Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1388 - AT - Income TaxTaxability of Inland Haulage Charges (‘IHC’) - HELD THAT:- Tribunal following the order of Coordinate Bench in assessee's own case [2018 (3) TMI 1832 - ITAT MUMBAI] decided the issue in favour of the assessee. Taxability of Freight Charges for Transportation of Cargo through Feeder Vessels - assessee submitted that the Assessing Officer and DRP have erred in holding that freight charges for transportation of cargo through feeder vessels is income taxable in the hands of assessee under section 44B - HELD THAT:- The transportation of cargo through feeder vessels is inextricably linked to the international transportation of cargo. Therefore, freight charges for transportation of cargo through feeder vessels are covered by Article -9 of India-France DTAA. Assessee pointed that the issue is squarely covered by the order of Tribunal for the assessment years 2012-13 to 2014-15 and the order for assessment year 2015-16. The ld.Authorized Representative of the assessee further submitted that the Hon'ble Bombay High Court in assessee's own case in appeal filed by Department in Income Tax Appeal [2012 (8) TMI 1211 - BOMBAY HIGH COURT] has decided this issue in favour of assessee and has dismissed the appeal of Revenue. Permanent Establishment of the assessee in India - No material is brought on record to suggest that the transaction with Indian entity is not at arm’s length. On the contrary assessee has demonstrated that transaction is as per APA therefore, no further adjustment is required. Respectfully following the decision of Co-ordinate Bench in assessee’s own case for assessment year 2015-16 grounds No.11 to 13 are allowed. Taxing interest on ECB @ 10% instead of tax rate of 5%(+ surcharge @5% and cess @3%) - assessee pointed that rectification application has already been filed before the AO on 25/02/2021, which is still pending for final disposal - HELD THAT:- AO is directed to decide the rectification petition of the assessee dated 25/02/2021 expeditiously, preferably within a period of six months from the date of receipt of this order. The ground No.15 of appeal is allowed for statistical purpose. Claim made in additional grounds of appeal - assessee in its return of income has offered to tax FTS @ 10% + surcharge and educational cess - The income which has been offered to tax by the assessee in return of income, now by way of additional ground assessee is claiming it non-taxable. It is a well settled principle that true income of the assessee should be taxed and only legitimate taxes should be collected from the assessee. [ Re: Balmukund Acharya Vs. DCIT [2008 (12) TMI 88 - BOMBAY HIGH COURT]]. The assessee by way of additional evidences has supported the contentions raised in additional grounds of appeal. It is not a case where the assessee has raised altogether a fresh issue which was neither part of the income tax return or assessment proceedings. The assessee has changed its stand from offering income to tax in the return of income to claim the income as non- taxable under the provisions of DTAA. In the light of above, we are inclined to admit additional grounds of appeal, as well as additional evidences to substantiate additional grounds. Since, this issue require fresh determination from a different dimension, we deem it appropriate to restore the same to Assessing Officer for de-novo examination considering the additional evidences filed by the assessee and after affording reasonable opportunity of hearing/opportunity to make submissions, in accordance with law. The additional grounds of appeal are allowed for statistical purpose.
|