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2016 (3) TMI 829 - ITAT DELHI

2016 (3) TMI 829 - ITAT DELHI - TMI - Amounts received from Indian associated enterprises - whether were in the form of interest or discounting charges? - assessee (“CFSA”), is a company incorporated in Singapore and is a tax resident of Singapore - Held that:- A bare perusal of the observations of AO makes it very clear that he has not at all referred to any RBI Circular, FEMA provision which had bearing on the facts of the case and how the receipt in the hands of assessee took the colour of in .....

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MI 209 - DELHI HIGH COURT) and, therefore, this conclusion cannot be accepted.

We fail to appreciate as to how ld. DRP has drawn the conclusion from the above statement that Indian company is treating this amount as interest. The true nature of transaction cannot alter merely by clubbing the discounting charges under the head ‘financial expenses’. Therefore, this plea raised by ld. CIT(DR) on the basis of observation made by ld. DRP for distinguishing these facts in the current year f .....

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ITA nos. 5260 & 5006/Del/2011 - Dated:- 15-3-2016 - SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND Ms. SUCHITRA KAMBLE : JUDICIAL MEMBER For The Appellant : Shri Rohan Khare and Shri A Srivastava and Shri D. Chopra Advocates For The Respondent : Shri Anuj Arora CIT(DR) ORDER PER S.V. MEHROTRA, A.M: These are assessee s appeals against separate orders passed by the ld. CIT(A), relating to A.Yrs. 2003-04 & 2008-09. Since common issues are involved for adjudication, both the appeals were heard tog .....

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y, which ever was more beneficial to assessee. Assessee had entered into an agreement with Cargill India Pvt. Ltd. ( CIPL ), the assessee s associate, for the rendering of certain administrative and support services relating to treasury and financial activities, whereby CIPL was charged towards the cost of the services (on actual usage basis), as per the method provided in the said agreement, on a cost plus 5% mark up. 3. During the course of assessment proceedings the AO show caused the assesse .....

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y, as a part of its business, it draws, makes, accepts, endorses, discounts, executes and issues promissory notes, bill of exchange etc. It was further pointed out that CIPL incorporated under the Indian Companies Act, was, inter alia, engaged in the business of import and export of agricultural commodities and processed foods. On few occasions CFSA had purchased bill of exchange/ demand promissory note from CIPL. The assessee in detail explained its modus operandi which has been reproduced in t .....

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scounting, the pricing of the discounting is based on the Libor plus margin. The transaction from the perspective of the assessee is explained as below: - It purchases the bill of exchange, for which discounting agreement is entered- and this mentions the face value, the date of acceptance of the bill and maturity date. - The discounting agreement also has a mention of the pricing of the product and tenor of the bill. - The discounting agreement has a mention of the face amount, discount amount .....

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buying and the discount value. - This transaction can be compared with a transaction that involves a loan equal to the net amount given by the assessee and repayment of this loan along with interest to CFSA, after the sale proceeds are received. Therefore, prima facie, the discount is nothing but the interest only. The money advanced by the. assessee is used for the purpose of business carried on by CIPL/ CGTIPL. 4. The AO, after considering detailed submissions and after examining the definitio .....

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terest from India without payment of tax. Ld. DRP in para 7 to 7.3 (A.Y. 2003-04) has observed as under: 7. A perusal of the whole transaction leads to certain unanswered questions. (i) What is the expertise of Cargill India, 'which is not available with Cargill International, Geneva for the purchase of Argentine Soyabean from the internation.al market? (ii) When the supplier of goods as it appears is also a group company, why the transaction was routed through Cargill India? (iii) Whether a .....

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company for funds for which it approached the assessee for discounting. (vii) No comparative studies of the market has been submitted by the assessee where the Indian company approached for discounting of bills. (viii) No reason has been given as to why the bills were not discounted by the Indian company in the Indian market from any bank or financial institutions or any other company engaged in similar business. (ix) Where was the money invested by the Indian company after receiving it from th .....

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assessee have been furnished before the AO or before this Panel to show the treatment of this transaction in their books of accounts. 7.1 In fact, the whole transaction is a colorful device by the assessee company to earn interest from India without payment of taxes. As the assessee cannot simply deposit funds in India to earn higher rate of interest then in other countries where its funds are lying idle it has entered into these transactions. The assessee company pays money to the Indian compa .....

