DIT v. NGC Network Asia LLC

DCIT (It) 3(3)(1), Mumbai vs. Quintiles Transnational Corp, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.1498/Mum/2016 (निर्धारण वर्ा / Assessment Year: 2012-13) Dcit (International बिधम/ M/S. Quintiles Transnational Taxation)-3(3)(1), Mumbai Corp. C/O. Deloitte Haskins Vs. & Sells, Chartered Accountants, Tower 3, 27Th - 32Nd Floor India Bulls Finance Centre Elphinstone Mill Compound Mumbai- 400013. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacq2015N (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Ram Tiwari (Sr. Ar) Assessee By: Shri K.K. Ved सुनवाई की तारीख / Date Of Hearing: 25.05.2018 घोषणा की तारीख /Date Of Pronouncement: 06.07.2018 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 14.12.2015 Passed By The Dispute Resolution Panel -2, Mumbai [Hereinafter Referred To As The “Drp”] Relevant To The A.Y.2012-13. 2. The Revenue Has Raised The Following Grounds: - “Whether On The Facts & In Circumstances Of The Case & In Law, The Ld. Drp Was Justified In Holding That The Assessee Company Is Not Liable To Interest U/S 234B Of The Act, Despite Decision Of A.Y.2012-13

…of interest u/s. 234B of the Act. After hearing both the parties, we noted that this issue is no more res integra in view of the decision of the jurisdictional High Court in the case of Director of Income-tax (International Taxation) vs. NGC Network Asia LLC 313 ITR 187 (Bom), in which the High Court has clearly held that when a duty was cast on the payer to deduct the tax at source, on failure of the payer to do so, no interest could be imposed on the assessee u/s. 234B. It is not denied that payer in the impugned case was under an obligation to deduct the tax at source but he has not deducted the tax at source…

Renaissance Services Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

The appeal of the assessee is partly allowed in terms of our aforesaid observations

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm Renaissance Services Bv The Deputy Director Of C/O Bmr & Associates Llp Income-Tax (International बिधम/ Bmr House, 36B Taxation)-2(1), 1St Floor 36B, Dr. R.K Shirodkar Marg, Room No. 120, Scindia Vs. Parel, Mumbai- 400 012 House, Ballard Estate Mumbai- 400 038 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaecr4995E (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

…ure to do so interest under Sec. 234B could not be imposed on the payee assessee. The ld. A.R in support of his aforesaid contention relied on the judgment of the Hon‟ble High Court of Bombay in the case of DIT (Intl. Taxation) Vs. NGC Network Asia LLC (2009) 313 ITR 187 (Bom). Lastly, the ld. A.R submitted that the A.O had erred in raising the tax rate provided in the India-Netherland tax treaty by a further amount of surcharge, education cess and secondary and higher education cess. The ld. A.R in support of his aforesaid contention drew our attention to certain judicial pronouncements. 7. Per contra, the ld. D…

DCIT(It)4(1)(1), Mumbai vs. Reliance Globalcom Ltd.Bermuda(Formerly Known As M/S.Flag Telecom Group Ltd.), Mumbai

In the result, whereas the appeal of the assessee is partly allowed, that of the Revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood

…other only issue is with regard to the charging of interest u/s 234B of the Act. On this aspect, the learned representative pointed out that it is a settled proposition in terms of the judgment of Hon'ble Bombay High Court in the case of NGC Network Asia LLC, 313 ITR 187 (Bom.) that there would be no chargeability of interest u/s 234B of the Act as the receipts on account of standby maintenance charges from TCL are subjected to withholding tax u/s 195 of the Act. On this aspect, it was also a common point between the parties that the said proposition has also been affirmed by the Tribunal in assessee’s own case i…

DCIT-(It)-4(1)(1), Mumbai vs. Reliance Globalcom Ltd.Bermuda(Formerly Known As M/S.Flag Telecom Group Ltd.), Mumbai

In the result, whereas the appeal of the assessee is partly allowed, that of the Revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood

…other only issue is with regard to the charging of interest u/s 234B of the Act. On this aspect, the learned representative pointed out that it is a settled proposition in terms of the judgment of Hon'ble Bombay High Court in the case of NGC Network Asia LLC, 313 ITR 187 (Bom.) that there would be no chargeability of interest u/s 234B of the Act as the receipts on account of standby maintenance charges from TCL are subjected to withholding tax u/s 195 of the Act. On this aspect, it was also a common point between the parties that the said proposition has also been affirmed by the Tribunal in assessee’s own case i…

Reliance Globalcom Limited, Bermuda, Mumbai vs. Addl DIT (Intl. Tax)-2, Mumbai

In the result, whereas the appeal of the assessee is partly allowed, that of the Revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood

