TMI Blog2018 (6) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same is upheld. - Decided in favor of assessee. - ITA No. 5157/Del/2015 - - - Dated:- 7-6-2018 - Shri R. K. Panda, Accountant Member And Smt. Beena A. Pillai, Judicial Member Appellant by : Sh. Rakesh Kumar, Sr.D.R. Respondent by: Sh. Tarandeep Singh, CA ORDER Per Beena A. Pillai, Judicial Member Present appeal has been filed by Revenue against the order dated 20th May, 2014 passed by Ld. CIT (A) 11, New Delhi for Assessment Year 2006-07 on the following grounds: 1. Whether the Ld.CIT(A), on the facts and in circumstances of the case, has erred in deleting disallowance of an amount of ₹ 140.19 lakhs made by the A.O. u/s 14A, as the assessee has claimed deduction of expenses in relating to income w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and long term capital gain which suffers DDT/STT are fully exempt in the hands of the tax payer but dividend income from joint venture with OMIFCO, Oman which may accrue to it, assessee is not effectively paying any tax on this income either in the Source Country or in India. 2.1. A.O. therefore computed the expenses under S.14A r.w. Rule 8D by including investments in OMIFCO, Oman. 2.2. Aggrieved by the order of Ld.AO assessee preferred appeal before Ld.CIT(A). Ld.CIT(A) by placing reliance on the orders of his predecessor for A.Y. 2008-09 and 2009-10, deleted the investments made by assessee in Oman Company for the purposes of computing disallowance u/s 14A r.w. Rule 8D. 3. Aggrieved by the order of Ld.CIT(A) assessee preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,000 2. National Commodity Derivatives Exchange Ltd. 7,20,000 3. Dividends on investment in Mutual Funds 28,67,049 4. Godavari Fertilizer Chemicals Ltd. Exempted dividend received from 80,01,000 Companies 1,74,20,049 Income from PE in Oman 197872800 Total amount: 21,53,44,324/- 5.2. He placed reliance upon the submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficial to the assessee entitled to benefits of the DTAA. Thus, where the income is taxable under the Act but is exempt under the DTAA, tax under the Act is not leviable thereon. The Ld. AR submitted that in the instant case the dividend received by the assessee from OMIFCO, Oman through its PE is chargeable to tax in India under the head Income from other sources and forms part of the total income and after such inclusion the rebate of taxes has to be allowed from the total taxes in terms of Section 90(2) of the Act read with Article 25 of the Indo-Oman, DTAA which the AO has done. It was submitted that consequently the provisions of Section 14A are not applicable to dividend received from OMIFCO, Oman in as much as the income is included ..... X X X X Extracts X X X X X X X X Extracts X X X X
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