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company and takes a promissory note of '100 to be received by it from another group company after one year. The Indian company invests '90 in Indian market and claims '10 as expenditure (interest payment). The non-resident buyer, who allegedly purchased the goods from the Indian company makes the payment to the assessee of '100 instead of making payment to the Indian company. The Indian company pays the cost of goods to the other company from whom the so called goods were purcha .....

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ntage of its wide group network to route the transactions will not change the true nature of the transaction. The mere fact that the assessee received its interest from another group company other than Cargill India makes no difference to the transaction. The Indian company while recording the above transaction terms this payment as interest and claims deduction, whereas the some amount is termed as discount by the assessee resulting into no tax payment by the entire group in India. Similar obse .....

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fully submits: 1. That the learned Assistant Director of Income Tax, Circle- 1 (1), International Taxation, New Delhi (hereinafter referred to as 'Learned AO') and Hon'ble Dispute Resolution Panel ('the DRP') have erred on the facts and in circumstances of the case and in law in initiating re-assessment proceedings based on mere change of opinion as there were no material facts on record giving rise to any valid reasons to believe that any income has escaped assessment. Accor .....

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n 2(28A) of the Act and Article 11 of the Double Taxation Avoidance Agreement between India and Singapore ('the treaty'). 2.2 That on the facts and circumstances of the case and in law, the learned A - erred in misinterpreting / misconstruing the transaction of without recourse discounting of Promissory Notes ('PN') / Bills of Exchange ('BE') as a loan by the appellant to Cargill India Private Limited ('CIPL') by relying upon the irrelevant and un-contextual facts .....

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g the fact that the same is in the nature of business income and cannot be brought to tax in the absence of any Permanent Establishment ('PE') in India as per provisions of Article 5 of the treaty . 2.5 That on the facts and circumstances of the case and in law, the learned AO erred in not following the principle of judicial discipline by completely ignoring the favorable order of Hon'ble Delhi ITAT passed in the appellant's own case based on same set of facts for AY 2004-05 and .....

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e assessee and therefore provision of section 9(l)(v)(c) are not applicable. 3. That the learned AO has erred in facts and in law in levying interest amounting to ₹ 12,431,624 under section 234B of the Act by completely ignoring the fact that no advance tax was payable by the appellant. 4. The learned AO has erred on the facts and the circumstances of the case and in law by initiating penalty proceedings u/s 271(l)(c) against the appellant for furnishing inaccurate particulars or for failu .....

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/2010 and 580/Del/2010 and also by the decision of Tribunal in the case of Cargill TSF Asia Pte Ltd. for A.Ys. 2005-06, 2006-07 and 2007-08 vide ITA nos. 581/Del/2010, ITA no. 3880 & 3057/Del/2010. He referred to para 7 of the order in assessee s own case, wherein it has been held as under: 6. We have duly considered the rival contentions and gone through the record carefully. In the case of Cargil Clobal Trading India (P) Ltd., the IT AT has made the following observations: "8. We have .....

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ssue is what is the nature of t is discount? According to the assessee, the atoresald discount is not in the. nature of interest and hence is not disallowable under section 40(a)(i) 0 the Act whereas the Assess.ing Officer has held that this sum is in the nature of interest under 'section 2(28A) of the Act. Section 2(28A) of the Act provides as under:- "Interest" means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or o .....

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en that interest means either sum payable in respect of any money borrowed or debt incurred. In the instant case, it is not a case of debt incurred or moneys borrowed. In fact, here is a case where the assessee has merely discounted the .sale consideration receivable on sale of goods. It is not a case where any money has been borrowed or debt has been incurred. It is also not a case where any service fee or either charge has been paid in respect of money borrowed or debt incurred or in respect o .....

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n India. Thus where the legislature was conscious of the fact that even the discount of bills of exchange is to be included within the definition of interest, the same was basically so' provided for. However, under the scheme of Income-tax Act the word "Interest" defined under section 2(28A) does not include the discounting charges on discounting of bills of exchange. Though the circular no. 65 was rendered in relation to deduction of-tax under section 194A, in respect of payment t .....

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by the bank on its own behalf and not on behalf of the supplier. For such cases of immediate discounting the net payment made by the bank to the supplier is in the nature of a price paid for the bill. Such payment cannot technically be held as including any interest and therefore, no tax need be deducted at source from such payment by the bank. The decision relied by the Assessing Officer in the case of Vijay Ship Breaking Corp. (supra) has been reversed by the Hon'ble Supreme Court as repor .....

