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2015 (6) TMI 1211 - HC - Income TaxTaxability in India - whether SAS BV (IGN BV) was not a conduit for the assessee or a sham entity - as per AO no commercial expediency in setting up via media companies and the only aim of this arrangement was to avoid assessee's direct taxability in India - HELD THAT:- In the present appeal, the revenue is seeking to tax the very same income which has already been subjected to tax in the hands of SAS BV (IGN BV). This, even after the Tribunal by order [2010 (5) TMI 894 - ITAT MUMBAI] has already held that SAS BV (IGN BV) is not a conduit or a sham entity and they are chargeable to tax on the income earned on account of their advertisement activity. In the above view, the impugned order holds that there can be no occasion to tax the same income in the hands of the respondent-assessee when the same has been subjected to tax in the hands of M/s.SAS BV (IGN BV). So, bearing in mind that the revenue has accepted the order of the Tribunal in case of SAS BV (IGN BV). It is relevant to note that, for the Assessment Year 2000-01 and 2002-03 on the same issue in respect of SAS BV (IGN BV), the revenue had challenged in this Court the order of the Tribunal holding that SAS BV (IGN BV) is not a conduit of Star Limited, the respondent-assessee herein [2013 (3) TMI 847 - BOMBAY HIGH COURT].This Court on 13 March 2013 dismissed the revenue's appeal for the Assessment Years 2000-01 and 2003-03. No substantial question of law Accrual of income - advertisement revenues - cash system of accounting as adopted by the assessee - HELD THAT:- This issue stands concluded in favour of the assessee by the decision by this Court in the case of Pfizer Corporation v/s C.I.T. [2002 (11) TMI 80 - BOMBAY HIGH COURT] wherein it is held that a non-resident has an option to follow either the cash system or mercantile system of accounting. It is contended on behalf of the revenue that, in view of the decision of the Supreme Court in Standard Motors v/s C.I.T., [1993 (2) TMI 9 - SUPREME COURT] it is not open to the non-resident to follow the cash system of accounting. We find that the Apex Court has in fact not touched upon this aspect and has observed that the method of accounting adopted in the facts of the case are irrelevant and thus there is no occasion to examine the same. No fault can be found with the impugned order. Accordingly, question No.2 cannot be entertained as it does not give rise to a substantial question of law. Interest under Section 234A - Tribunal held that as no income has accrued or arisen to the assessee, interest under Section 234A was not chargeable to assessee - HELD THAT:- . The aforesaid finding of the Tribunal is based on having held that the income arising on account of adversement sales is taxable in the hands of SAS BV (IGN BV) for the reasons indicated while considering question No.1. This finding of fact is not shown to be perverse. Thus, no substantial question of law arises with regard to question No.3. Accordingly, question No.3 cannot be entertained. Interest under Section 234C not chargeable - HELD THAT:- We find that the impugned order of the Tribunal has merely followed the decision of this court in D.I.T. v/s NGC Network Asia, [2009 (1) TMI 174 - BOMBAY HIGH COURT]. Moreover, once it is held that no income has arisen or accrued in the hands of respondent assessee, the question of payment of any interest does not arise. Accordingly question No.4 does not raise any substantial question of law. Thus not entertained.
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