M/s. Bharti Airtel Limited v. Addl. CIT

DCIT Circle-5(1), Kolkata vs. S K Sarawagi and Company Pvt Ltd, Kolkata

Appeals are partly allowed

Bench: The O/O Pcit-2, Kolkata 23.01.2024 Certificate Of Filing 2Nd Appeal Was Received From The O/O Pr. Cit-2, Kolkata 24.01.2024 Necessary Hardcopies Of Documents/ Paper/ Details Required For Filing 2Nd Appeal Before The Hon'Ble Itat, Kolkata Were Collected & Prepared. 25.01.2024 2Nd Appeal Was Filed

…ed by the Finance Act 2012 w.e.f. 01. 04. 02. We find no merit in Revenue's instant grievance since various judicial precedents (2016) 157 ITD 132(Ahd), Tega Industries Ltd. vs. DCIT (ITA_1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) take note of the foregoing legislative amendment to hold that a corporate guarantee is not an international transaction u/s 92B of the Act. We decline the Revenue's instant grievance and main appeal ITA No.474/KOl/2018 therefore.” 7. 1. However, for the immediately preceding year (AY 2006-07), the appellant's contention was accepted on diff…

DCIT, Circle-5(1), Kolkata vs. S K Sarawagi and Company Private Limited, Kolkata

Appeals are partly allowed

Bench: The O/O Pcit-2, Kolkata 23.01.2024 Certificate Of Filing 2Nd Appeal Was Received From The O/O Pr. Cit-2, Kolkata 24.01.2024 Necessary Hardcopies Of Documents/ Paper/ Details Required For Filing 2Nd Appeal Before The Hon’Ble Itat, Kolkata Were Collected & Prepared. 25.01.2024 2Nd Appeal Was Filed

…erted by the Finance Act 2012 w.e.f. 01.04.02. We find no merit in Revenue's instant grievance since various judicial precedents (2016) 157 ITD 132(Ahd), Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) take note of the foregoing legislative amendment to hold that a corporate guarantee is not an international transaction u/s 92B of the Act. We decline the Revenue's instant grievance and main appeal ITA No.474/KOl/2018 therefore.” 7.1. However, for the immediately preceding year (AY 2006-07), the appellant’s contention was accepted on differe…

DCIT, Circle - 11(1), Kolkata vs. M/S. Graphite India Ltd., Kolkata

In the result, considering the discussions made above, the appeal filed by the Revenue is partly allowed and the cross objection filed by the assessee are dismissed

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

…erted by the Finance Act 2012 w.e.f. 01.04.02. We find no merit in Revenue's instant grievance since various judicial precedents (2016) 157 ITD 132(Ahd), Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) take note of the foregoing legislative amendment to hold that a corporate guarantee is not an international transaction u/s 92B of the Act. We decline the Revenue's instant grievance and main appeal ITA No.474/KOl/2018 therefore.” 7.1. However, for the immediately preceding year (AY 2006-07), the appellant’s contention was accepted on differe…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…n record to indicate that intra AE international transaction has some impact on the profits, incomes, losses or assets. Most importantly, it has been argued that the Hon'ble ITAT, Delhi, in a ruling in the case of M/s. Bharti Airtel Limited Vs Addl. CIT[2014] 64 SOT 50 (URO) / 43 taxmann.com 50(Delhi) adjudicated on transfer pricing issues arising from the issuance of a Corporate Guarantee to associated enterprises among others in this case, the taxpayer, an Indian company, provided a guarantee to a third-party bank on behalf of its foreign subsidiary for which it did not charge a fee. The taxpayer contended as i…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…n record to indicate that intra AE international transaction has some impact on the profits, incomes, losses or assets. Most importantly, it has been argued that the Hon'ble ITAT, Delhi, in a ruling in the case of M/s. Bharti Airtel Limited Vs Addl. CIT[2014] 64 SOT 50 (URO) / 43 taxmann.com 50(Delhi) adjudicated on transfer pricing issues arising from the issuance of a Corporate Guarantee to associated enterprises among others in this case, the taxpayer, an Indian company, provided a guarantee to a third-party bank on behalf of its foreign subsidiary for which it did not charge a fee. The taxpayer contended as i…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