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erest paid by the assessee. Rather after deducting discount the assessee received net amount of the bill of exchange accepted by the purchaser. CFSA not having any permanent establishment in India, is not liable, to tax in respect or such discount earned by it and hence the assessee is not under obligation to deduct tax. at source under section 195 of the Act. Accordingly, the same amount cannot be disallowed by invoking section 40(a)(i) of the Act." 7. This finding of the ITAT in the case .....

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also. Taking into consideration the detailed order of the Learned CIT(Appeals), impugned in the appeals in the light of Hon'ble Delhi High Court's decision, we are of the view that no 'interference is called for. Hence, both the appeals are dismissed". 9. He further pointed out that the Tribunal s order in the case of Cargil Global Trading (P) Ltd., has been upheld by the Hon ble Delhi High Court in 335 ITR 94, wherein in para 5 to 7, Hon ble High Court has observed as under: 5. .....

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rted and bills are drawn by the assessee. It is the said discounted charges which were claimed by the assessee as expenses under section 37(1) of the Act. The discounting facilities offered by CFSA to the assessee after charging its aforesaid discounted commission are not questioned by the Revenue. The only objection was that on this amount remitted by the assessee to CFSA, the assessee was to deduct tax at source (TDS) under section 195 of the Act and since it was not done, invoking the provisi .....

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cluding negotiable instruments, commercial paper, etc. Accordingly, as a part of its aforesaid business, it draws, makes, accepts, endorses, discounts, executes and issues promissory notes, bill of exchange, etc. Further, CFSA does not have a permanent establishment (PE) in terms of articles 5 of the India Singapore Treaty ("the Treaty" or the "DTAA"). 10. Ld. A/R further pointed out that in the case of assessee, Hon ble Delhi High Court, following the decision in the case of .....

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which was treated and considered as interest paid. The High Court has not agree with the Revenue and has held that bill discount cannot be equated and treated as interest paid and therefore the tax at source was not liable to be deducted. The present appeals are directed against recipient Cargill Financial Services Asia Pvt Ltd. who had entered into the transaction/agreement with Cargill Global Trading Pvt. Ltd. The issue being identical and squarely covered by the decision of this Court in the .....

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lier years and, therefore, the issue requires reconsideration. He has filed detailed written submissions, which are reproduced hereunder: SUBMISSIONS OF REVENUE ON SPECIFIC ASPECTS 1. The Revenue emphatically relies on the assessment orders of the relevant assessment years as well as directions of the DRP. 2. Without prejudice to these, following additional submissions are made. 3. These submissions below are ONLY on specific aspects. On balance aspects, oral submissions during the hearing, the .....

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ter alia, on the orders of the Hon'ble ITAT in the assessee's own case in AYs 2005-06, 2006- 07, 2007-08 (combined order dated 19.08.2011) which have also been confirmed by the Hon'ble HC, Delhi (combined order dated 19.11.2012). The copies of these orders have also been provided by Ld. AR in paper book and / or during the hearing. 6. It may kindly be seen from the said combined orders of the Hon'ble ITAT and Hon'ble HC that these have addressed the main issue whether or not .....

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Financial Services P. Ltd (CFSPL). At Para 6, page 5 of the order dated 19.08.2011, the Hon'ble ITAT notes that "There is no disparity of facts between both the assessees." Accordingly it has quoted extensively from the said order dated 19.08.2011 in the case of CFSPL starting at page 5 of its combined order till page 13 of its order. 8. Further, it is seen from the said ITAT order in the case of CFSPL (provided by Ld. AR) that, this order in turn relies on the order of ITAT in ca .....

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pecially "role of Cargill Inc., role of buyer Cargill IntI. SA, RBI Circulars, FEMA provisions etc. were not presented before the Ld. ITAT which are very material for the case". 11. To put the issues in perspective, the Ld. DRP notes at Para 7 of its order/ directions: "In fact, the whole transaction is a colorable device by the assessee company to earn interest from India without payment of taxes. As the assessee cannot simply deposit funds in India to earn higher rate of interes .....