…other only issue is with regard to the charging of interest u/s 234B of the Act. On this aspect, the learned representative pointed out that it is a settled proposition in terms of the judgment of Hon'ble Bombay High Court in the case of NGC Network Asia LLC, 313 ITR 187 (Bom.) that there would be no chargeability of interest u/s 234B of the Act as the receipts on account of standby maintenance charges from TCL are subjected to withholding tax u/s 195 of the Act. On this aspect, it was also a common point between the parties that the said proposition has also been affirmed by the Tribunal in assessee’s own case i…

Clearwater Capital Partners (Cyprus) Ltd, Mumbai vs. DCIT (It) 2(1)(1), Mumbai

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm Clearwater Capital Partners Deputy Commissioner Of (Cyprus) Limited C/O S.R.B.C Income Tax (International बिधम/ & Associates Llp, 14Th Floor, Taxation)-2(1)(1) Room No. The Ruby, 29 Senapati Bapat 114, 1St Floor, Scindia House, Vs. Marg, Dadar (West) Nm Marg, Ballard Pier, Mumbai-400028 Mumbai-400 038 स्थायी लेखा सं./ जीआइआर सं./ Pan No. Aaccc9756A

…P a g e | 1 ITA Nos. 1025 & 843/Mum/2016 A.Y. 2011-12 Clearwater Capital Partners Vs. DCIT (International Taxation) IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SHRI G.S.PANNU, AM AND SHRI RAVISH SOOD, JM Clearwater Capital Partners Deputy Commissioner of (Cyprus) Limited C/o S.R.B.C Income Tax (International बिधम/ & Associates LLP, 14th Floor, Taxation)-2(1)(1) Room No. The Ruby, 29 Senapati Bapat 114, 1st Floor, Scindia House, Vs. Marg, Dadar (West) NM Marg, Ballard Pier, Mumbai-400028 Mumbai-400 038 स्थायी लेखा सं./ जीआइआर सं./ PAN No. AACCC9756A (अऩीराथी / Appellant) (प्रत्मथी / Respondent)…

DCIT (It) 3(2)(2), Mumbai vs. Marubeni Corporation, Mumbai

In the result, appeal of the Revenue stands dismissed

Bench: S/Shri Shamim Yahya & Ravish Soodअयकर ऄपऩल सं./I.T.A. No.4990/Mum/2015 (ननधधारण वषा / Assessment Year : 2010-2011) बनधम/ Dy. Cit (It)-3(2)(2) M/S. Marubeni Corporation Scindia House, Ballard Pier, C/O/, M/S. Marubeni India Pvt.Ltd. Vs. 25, Mittal Chambers, 2Nd Floor, N.M. Road Mumbai-400 038 Nariman Point, Mumbai-400 021. स्थधयऩ लेखध सं./Pan :Aaacm 7682 D (ऄपऩलधथी /Appellant) .. (प्रत्यथी / Respondent)

…has been submitted that the same is covered in favour of the assessee by several decisions including that of the Hon'ble Jurisdictional High Court in the case of Director of Income tax (Intl Taxation) vs. NGC Network Asia LLC (2009) 222 CTR 86 (Bom); (2009) (313 ITR 187). We find that in this case it was held that when duty is cast on the payer to pay tax at source, on failure, no interest can be imposed on the payee assessee. Accordingly, considering the above decisions, we do not find any infirmity in the order of the ld. Commissioner of Income tax(Appeals) in this regard. In the result, appeal of the Revenue…

Nagase & Co.Ltd, Mumbai vs. DCIT (It) 4(2), Mumbai

The appeals of the Revenue are dismissed

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: (A.Y : 2005-06)

…lar issue for Assessment Year 1998-99 was considered by our co-ordinate Bench in its order dated 12.01.2017 (supra) and decided in favour of the assessee following the ratio of the judgment of the Hon'ble Bombay High Court in the case of NGC Network Asia LLC, 313 ITR 187 (Bom.). Following the aforesaid precedent, the plea of the assessee on this aspect is also upheld. 14. Thus, insofar as Assessment Year 2005-06 is concerned, the appeal of the assessee is allowed and that of the Revenue is dismissed. 15. Now, we may take-up the cross-appeals of the assessee and the Revenue pertaining to Assessment Year 2006-07…

DDIT (It) 4(2), Mumbai vs. Nagase & Co. Ltd, Mumbai

The appeals of the Revenue are dismissed

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: (A.Y : 2005-06)

