IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

The appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

43 8\n(SC)\nMAK Data (supra) ruling is in the context\nof a case where income was voluntarily\noffered pursuant to a survey proceeding\nunder section 133A of the Act. No\nbonafide explanations were provided\nunder Explanation 1 of section 271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe

IBM AUSTRALIA LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

43 8\n(SC)\nThe CIT(A) has noted that the\nAssessee was cognizant about the\nnature of payments received by it but\nchose not to offer the same to tax.\n(Page 17 of the CIT(A) order)\nunder section 133A of the Act. No\nbonafide explanations were provided\nunder Explanation 1 of section 271(1

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\n\nPage 44 of 56\nObservation of the CIT(A)\n[2008] 175 Τaxman 184 (Punjab and\nHaryana HC) by drawing reference to\nSC's ruling in MAK Data P. Ltd. vs\nCIT-II [2013] 38 taxmann.com 43 8\n(SC)\nThe CIT(A) has noted that

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nThe CIT(A) has contended that mere\nacceptance of tax liability will not\npreclude the levy of the penalty on the\nassessee.\nThe

IBM OSTERREICH INTIONATIONALE BUROMASCHINEN GESELLSCHAFT MBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

43 8\n(SC)\n\nMAK Data (supra) ruling is in the context\nof a case where income was voluntarily\noffered pursuant to a survey proceeding\nunder section 133A of the Act. No\nbonafide explanations were provided\nunder Explanation 1 of section 271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

u/s 273B was applied\nbased on the facts of that case.\n(Page 17-18 of the CIT(A) order)\nMAK Data (supra) ruling is in the context\nof a case where income was voluntarily\noffered pursuant to a survey proceeding\nunder section 133A of the Act. No\nbonafide explanations were provided\nunder Explanation 1 of section 271(1

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nThe CIT(A) has contended that mere\nacceptance of tax liability will not\npreclude the levy of the penalty on the\nassessee.\nThe

IBM ISRAEL LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM DEUTSCHLAND GMBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor

IBM CHINA HONG KONG LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nRebuttal to the CIT(A)'s observations\nProvisions of section 195(2)/ 197 of the\nAct are not mandatory and therefore the\nAO cannot be expected to seek recourse\nto the same.\nTherefore

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

271(1)(c)\nof the Act in respect of the income being\nsurrendered. The only argument made by\nthe Assessee was that it voluntarily\noffered receipts to tax and therefore,\npenalty cannot be levied.\nIn the case of IBM, the matter in respect\nof taxability of secondment expenses\nwhich is a debatable issue if not\nconsidered in favor