Bench: Shri S.S.Godara & Dr. A.L.Saini

…n record to indicate that intra AE international transaction has some impact on the profits, incomes, losses or assets. Most importantly, it has been argued that the Hon'ble ITAT, Delhi, in a ruling in the case of M/s. Bharti Airtel Limited Vs Addl. CIT[2014] 64 SOT 50 (URO) / 43 taxmann.com 50(Delhi) adjudicated on transfer pricing issues arising from the issuance of a Corporate Guarantee to associated enterprises among others in this case, the taxpayer, an Indian company, provided a guarantee to a third-party bank on behalf of its foreign subsidiary for which it did not charge a fee. The taxpayer contended as i…

DCIT, Circle - 11(1), Kolkata vs. M/S. Graphite India Ltd., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos.472 & 474 & C.O Nos.64 & 66/Kol/2018 ("नधा"रण वष" / Assessment Years: 2007-08 & 2008-09) Dcit, Circle-11(1), Kolkata Vs. M/S. Graphite India Ltd. 31, Chowringhee Road, Kolkata- 700016. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacc0457C (Appellant) .. (Respondent/Cross-Objector)

…serted by the Finance Act 2012 w.e.f 01.04.02. We find no merit in Revenue’s instant grievance since various judicial precedents (2016) 157 ITD 132(Ahd), Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) take note of the foregoing legislative amendment to hold that a corporate guarantee is not an international transaction u/s 92B of the Act. We decline the Revenue’s instant grievance and main appeal ITA No.474/KOl/2018 therefore. 7. Next comes assessee’s former Cross-Objection CO.64/Kol/2018 pertaining to the twin assessment years. Its forme…

DCIT, Circle - 11(1), Kolkata vs. M/S. Graphite India Ltd., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos.472 & 474 & C.O Nos.64 & 66/Kol/2018 ("नधा"रण वष" / Assessment Years: 2007-08 & 2008-09) Dcit, Circle-11(1), Kolkata Vs. M/S. Graphite India Ltd. 31, Chowringhee Road, Kolkata- 700016. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacc0457C (Appellant) .. (Respondent/Cross-Objector)

…serted by the Finance Act 2012 w.e.f 01.04.02. We find no merit in Revenue’s instant grievance since various judicial precedents (2016) 157 ITD 132(Ahd), Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) take note of the foregoing legislative amendment to hold that a corporate guarantee is not an international transaction u/s 92B of the Act. We decline the Revenue’s instant grievance and main appeal ITA No.474/KOl/2018 therefore. 7. Next comes assessee’s former Cross-Objection CO.64/Kol/2018 pertaining to the twin assessment years. Its forme…

DCIT, Circle - 1(1), Kolkata vs. M/S. Mcnally Bharat Engineering Company Limited, Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos. 147&109 & C.O Nos.35 & 36/Kol/2018 ("नधा"रण वष" / Assessment Years: 2010-11 & 2011-12) Dcit, Circle-1(1), Kolkata Vs. M/S. Mcnally Bharat Engineering Ltd. M/S Mcnally Bharat Engineering Co. Company Limited, 4, Mangoe Lane, Kolkata – 700001. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcm9443R (Appellant) .. (Respondent/Cross-Objector)

…of the amount of guarantee itself; respectively. Suffice to say, it transpires at the outset that the CIT(A) has followed various judicial precedents i.e Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) that a corporate guarantee does not amount to an international transaction u/s 92B of the Act. Learned coordinate bench(s) have also taken into consideration section 92B Explanation by the Finance Act 2012 w.e.f. 01.04.02. We therefore decline Revenue’s arguments in support of its first substantive ground raised in both the instant appeals.…

DCIT, Circle - 1(1), Kolkata vs. M/S. Mcnally Bharat Engineering Company Limited, Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am I.T.A Nos. 147&109 & C.O Nos.35 & 36/Kol/2018 ("नधा"रण वष" / Assessment Years: 2010-11 & 2011-12) Dcit, Circle-1(1), Kolkata Vs. M/S. Mcnally Bharat Engineering Ltd. M/S Mcnally Bharat Engineering Co. Company Limited, 4, Mangoe Lane, Kolkata – 700001. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcm9443R (Appellant) .. (Respondent/Cross-Objector)