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ng of invoice by the Indian company . 12. The thrust of Revenue's present submission, is that none of the above referred orders of Hon'ble ITAT (i.e., earlier orders of ITAT in the case of the assessee itself, or its orders in the cases of CFSPL & CGTIPL which have been relied and quoted by the ITAT in the case of the assessee) have considered and adjudicated the entire set of facts and circumstances. This has been very briefly highlighted above (at para 9,10,11) and has been detaile .....

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est earning activity in hands of the NR assessee while at the same time minimizing the tax liability in the hands to the supporting group Indian concern. 13. For sake of clarity and brevity, the said facts and circumstances that have not been considered I adjudicated by the Hon'ble ITAT in its earlier orders, as culled out from the Ld. DRP's directions, are as under: Para/page of Ld. DRP's order Issue Remarks, if any Page 4, para 3 At the outset, DRP has put on record the non-coopera .....

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alysed by Ld. DRP. Para 6.1 gives the issues/ aspects which are unanswered and effectively questions the very genuineness of whole scheme of transactions used by the assessee along with its group concerns The findings of the DRP have to be read with the findings of the AO at page 22 of the assessment order (Gross margin of the assessee on sale is 0.05%. In comparison, the charges suffered by the Indian concern are large 5.75%. This ensures that max amount remains tax free in hands of assessee wh .....

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scount by the assessee resulting into no tax payment by the entire group in India." Page 10-11 Page 9-9.1, Page 12 Last two para Page 17 Page 9,12 Assessee has placed heavy reliance on discounting being without recourse. This has been analysed in light of RBI regulations and facts of the case and has been found to be of no help to the assessee and is also without supporting evidence. Page 11, Para 9.2-9.3 Page 13 Para (iv)&(v),(i) Page 14 Para (ii) The "paper transactions" of .....

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te arrangement among group concerns and cannot be compared with banking transactions and CDs. 14. The Revenue submissions remain on the same lines as above. RELIANCE ON judgment in Raghubir Singh [19891178 ITR 548 (SC) 15. It is Revenue's humble submission and contention that the Tribunal could differ from its earlier decision, if such a need arose, in view of decision of the Supreme Court in the case of Union of India v. Raghubir Singh [1989] 178 ITR 548. The Supreme Court in the case of Ra .....

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ubmissions above emphasize that the matter is covered by the said point (ii). CONCLUSION 11. The undersigned is committed to provide any further clarification that the Hon'ble Bench may desire. 13. In the rejoinder ld. counsel has filed detailed submissions, which are also reproduced hereunder: Brief facts While framing assessment for the subject year, the Ld. AO has characterized the discounting charges received by the Appellant on account of discounting of Bills of exchange / demand Promis .....

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Asia Pte Ltd- In Liquidation) would like to highlight that the issue under consideration has already been adjudicated in favor of the Appellant in Appellant's own case vide the following orders: DIT v Cargill TSF Asia Pte Ltd A Y 2005-06, A Y 2006-07 & A Y 2007-08 (Delhi HC) (ITA No. ITA No. 62112012, ITA No. 63212012 and ITA No. 62412012) Cargill TSF Asia Pte Ltd A Y 2005-06, A Y 2006-07 & A Y 2007-08 (Delhi IT AT) (IT A No. 5811De1l2010, 3880IDell2010 and 30571De1l2010) DIT v Carg .....

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to appellant (Cargill TSF Asia Pte Ltd) are not in the nature of interest and thus, no disallowance U/S 40(a)(i) was warranted. This order has been accepted by the Department and no further appeal was preferred. The facts and the issue involved in the above mentioned assessment years are identical to. the facts and issue involved in the years in question i.e. whether discounting charges is akin to interest income as defined u/s 2(28A) of the Act, taxable as per the provisions of the Act as well .....

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page 15, para 7.8 of the assessment order that certain vital facts remained to be considered/ presented to the Hon'ble Tribunal in the earlier years especially "role of Cargill Inc., role of buyer Cargill Intl. SA, RBI Circulars, FEMA provisions etc. were not presented before the Ld. ITAT which are very material to the case". Referring to the AO's order points to the fact that the ITAT order referred in the above allegation is that of Cargill Global Trading India Private Limit .....

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complied with. Neither tax authority nor any other authority has alleged any irregularity in the transaction as per applicable Indian law/regulation. It is also respectfully submitted that the questions that have been raised by the Learned Department Representative giving a flavour that certain vital facts regarding the role of the parties involved, RBI Circulars and FEMA provisions, which were material were not presented before the IT AT which were material to the case. These comments are obvi .....