…lar issue for Assessment Year 1998-99 was considered by our co-ordinate Bench in its order dated 12.01.2017 (supra) and decided in favour of the assessee following the ratio of the judgment of the Hon'ble Bombay High Court in the case of NGC Network Asia LLC, 313 ITR 187 (Bom.). Following the aforesaid precedent, the plea of the assessee on this aspect is also upheld. 14. Thus, insofar as Assessment Year 2005-06 is concerned, the appeal of the assessee is allowed and that of the Revenue is dismissed. 15. Now, we may take-up the cross-appeals of the assessee and the Revenue pertaining to Assessment Year 2006-07…

DCIT (It) 3(3)(1), Mumbai vs. Quintiles Inc., Mumbai

In the result, the appeal filed by the Revenue stands dismissed

Bench: Shri P K Bansal & Shri Amarjit Singhassessment Year : 2012-13 Dcit (It)- 3(3)(1) Quintiles Inc.. Mumbai C/O Deloitte Haskins & Sells,Ca, Vs. Tower 3, 27Th-32Nd Floor, India Bulls Finance Centre, Elphinstone Mill Compound, Mumbai 400 013

…f interest u/s. 234B of the Act. After hearing both the parties, we noted that this issue is no more res integra in view of the decision of the jurisdictional High Court in the case of Director of Income-tax (International Taxation) vs. NGC Network Asia LLC 313 ITR 187 (Bom), in which the High Court has clearly held that when a duty was cast on the payer to deduct the tax at source, on failure of the payer to do so, no interest could be imposed on the assessee u/s. 234B. It is not denied that payer in the impugned case was under an obligation to deduct the tax at source but he has not deducted the tax at sou…

Orient Overseas Container Line Limited, Mumbai vs. The Deputy Commissioner of Income Tax (International Taqxation)-3(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed for statistical purpose

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blem/S. Orient Overseas Container V. The Deputy Commissioner Of Line Limited Income Tax (International Icc Chambers, 5Th Floor, Taxation)- 3(3)(2), Saki Vihar Road, Powai, Room No. 11, Scindia House, Opp. Santogen Silk Mills. Ground Floor, Ballard Estate, Mumbai – 400 072 Mumbai – 400 038 Pan No: Aaaco 5679 E

…34C cannot be imposed on the assessee on the failure of payer to deduct tax at source from the payments made to the assessee, in view of the decision of the Hon'ble Jurisdictional High Court in the case of DIT (International Taxation) v. NGC Network Asia LLC [313 ITR 187]. Learned Counsel for the assessee submits that, Assessing Officer did not comply with the directions of the DRP and passed order u/s.142(3) r.w.s. 143(3)(13) without granting advance tax of ₹.22,59,51,875/-, granted short credit for self-assessment tax and TDS of ₹.7,31,46,145/- and ₹.1,011/- respectively. Learned Counsel for the assessee furthe…

Hapag-Lloyd Ag, Mumbai vs. DCIT (It) RG 2(2)(2), Mumbai

The appeal is dismissed

Bench: Shri B.R Baskaran, Am & Shri Ravish Sood, Jm आयकर अपील सं./ I.T.A. No. 1441/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2013-14) Hapag –Lloyd Ag Dcit (It), 2(2)(2), Room No. 1722, 17Th Floor, Air Ndia 1121 & 1122, बिधम/ Building, Nariman Point, Solitaire Corporate Park; Vs. Mumbai – 400 021. Building No. 11, 2Nd Floor, Chakala, Andheri (East), Mumbai – 400 093 स्थामीरेखासं./ जीआइआयसं./ Pan/Gir No. Aafcp5834R (अपीलाथी/Appellant) (प्रत्यथी / Respondent :

…Hapag-Lloyd AG Vs. DCIT(IT), Mumbai – ITA NO. 1441/Mum/2017 1 A.Y. 2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL ‘L’ BENCH, MUMBAI BEFORE SHRI B.R BASKARAN, AM AND SHRI RAVISH SOOD, JM आयकर अपील सं./ I.T.A. No. 1441/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2013-14) Hapag –Lloyd AG DCIT (IT), 2(2)(2), Room No. 1722, 17th Floor, Air ndia 1121 & 1122, बिधम/ Building, Nariman Point, Solitaire Corporate Park; Vs. Mumbai – 400 021. Building No. 11, 2nd Floor, Chakala, Andheri (East), Mumbai – 400 093 स्थामीरेखासं./ जीआइआयसं./ PAN/GIR No. AAFCP5834R (अपीलाथी/Appellant) (प्रत्यथी / Respondent : अपीलाथी की ओर से/Appel…

Aatur Holding P.Ltd, Mumbai vs. DCIT CC 31, Mumbai

Appeal stands dismissed whereas the assessee’s appeal stands partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am

