TMI Blog2023 (7) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, no inference can be drawn that the profit of the assessee company got diverted. Hence the ground of appeal of the assessee is allowed. - I.T.A. Nos. 564 & 565/Ahd/2022 - - - Dated:- 9-6-2023 - Shri Anil Chaturvedi, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Assessee : Ms. Amrin Pathan, A.R. For the Respondent : Shri Sanjeev Jain, CIT D.R. ORDER PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER : Both the appeals are filed by the Department against the order passed by the Ld. Commissioner of Income Tax (Appeals)-12, (in short Ld. CIT(A) ) Ahmedabad, in Appeal No. CIT(A)/Ahmedabad- 12/10140/2017-18 CIT(A)/Ahmedabad-12/10133/2018-19 vide order dated 19.19.2022 passed for Assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C, UAE has two wholly own subsidiaries in Democratic Republic of Congo (DRC) namely Rubamin SPRL and Rubaco SPRL. RFZC, UAE is a trading company whereas the companies located in Congo namely Rubamin SPRL and Rubaco SPRL are engaged in the business of manufacturing cobalt concentrates from cobalt ore and copper concentrate. During the course of assessment, the Assessing Officer observed that during the search action on the assessee s premises, incriminating documents have been found which indicate that Rubamin FZC, UAE is a fa ade created to shift profits out of India. The Assessing Officer further observed that details of the aforesaid transactions have been given in detail in the assessment order for A.Y. 2014-15. Accordingly, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e/shell entity created solely for the purpose of shifting of its profit out of India. Grounds of appeal 1 2 are allowed. 6. The Department is in appeal before us against the aforesaid relief afforded by the Ld. CIT(Appeals). The Ld. D.R. relied upon the observations made by the Assessing Officer in the assessment order. In response, the Counsel for the assessee submitted that the case of the assessee is squarely covered in favour of the assessee by the decision of Hon ble ITAT in assessee s own case for A.Y. 2011-12 to 2013-14 2014-15. Copy of the order of ITAT has been placed before us for ready reference. 7. We have heard the rival contentions and perused the material on record. We observe that this issue has been decided in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also a reality that the assessee has taken a dividend. In a situation of holding the profit of RFZC attributable to the DRC companies, the assessee would have taken the dividend which would have been subject to tax its hands in the same manner as the dividend from RFZC is taxable. Accordingly we hold that position of the assessee in either case cannot be detrimental to it. 64. As we have decided the issue that profit attributable to RFZC belongs to DRC companies, then the question of the colourable device used by the assessee for diverting its profit does not arise. 65. We are also conscious to the fact that the profit attributable to RFZC with respect to the transactions carried out by it with the company based in China namely Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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