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ayed by the respective enterprises was not presented has no bearing on the issue. This is nothing but a misguided effort on behalf of the revenue to confuse the issue. At this juncture, it is also respectfully submitted that it is a settled proposition of law that the revenue cannot dictate to the taxpayer businessmen as to how to conduct its affairs and the question of commercial expediency cannot be raised by the revenue at this stage or at any stage prior. Hence, objections raised are of no c .....

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any material on record to prove the same. 'At the outset, it is submitted that the trade transaction are actual international trade which is even recognized by RBI as Merchanting Trade. There is actual movement of goods from one country to other through Ship, thus, the transaction cannot be termed as sham transaction or colorful transaction. The Appellant is not a party to the buy-sell agreement but it understands that the whole transaction is routed through banking channel and permitted by .....

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nt is not a party, thus, it cannot be asked to provide such detail. Moreover, the contention put forth by the Ld. DR that "The scheme of transaction put through by the group is mainly to give color of bill discounting to interest earning activity in hands of the NR Appellant while at the same time minimizing the tax liability in the hands to the supporting group Indian concern" is also not acceptable as the Appellant is not claiming that the income is not taxable in its hands. It merel .....

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mmunicated to the assessee that not only the said transaction was examined by assessing officer of the Indian group company but also by the Transfer Pricing officer wherein the same was duly accepted to be at arm's length price. It is respectfully reiterated that these reservations in the reply of the D.R. are again dangerously inclining towards questioning the commercial expediency of the transaction. It is also respectfully submitted that this is beyond the powers and scope vested in the a .....

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submission i.e. Arguments culled out from the DRP's order Contention on non-cooperation of the assessee in respect of submitting complete trail of documents and limited information available by the assessee: The Appellant had duly submitted all the vital documents pertaining to bill discounting vis a vis invoice raised by Indian group company on offshore buyer of goods, promissory note issued by offshore buyer of goods, discounting agreement between the Appellant and Indian group entity. Mor .....

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e Appellant. The finding that the Indian company records t!:e transaction as payment of interest and the appellant terms the same as discount is incorrect. Both the Indian group companies as well as the. Appellant terms the said transaction as discount transaction only. Reference is placed on the TP study of CIPL (extract of which is quoted on Page 14 of the DRP order) that the said transaction is discounting charges. Hence, both the Indian company and the Appellant have shown the said transacti .....

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Trading India Private Limited Critical observations: The queries raised are from the stand point of Indian group companies and could not have been responded by the Appellant in this case. The Appellant had merely carried on a normal business transaction and has earned business income which by virtue of DTAA is not taxable in India. A perusal of the questions raised by the Dispute Resolution Panel are clearly indicative of the fact that these questions are not relevant to be raised now as these q .....

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e submission of the assessee addresses this point, but on an illustration to be given, the attention of the Hon'ble Tribunal is invited into the question No. VI which reads as under: "(vi) What was the need of the Indian company for funds for which it approached the assessee for discounting? " This is in itself would show that the revenue is questioning the commercial expediency of the transaction which it is not permissible. It is thus accordingly prayed that the written submissio .....

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not been considered. However, the Appellant would like to submit that all the facts of the transaction were duly presented before various authorities arid after consideration of necessary facts, the Hon'ble HC and ITAT have adjudicated the matter in favor of the Appellant. Without prejudice to the above, it is also submitted that in the Appeal filed by the assessee and the grounds raised the question that has been raised is regarding the characterization of the discounting charges and that i .....

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it thinks fit. Thus, on a plain reading of the relevant provision of law, the power to pass such orders as the Tribunal thinks fit can be exercised only in relation to the matters that arise in the appeal and it is not open to the Tribunal to adjudicate on a question which is not in dispute and which does not form the subjectmatter of the appeal. The word 'thereon' is a particularly significant and has been interpreted by many High Courts and Supreme Court to circumscribe the jurisdictio .....

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s not the subjectmatter of the appeal before it. The Tribunal thus can give a finding that the deduction/income does not belong to the relevant assessment year/years, but though it may incidentally find that the deduction/income relates to another assessment year, it cannot give a finding that the deduction/income belongs to another specified year. There is, however, an exception to the general rule that the jurisdiction of the Tribunal is confined to the subject-matter of appeal. The exception .....

