9911796707
TMI Blog2022 (8) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)- 42 ['CIT (A)'] has erred in disregarding the principles of natural justice and holding that relief could be claimed only by filing revised return for which statutory timeline has already expired. While doing so, the Ld. CIT(A) has erred in: 1.1 disregarding the CBDT circular No 14 (XL-35V1955 wherein the CBDT has clarified that Department must not take advantage of ignorance of assessee to collect more tax than what is legitimately due; 1.2 not comprehending Article 265 of the Constitution of India which provides that no tax shall be levied or collected except by the authority of law; 1.3 holding that demand raised is only on account of wrong reporting a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t service income of Rs. 2,84,40,475/- received from Heidrick and Struggles India Pvt. Ltd. considered as taxable 40% and also levied consequential surcharge, education cess and interest u/s 243 B and Section 234C of the Act vide order dated 14/06/2019. 4. As against the order dated 14/06/2019 passed by CPC, Bangalore, the assessee filed a rectification application. The CPC vide order dated 22/08/2019, increased demand of Rs. 4,08,16,220/- and not granted TDS credit of Rs. 2,78,10,114/- which was allowed u/s 143(1) of the Act. The assessee has filed one more rectification application on 15/10/2019, the CPC vide its rectification order dated 24/10/2019 raised a demand of Rs. 1,06,73,750/- by taxing the service receipt of Rs. 2,84,40,475/- at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed u/s 139(5) of the Act. The relief sought by the assessee is not found in the return of the income filed by the assessee, therefore, the Ld. A.O and CIT(A) were right in holding against the assessee. 9. We have heard the parties, perused the material on record and gave our thoughtful consideration. It is admitted fact that the assessee has filed its return claimed service income of Rs. 2,84,40,475/- received from Heidrick and Struggles Pvt. Ltd. as income from other sources. As per India US Tax Treaty, the service rendered by the assessee do not specify the 'make available clause of India US Tax Treaty' . It is also emerges from the record that for the Assessment Year 2018-19 a similar adjustment i.e. taxing a service receipt 40% w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for some reason or other; (b) Freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs." 11. Further, in the case of Madhabi Nag Vs ACIT (ITA No. 512/K0I/2015) (Kolkata), the Hon'ble Tribunal held that the revenue authorities ought not to have rejected the application u/s 154 of the Act on the ground that the assessee has not filed the revised return of income. Further in the case of CIT v. Bharat General Reinsurance Co. Ltd. 81ITR 303 (Del) (Hon'ble Delhi High Court), the Hon'ble High Court held that merely because the assessee wrongly included the income in its return for a particular year, it cannot confer jurisdiction on the department to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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