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

reassessment proceedings. IT(IT)A Nos.487 to 504/Bang/2024 & IT(IT)A Nos.541 to 546/Bang/2024 IBM Canada Limited & Others Page 31 of 56 Observation of the CIT(A) Rebuttal to the CIT(A)’s observations - Reference to Explanation 3 to section not file a return under section 139 of the 271(1)(c) of the Act was upheld Act 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

reassessment proceedings. IT(IT)A Nos.487 to 504/Bang/2024 & IT(IT)A Nos.541 to 546/Bang/2024 IBM Canada Limited & Others Page 31 of 56 Observation of the CIT(A) Rebuttal to the CIT(A)’s observations - Reference to Explanation 3 to section not file a return under section 139 of the 271(1)(c) of the Act was upheld Act basis

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nThe CIT(A) has contended that mere\nacceptance of tax liability will not\npreclude the levy of the penalty on the\nassessee.\nThe CIT(A) has relied

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

The appeals of the assessees are allowed

reassessment\nproceedings/\nduring the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nAirlines Ltd. VS Commissioner of\nIncome Tax [2022] 144 taxmann.com\n221 (SC) page 112-141 of case law\ncompilation wherein the SC (at page 117)\nhas dealt with

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

The appeals of the assessees are allowed

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\n\nThe CIT(A) has contended that mere\nacceptance of tax liability will not\npreclude the levy of the penalty on the\nassessee.\nThe CIT(A) has relied

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\nReference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\nIn addition to the above, legal\nsubmissions, it is submitted that IBM\nIndia has reported such receipts in 3CEB\nExplanation 3 refers to the term\n'reasonable cause'. Reliance

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

reassessment\nproceedings/ during the course of\nreassessment proceedings.\n\n- Reference to Explanation 3 to section\n271(1)(c) of the Act was upheld\n(Page 10/11 of the CIT(A)'s order)\n\n- The CIT(A) has contended that mere\nacceptance of tax liability will not\npreclude the levy of the penalty on the\nassessee