merits of the issues in these appeals and they are dismissed only on the request of the assessee. We allow the assessee to withdraw these two appeals which stand dismissed. We order accordingly.
In the result, appeals of the assessee for both the Assessment Years are dismissed as withdrawn.
Order pronounced in the open court on 25 /07/2019.