CLIFFORD CHANCE PTE. LTD.,SINGAPORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIVIC CENTRE

ITA 2681/DEL/2023Status: DisposedITAT Delhi14 March 2024AY 2020-21Bench: DR. BRR KUMAR (Accountant Member), MS. ASTHA CHANDRA (Judicial Member)22 pages
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What did the Tribunal hold?

The Tribunal held that the levy of interest under section 234B was not sustainable, following a coordinate bench decision affirmed by the Delhi High Court. Regarding additions based on Form 26AS, the Tribunal restored the matter to the AO for verification, stating that mere reflection in Form 26AS does not automatically make income taxable if not received by the assessee.

What were the facts?

The assessee, Clifford Chance PTE Ltd., appealed against assessment orders for AY 2020-21 and 2021-22, challenging additions made by the Assessing Officer (AO) and directions from the Dispute Resolution Panel (DRP). Key issues included the validity of assessment proceedings, the constitution of a Permanent Establishment (PE) in India, and attribution of profits.

What were the issues?

The primary issues were the validity of assessment orders due to alleged limitation bar and lack of DIN in DRP directions, the existence of a Service PE in India under the India-Singapore Tax Treaty, and the correctness of profit attribution. Additionally, the taxability of amounts reflected in Form 26AS without actual receipt was examined.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 153,Section 9,Section 234A,Section 234B,Section 270A

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Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI

Before: DR. BRR KUMAR & MS. ASTHA CHANDRA

For Appellant: Shri Ajay Vohra, Sr. Adv, Ms. Shaily Gupta, Kunal Pandey and Archit Kabra, CA
For Respondent: Shri Vizay B. Vasanta, CIT-DR
Hearing: 18.12.2023

PER ASTHA CHANDRA, JM

The appeals filed by the assessee are directed against the two separate final assessment orders dated 28.07.2023 & 29.10.2023 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (the “Act”) in pursuance to the directions of Ld. Dispute Resolution Panel (“DRP”) pertaining to the Assessment Year (“AY”) 2020-21 & 2021-22 respectively. Since common issues are involved, both the appeals were heard together and are being disposed of by this common order.

ITA Nos. 2681 & 3377/Del/2023 Clifford Chance PTE. Ltd.

The order continues below.

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