…of the amount of guarantee itself; respectively. Suffice to say, it transpires at the outset that the CIT(A) has followed various judicial precedents i.e Tega Industries Ltd. vs. DCIT (ITA 1912/Kol/2012 dated 21.09.16) & Bharti Airtel Ltd. vs. Addl. CIT (2014 64 SOT 50 (URO) that a corporate guarantee does not amount to an international transaction u/s 92B of the Act. Learned coordinate bench(s) have also taken into consideration section 92B Explanation by the Finance Act 2012 w.e.f. 01.04.02. We therefore decline Revenue’s arguments in support of its first substantive ground raised in both the instant appeals.…

DCIT, Circle-8(1), Kolkata vs. M/S. Gujarat Nre Coke Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

Bench: Sri J. Sudhakar Reddy& Sri Aby T. Varkey)

…2010-11 M/s. Gujarat NRE Coke Ltd. existed. While doing so, he relied on the judgement of the Hon’ble Delhi Bench of Income Tax Appellate Tribunal (‘ITAT’ for short) in the case of Bharti Airtel Ltd. Vs. ACIT in I.T.A. No.: 5816/Del/2012 for AY 2008-09 [2014] 64 SOT 50 (URO) and other cases. This Bench of the Tribunal in the case of DCIT vs. M/s. Manaksia Limited in ITA No. 208- 209/Kol/2018 order dated 30.11.2018 at page 1-5 held as follows: 2. “It emerges at the outset that the Revenue raises identical twin substantive grounds in both these appeals. Its first substantive ground is that CIT(A) has erred in law…

DCIT, Circle-8(1), Kolkata vs. M/S. Gujarat Nre Coke Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

Bench: Sri J. Sudhakar Reddy& Sri Aby T. Varkey)

…2010-11 M/s. Gujarat NRE Coke Ltd. existed. While doing so, he relied on the judgement of the Hon’ble Delhi Bench of Income Tax Appellate Tribunal (‘ITAT’ for short) in the case of Bharti Airtel Ltd. Vs. ACIT in I.T.A. No.: 5816/Del/2012 for AY 2008-09 [2014] 64 SOT 50 (URO) and other cases. This Bench of the Tribunal in the case of DCIT vs. M/s. Manaksia Limited in ITA No. 208- 209/Kol/2018 order dated 30.11.2018 at page 1-5 held as follows: 2. “It emerges at the outset that the Revenue raises identical twin substantive grounds in both these appeals. Its first substantive ground is that CIT(A) has erred in law…

DCIT, Central Circle - 1, Kolkata vs. M/S. Rohit Ferro Tech Ltd., Kolkata

Appeals are dismissed

Bench: Shri S.S. Godara & Shri, M. Balaganesh

…n record to indicate that intra AE international transaction has some impact on the profits, incomes, losses or assets. Most importantly, it has been argued that the Hon'ble ITAT, Delhi, in a ruling in the case of M/s. Bharti Airtel Limited Vs Addl. CIT(2014) 64 SOT 50 (URO) / 43 taxmann.com 50(Delhi) adjudicated on transfer pricing issues arising from the issuance of a Corporate Guarantee to associated enterprises among others. In this case, the taxpayer, an Indian company, provided a guarantee to a third-party bank on behalf of its ITA Nos. 262 &263/K/2018 A.Ys. 2009-10 & 2010-11 Rohit Ferro Tech Ltd. Page 6 fo…

DCIT, Central Circle - 1, Kolkata vs. M/S. Rohit Ferro Tech Ltd., Kolkata

Appeals are dismissed

Bench: Shri S.S. Godara & Shri, M. Balaganesh

…n record to indicate that intra AE international transaction has some impact on the profits, incomes, losses or assets. Most importantly, it has been argued that the Hon'ble ITAT, Delhi, in a ruling in the case of M/s. Bharti Airtel Limited Vs Addl. CIT(2014) 64 SOT 50 (URO) / 43 taxmann.com 50(Delhi) adjudicated on transfer pricing issues arising from the issuance of a Corporate Guarantee to associated enterprises among others. In this case, the taxpayer, an Indian company, provided a guarantee to a third-party bank on behalf of its ITA Nos. 262 &263/K/2018 A.Ys. 2009-10 & 2010-11 Rohit Ferro Tech Ltd. Page 6 fo…