Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 197 - AT - Income TaxValidity of Reassessment proceedings - period of limitation to issue notice - scope of amendment to section 149 by Finance Act 2012, which extended limitation for reopening assessment to sixteen years - HELD THAT:- As relying on Brahm Dutt [2018 (12) TMI 832 - DELHI HIGH COURT] the first issue before Hon’ble High Court was, as to whether AY 1998-99 could not have been reopened beyond 31.03.2005 in terms of provisions of section 149 as applicable at relevant time. Hon’ble High court answered in affirmative. The second issue before the Hon’ble High Court was as to whether subsequent amendment to section 149, by Finance Act, 2012, which extended limitation for initiation of reassessment proceedings to sixteen years, could not be resorted to for reopening concluded proceedings in respect of which limitation had already expired/lapsed before amendment became effective. Hon’ble High Court answered in affirmative. DR has placed vehement reliance on the order of ITAT Mumbai in the case of Dilip J. Thakkar [2022 (3) TMI 1307 - ITAT MUMBAI] and the ld. AR has pressed into service judgment of Hon’ble jurisdictional High Court of Delhi in the case of Brahm Dutt (supra) which has binding effect on all the authorities below including this Tribunal. Therefore, binding preposition rendered by Hon’ble jurisdictional High Court (supra) has rightly been followed by the ld. CIT(A). We are unable to see any ambiguity and perversity or any other valid reason to interfere with the findings recorded by the ld. CIT(A) while quashing the reassessment notice u/s. 148 and impugned reassessment order u/s. 147 r.w.s. 143(3) of the Act by relying ratio of the judgment of Hon’ble jurisdictional High Court of Delhi in the case of Brahm Dutt vs. ACIT (supra). Accordingly, ground no.1 of Revenue is dismissed. Income taxable in India - interest income earned by the non-resident assessee from Standard Chartered Bank, New Jersey Foreign Branch - As per provision of section 5(2) of the Act which is charging section for non-resident, Indian income of non-resident is taxable under the provisions of Income Tax Act 1961, and any other income earned outside India is not taxable in India. As per said legal position the interest income earned by the non-resident assessee from Standard Chartered Bank, New Jersey Foreign Branch is not taxable in India as the same has been accrued to non-resident assessee from the deposits in the bank situated outside India and thus the same interest income cannot be deemed as received or deemed to be received in India or accrue or arises or deemed to be accrue or arise in India and thus the ld. CIT(A) was correct and justified in holding that the same was not liable to tax in India in the hands of non-resident Indian assessee. Accordingly, no interference is called for in the conclusion drawn by the CIT(A) on merits and thus the ground no. 2 of Revenue is dismissed.
|