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TMI Blog2016 (2) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed Cross-Objections(CO. s)for the above mentioned Assessment Years(AY. s. ). As the issues involved in the appeals and the CO. s. are common, so, we are adjudicating them by a single common order. ITA/3688/Mum/2009 & CO 244/Mum/2009, AY. 2000-01 : Assessee, a non-resident company, is engaged in the business of banking. It filed its return of income on 29. 11. 2000, declaring income of Rs. 2, 91, 30, 08, 800 /-. The AO completed the assessment, u/s. 143(3) of the Act, on 21. 03. 2003. A notice u/s. 148 of the Act was issued for re-opening the assessment. The assessee objected the re-opening. The AO finalised the assessment on 31. 12. 2007, u/s. 147 r. w. s. 143(3)of the Act, determining the income of the assessee at Rs. 2, 78, 27, 09, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter considering the submissions of the assessee and the assessment order, the FAA held that action taken by the AO u/s. 147 of the Act was justified, that his predecessor had, while deciding the appeals for the AY. s. 2000-01 and 2001-02, decided the identical issue against the assessee. 'Following the rule of consistency', he upheld the re-opening. On merits, he held that in the earlier AY. s. his predecessor had adjudicated the issue of ICMED in favour of the assessee, that there was no change in the facts of the case. Finally, he deleted the addition made by the AO. 4. Before us, the Departmental Representative(DR)supported the order of the FAA with regard to the issue of reassessment and relied upon the order of the AO for taxability o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of assessment the AO required the assessee to give details of total commission received by the foreign branches of the assessee bank on international credit cards issued by them where the transactions were completed in India by the card holders and the cards were honoured by the branches of the assessee bank or branches of any other bank in India. The AO was of the view that whatever income arose in or from India to any foreign branch of the assessee is also taxable in India. The assessee could not furnish any details; at the same time it did not deny that no income arose from the transaction in India on credit cards issued by its foreign branches. The AO, therefore, estimated the income. The AO stated that commission income from car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only be the income received by the Indian branch and such commission income being already included as an acquiring bank. The income to the foreign branch from the credit given to its card holders outside India cannot be taxed in the hands of the Indian branch since it is not arising in India and also it cannot be attributed to the assets and activities of the Indian branch as is required under art. 7 of DTAA. Therefore, there is no need to further estimate any income. He accordingly deleted the addition. XXXXXXXXXX 48. We have considered the rival submissions. We are in agreement with the finding of the learned CIT(A). Where the foreign branch has issued credit card and even if the transaction takes place in India, the credit is given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CO. /129/Mum/2015 AY. 2003-04: 7. Grounds of appeal filed by the AO. s. and grounds of CO filed by the assessee for the above mentioned two AY. s. are identical to the grounds of AY. 2000-01-the only difference is the amount involved. For the AY. s. 2001-02 and 2003-04, the AO had disallowed Rs. 33, 66, 213/- and Rs. 50, 75, 990/-respectively under the head ICMED. The assessee challenged the addition as well as re-opening of the assessment for both the years before the FAA. Following the orders of the earlier years, he decided the issue of re-opening assessments against the assessee. However, the issue of taxability of ICMED was decided in favour of the assessee. 7. 1As the facts and circumstances of the both the AY. s. are identical to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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