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Now we proceed to consider the alleged distinguishing features pointed out by ld. DR in his detailed submissions, reproduced above. In order to appreciate the submissions of ld. CIT(DR), we have to first consider the brief background of the case. 16. The assessee is a company incorporated under the laws of Singapore and is tax resident of Singapore. It had entered into an agreement for cost sharing with Indian party for rendering certain services. Besides this, assessee had also discounted the b .....

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m by the buyer of their goods for the assessee. For this purpose the assessee entered into a discounting agreement with Cargill India Pvt. Ltd. for purchase of PN at a discount specifying the details of PN to be discounted face value, discounted value, rate of discount, name of the company who owed PN, date of maturity of PN, bank debts for payments etc. The CIPL endorsed the PN in favour of the assessee on without recourse basis. The said endorsement of PN signifies that all risks and rewards o .....

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ia approach the assessee for discounting of the PN issued to them by the buyers of goods; - The Assessee purchases the PN at a discount on 'without recourse' basis and pays the discounted amount to the Cargill India; The assessee earns income on maturity or subsequent sale of PN which Is In the nature of business income' It may be worthwhile to mention here that purchase of PN on a 'without recourse' basis implies that: - Assessee purchases the PN from the Cargill India - Ass .....

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ers the same in its own behalf. 17. In the backdrop of aforementioned facts the income earned by the assessee has been considered as discounting charges in its hands and this issue has been settled by the decision of Hon ble Delhi High Court in the case of Cargill Global Trading Pvt. Ltd. (supra). Thus, the issue stands settled by Hon ble Jurisdictional High Court and the SLP filed by the department in the case of Cargill Global Trading India Pvt. Ltd. has been dismissed. The decision of Cargill .....

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f not of the nature of interest however that order is passed by the Ld. IT AT wherein complete facts were not presented and specially facts relating to the assessee (Cargill TSF Asia Pte Ltd), role of Cargill Inc., role of buyer Cargill IntI. SA., RBI Circulars, FEMA provisions etc. were not presented before the Ld. IT AT which are very material for the case. Also, it becomes an undisputed fact that the interest income (discounting charges as per the nomenclature) arises in India, as is also men .....

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wed and used, for the purposes of a business or profession earned on In India The amount borne by the CIPL I CGTIPL would be taxable in the hands of the assessee as per provisions of Section 5(2) of the I.T. Act. Therefore, it is held that the income Is taxable in the hands of the assessee as interest income. 19. A bare perusal of the observations of AO makes it very clear that he has not at all referred to any RBI Circular, FEMA provision which had bearing on the facts of the case and how the r .....

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per RBI regulations within a stipulated time. Ld. DRP has further observed that as per RBI Regulations, every exporter of goods has to get the inward remittance within a stipulated time in India in foreign currency. It is further observed that, accordingly, the foreign buyer has to remit the fund to the Indian customer and the Indian customer was obliged to recover the money due to it in foreign currency from the supplier within the time specified by the RBI. 20. Ld. DRP further observed in par .....

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without recourse . We do not find any substance in the observations of ld. DRP on this basis. The issue before us is whether the discounting charges, received by assessee on maturity of promissory note on realization of proceeds from the buyer, were in the nature of discounting charges or interest. The RBI regulations cannot decide the true nature of receipt in the hands of assessee. Had there been any violation of RBI regulation in the whole transaction, then action would have been initiated ag .....

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e, this conclusion cannot be accepted. Further, ld. CIT(DR) has referred to para 7 and 7.2 of ld. DRP s order, which has been reproduced by us earlier. In para 7.2, ld. DRP has, inter alia, observed that the Indian company, while regarding the above transaction terms the payment as interest and claims deduction, whereas the same amount is termed as discount by the assessee, resulting into no tax payment by the entire group in India. In the submissions made by assessee,, reproduced earlier, it ha .....

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r which discounting charges are debited in the books of Indian group entities As per the information provided by the Indian group entities, they have recorded the discounting charges under the head Financial Expenses in their profit and loss accounts. 21. We fail to appreciate as to how ld. DRP has drawn the conclusion from the above statement that Indian company is treating this amount as interest. The true nature of transaction cannot alter merely by clubbing the discounting charges under the .....

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