TMI Blog2019 (6) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... acquiring those shares will have to be apportioned - this ground of appeal is restored to the file of Assessing Officer for deciding the issue afresh Income accrued in India - Taxability in India - Exclusion of income of foreign branches situated in countries where there is double tax avoidance agreement based on Article 7 of the respective agreements which provides that business profits is to be taxed in respective countries - HELD THAT:- The issue has been decided against the assessee by the ITAT in assessee s own case for A.Y. 2011-12 income of the foreign branches of the assessee shall also be taxable in India, that is, it would be included in the return income filed by the assessee in India and whatever taxes have been paid by the branches in the other countries credit of such taxes shall be given. Disallowance of broken period interest - HELD THAT:- We find that identical issue has been decided in favour of the assessee by Hon'ble Supreme Court in the case of Citibank [ 2008 (8) TMI 766 - SUPREME COURT] and HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] following these decisions ITAT in assessee s own case for A.Y. 2011-12 allowed the claim of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptable in as much as he inter alia found that funds of the assessee are in a common pool and that where particular investment is made out of common pool, nexus of borrowed fund and investment cannot be ruled out. The Assessing Officer also drew adverse inference from computation by the assessee of interest expenses relatable funds deployed towards eligible business as per provisions of section 36(1)(viii) of the Act. Thereafter the Assessing Officer proceeded to computing disallowance as per Rule 8D and made impugned disallowance for A.Y. 2015-16. 5. In both assessment years learned CIT(A) upheld the action of the Assessing Officer following his earlier orders. Against these orders the assessee is in appeal before us. 6. Learned Counsel of the assessee has submitted that identical issue was decided in favour of the assessee by the ITAT Delhi Bench in the case of Punjab National Bank (ITA No. 5480/Del/2014). 7. Learned Counsel of the assessee further submitted that this issue was decided partly in favour of the assessee by the ITAT in assessee s own case for A.Y. 2011-12 in ITA no. 4505/Mum/2016 and others, wherein issue was remitted back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p Investment Ltd. (supra) and the other decisions and pass the order in accordance with laws. Needless to say that Assessing Officer shall grant adequate opportunity to the assessee before passing the order. 9. Upon hearing both counsel and perused the record, we deem it appropriate to remit this issue to the file of the Assessing Officer with same direction as above. 10. Another common issue raised in assessee s appeals is that learned CIT(A) ought to have allowed assessee s claim in respect of exclusion of income of foreign branches situated in countries where there is double tax avoidance agreement based on Article 7 of the respective agreements which provides that business profits is to be taxed in respective countries. It has further been submitted that learned CIT(A) failed to note that Notification No. 91 of 2008 relied upon by ITAT does not apply to business profit but only to other sources of income. 11. On this issue learned Counsel of the assessee fairly conceded that the issue has been decided against the assessee by the ITAT in assessee s own case for A.Y. 2011-12 in ITA No. 4504/Mum/2016 vide para 19 of the said order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign branch that was taxed in the foreign country, the relief of tax will be allowed based on the taxed paid in the foreign country and thereby granted part relief to the assessee. We have noted that similar ground of appal was raised by Revenue in appeal for A.Y. 2009-10 and the coordinate bench of the Tribunal in ITA No. 2480/Mum/2015 dated 17.02.2017 passed the following order: 24. We have carefully considered the submission and perused the record we find that the ITAT in the aforesaid decision has duly considered the said notification referred by the Ld. Counsel of the assessee. We may carefully refer to the contents of the said notification as under; In exercise of the powers conferred by sub-section (3) of section 90 of the Income-Tax Act, 1961 (43 of 1961), the Central Government hereby notifies that where an agreement entered into by the Central Government with the Government of any country outside India for granting relief to tax, or as the case may be, avoidance of double taxation, provides that any income of a resident of India may be taxed in the other country, such income shall be included in his total income chargeable to tax in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterpretation given by Ld A.R on the notification issued by the Government. Accordingly, we set aside the order of learned CIT(A). 21. Another common issue raised relates to disallowance of provisions of wages arrear. 22. On this issue learned Counsel of the assessee stated that this issue has been decided in favour of the assessee by the ITAT in assessee s own case for A.Y. 2010-11 (ITA No. 5020/Mum/2019) vide para 46 to 47 of the said order as under : 46. Ground No.1 relates disallowance of provision for wage arrears. The ld. AR for the assessee submits that this ground of appeal is covered in favour of the assessee by the decision of Tribunal in assessee s own case for assessment year 2009-10 in ITA. No. 2480/M/2015. The ld. DR for the revenue fairly conceded the submissions of the ld. AR for the assessee. 47. We have considered the submissions of the ld. representatives of the parties and perused the record. We have noted that the assessee raised the identical ground of appeal in assessment year 2009-10 and the Tribunal vide order dated 17.02.2017 in ITA 2480/M/2015 deleted the similar disallowance. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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