…unt of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del.(SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320],NGC Network Asia LLC [313 ITR 187] Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)].DR relied upon the cases of Devine Holdings Pvt. Ltd. 3.1.We have heard the rival submissions and perused the material before us. We find that in the case of Devine Holdings Pvt. Ltd. Hon’ble Bombay High Court ha…

Aatur Holding P.Ltd, Mumbai vs. DCIT CC 31, Mumbai

Appeal stands dismissed whereas the assessee’s appeal stands partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am

…unt of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del.(SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320],NGC Network Asia LLC [313 ITR 187] Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)].DR relied upon the cases of Devine Holdings Pvt. Ltd. 3.1.We have heard the rival submissions and perused the material before us. We find that in the case of Devine Holdings Pvt. Ltd. Hon’ble Bombay High Court ha…

Aatur Holding P.Ltd, Mumbai vs. DCIT CC 31, Mumbai

Appeal stands dismissed whereas the assessee’s appeal stands partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am

…unt of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del.(SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320],NGC Network Asia LLC [313 ITR 187] Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)].DR relied upon the cases of Devine Holdings Pvt. Ltd. 3.1.We have heard the rival submissions and perused the material before us. We find that in the case of Devine Holdings Pvt. Ltd. Hon’ble Bombay High Court ha…

Orion Travels Pvt. Ltd., Mumbai vs. DCIT Cent. Cir. - 4(3), Cent. Range - 4, Mumbai

In the result, all the appeals of the assessees are treated as allowed for statistical purposes

Bench: Shri B.R. Baskaran (Am)

…unt of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del.(SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320],NGC Network Asia LLC [313 ITR 187] ,Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)].DR relied upon the 3.1. We have heard the rival submissions and perused the material before us. We find that in the case of Devine Holdings Pvt. Ltd. Hon’ble Bombay High Court has held that provisions of section…

Lloyd'S Register Quality Assurance Ltd (India Branch Office), Mumbai vs. ADIT 4(1), Mumbai

The appeals of the assessee are partly allowed

…आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “ एल एल” खंडपीठ खंडपीठ आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई एल एल खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“L”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं, राम एवं राम राम लाल राम लाल लाल नेगी लाल नेगी नेगी, "याियक नेगी "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./389/Mum/2013, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2008-09 वष" आ…

Lloyds Register Quality Assurance Ltd., Mumbai vs. DDIT-Int, Rax.-.4(1), Mumbai

The appeals of the assessee are partly allowed

…आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “ एल एल” खंडपीठ खंडपीठ आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई एल एल खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“L”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं, राम एवं राम राम लाल राम लाल लाल नेगी लाल नेगी नेगी, "याियक नेगी "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं./I.T.A./389/Mum/2013, िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2008-09 वष" आ…

Dimension Data Asia Pacific Pte. Ltd, Mumbai vs. DCIT (It) 2(1)(2), Mumbai

In the result, the appeal of the assessee is partly allowed

Bench: S/Shri Jason P Boaz,(Am) & Saktijit Dey, (Jm) Dimension Data Asia Pacific The Dy. Commissioner Of Pte.Ltd,(Formerly Known As Income Tax (International Datacraft Asia Pte. Ltd), Taxation), 2(1)(2), फनधभ/ C/O Dhruva Advisors Llp, 12Th Fl., 17Th Floor, Air India Building, Discovery Of India Building, Vs. Nariman Point, Dr.Annie Besent Road, Mumbai-400021 Worli, Mumbai-400018 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) : स्थधमी रेखध सं./ Pan : Aadcd4348L अऩीरधथी की ओय से / Assessee By : S/Shri Sunil Moti Lala & Tushar Hathiramani प्रत्मथी की ओय से/Revenue By : S/Shri Jasbir Chauhan & M V Rajguru सुनवधई की तधयीख /Date Of Hearing : 28.4.2017 घोषणध की तधयीख /Date Of Pronouncement : 5.5.2017

…ity on the assessee to pay advance tax. This view of ours is supported by the ratio laid down by the Hon’ble Jurisdictional High Court in the case of 10 Director of Income-tax (International Taxation) v. NGC Network Asia LLC [2009] 222 CTR 85 (Bombay)= (2009) 313 ITR 187 (Bom). In view of the above levy of interest u/s 234B of the Act is unsustainable. This ground is allowed. 8. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 5th May, 2017. sd (JASON P BOAZ) (SAKTIJIT DEY) लेखा सदस्य / Accountant Member न्याययक सदस्य / Judicial Member भुंफई Mumbai; ददनधंक Dat…