TMI Blog2014 (7) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... India and against this order no subsequent appeal has been preferred by the Department in this year - the addition made by the AO in the proceedings u/s 154 is highly debatable and is beyond the scope of rectification u/s 154 - an error which has to be established by a long drawn process of reasoning on points where there may be considerable two opinions, then it can hardly be said to be erroneous apparent on the face of the record – thus, there was no merit in the grounds raised by the Revenue. Interest u/s 234B of the Act – Held that:- CIT(A) has held that in the quantum order passed u/s 143(3), for the same assessment year, he has already held that levy of interest u/s 234B cannot be levied - this is beyond the scope of the proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for A. Yr. 1995-96 and 1996-97 [U/s. 143(3)] without appreciating that those have not been accepted by the Department. 2. Facts in brief: The assessee is a partnership firm based in U.K., which is mainly engaged in practice of law. For the assessment year 1996 97, it had filed its return of income on 30th October 1996, declaring nil income. The assessee has been providing professional services to certain clients whose operation extended to India. Such professional services involved visits to India of the firm s partner and staff members, however, no office or place of work was established by the firm. The said return of income was subject to scrutiny and the assessment order was passed under section 143(3), vide order dated 25th Mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the invoice and the confirmation given by Serum Institute of India Ltd. it is clear that during the previous year 1995-96 no work was carried out by the appellant in India for Serum Institute of India Ltd. In my order dated March 13, 2003 in ppellant's case In Appeal No. CIT(A)XXXI/ITO(IT)1(2)/IT-239/02-03 for the assessment year 1995-96, I have held that the fees received for services rendered outside India is not liable to tax in India. Similarly, in appeal filed by the appellant against the assessment order for the concerned assessment year 1996-97, in my appellate order No. CIT(A)XXXI/DCIT Cir 2(6)/IT-10/99-00/03-04 dated 30th May, 2003 I have held that only the income related to services rendered in India is taxable in India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In support of this contention, he strongly relied upon the decision of the Hon'ble Supreme Court in M. Chockalingam and M. Meyyappan v/s CIT, [1963] 48 ITR 34 (SC) and Punjab High Court in Lala Rajeshwar Pershad v/s ITO, ]1959] 36 ITR 492 (Punjab). That apart, he submitted that the learned Commissioner (Appeals), during the quantum proceedings, has already held that the work done by the assessee to an Indian, client wholly outside India is not taxable in India, therefore, for this year, the issue stands concluded as the Department has not preferred any second appeal against this order. Though he admitted that similar view taken by the learned Commissioner (Appeals) in the assessment year 1995 96, was reversed by the Tribunal (since rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , unless a notice is given to the assessee and a reasonable opportunity of hearing is given. This contention was also raised before the learned Commissioner (Appeals) which has been treated by him as infractuous as he has allowed the assessee s appeal on merit. On this ground alone, the impugned addition which has been made in the rectification proceedings under section 154, cannot be sustained. Further, as pointed out by the learned Senior Counsel, it is seen that in the quantum proceedings, the learned Commissioner (Appeals) has held that no income has been received by the assessee, which is taxable in India and against this order no subsequent appeal has been preferred by the Department in this year. In the earlier year the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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