Income Tax Appellate Tribunal - Ahmedabad
Shell Global Solutions International ... vs The Deputy Director Of Income Tax (Int. ... on 13 September, 2017
M.A. Nos. 43 to 46/Ahd/2017
Assessment Year : 2007-08 to 2010-11
Page 1 of 4
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD 'D' BENCH, AHMEDABAD
[Coram: Pramod Kumar, AM and S.S. Godara, JM]
M.A. Nos.43 to 46/Ahd/2017
(In ITA Nos.2933/Ahd/2011, 2841/Ahd/2012, 486/Ahd/2014 & 273/Ahd/2015 respectively)
Assessment Year: 2007-08 to 2010-11 respectively
Shell Global Solutions International B.V. .......................Applicant
C/o. BSR & Associates LLP,
902 & 903, Commerce House V,
Near Vodafone House, Prahlad Nagar,
Corporate Road, Ahmedabad-380051
[PAN : AAICS 3589 H]
Vs.
Deputy Director of Income-tax ................. Respondent
International Taxation-I,
Ahmedabad
Appearances by:
SN Soparkar & Parin Shah for the applicant
RP Maurya for the respondent
Date of concluding the hearing : 12.09.2017
Date of pronouncing the order : 13.09.2017
O R D E R
Per Pramod Kumar, AM:
1. By way of these applications, the assessee-applicant has pointed out certain errors in the order dated 17.11.2016 passed by the Tribunal.
2. Learned Senior Counsel for the assessee points out that while the main grievance in the appeal for Assessment Years 2007-08 to 2010-11 was disposed of by the Tribunal, there were certain other small grounds of appeal which have been inadvertently left out. His short prayer is that the order dated 17.11.2016 be recalled for the limited purpose of disposing of these grounds also. The grounds, which have remained to be disposed of, are said to be as follows:-
M.A. Nos. 43 to 46/Ahd/2017 Assessment Year : 2007-08 to 2010-11 Page 2 of 4 AY : 2007-08 Ground No.1.1. - Reimbursement of expenses amounting to INR 49,28,754 - The appellant submitted to the Hon'ble Tribunal that the expenses were mere reimbursements in relation to travel and stay expenses and relying on various judicial precedents the same were not taxable in India. The relevant submission in relation to the reimbursement of expenses filed during the hearing is enclosed at page No.17 to
24.
Ground No. 1.2 - Levy of interest under section 234B of the Act - This ground pertains to levy of interest u/s 234B of the Act which was heard by the Hon'ble Tribunal in Appellant's own case AY 2004-05. 2005-06 and 2009-10 and the learned counsel relied on the same. Further, the Appellant is very thankful to the Hon'ble Members for allowing the similar ground in the Appeal No. 2554/A/2014, 2555/A/2014 and 2556/A/20I4. Relevant order attached for your reference at Page No. 25 to 31. Ground No. 3 - Initiation of penalty proceedings under section 271(1)(c) of the Act - This ground pertains to initiation of penalty proceedings u/s 271(1)(c) of the Act, the Appellant prays before the Hon'ble Tribunal to pass directions as per their discretion.
AY : 2008-09 Ground No.5 - Initiation of penalty proceedings under section 271(1)(c) of the Act - This ground pertains to initiation of penalty proceedings u/s 271(1)(c) of the Act, the Appellant prays before the Hon'ble Tribunal to pass directions as per their discretion.
AY : 2009-10 Ground No.2 - Profit attribution to the project office amounting to Rs.45,80,841/- - This ground pertains to the Profit attribution to the project office for which the Appellant had used three years margins to arrive at the Arm's length. The learned Counsel discussed this ground during the course of hearing and requested the Hon'ble Members to decide the issue on the merits of the case.
Ground No. 4 - Initiation of penalty proceedings under section 271(1)(c) of the Act - This ground pertains to initiation of penalty proceedings u/s 271(1)(c) of the Act, the Appellant prays before the Hon'ble Tribunal to pass directions as per their discretion.
AY : 2010-11 Ground No.2 - Whether the software provided by the Appellant is taxable as Royalty in India - This ground pertains to the adjustment made in relation to the payments for Software Royalty. The Appellant treated the said amounts as non-taxable under Article 12 of the India-Netherlands Tax Treaty. The relevant submission in relation to software royalty filed during the hearing is enclosed at Page No.17 to 31. Ground No. 3 - Levy of interest under section 234B of the Act -The third ground not adjudicated by the Hon'ble Tribunal pertains to levy of interest u/s 234B which was heard by the Hon'ble Bench in Appellant's own case AY 2004-05, 2005-06 and 2009-10 and the learned counsel relied on the same. Further, the Appellant is very thankful to the Hon'ble Members for allowing the similar ground in the Appeal No. 2554/A/2014, 2555/A/2014 and 2556/A/2014. Relevant order attached for your reference at Page No.32 to 38 M.A. Nos. 43 to 46/Ahd/2017 Assessment Year : 2007-08 to 2010-11 Page 3 of 4 Ground No. 4 - Initiation of penalty proceedings under section 271(1)(c) of the Act - The fourth ground not adjudicated by the Hon'ble Tribunal pertains to initiation of penalty proceedings u/s 271(1)(c) of the Act, the Appellant prays before the Hon'ble Tribunal to pass directions as per their discretion.
3. Learned Departmental Representative does not dispute the submissions so made by the learned Counsel and agrees that these grounds of appeal have not actually been disposed of by the Tribunal in its order dated 17.11.2016 (supra).
4. In view of the above discussion, it is noticed that an inadvertent error, by not disposing of certain grounds of appeal, has actually crept in. Therefore, we deem it appropriate to recall the impugned order dated 17.11.2016 for the limited purpose of disposing of these grounds of appeal as set out above. We further directed the Registry to post the matters for hearing on 20th September 2017. As this date has been pronounced in the open Court and has been fixed as agreed to by the parties, there is no need to issue notice in this regard.
5. In the result, Miscellaneous Applications filed by the assessee are allowed.
Pronounced in the open court today on the 13th day of September, 2017.
Sd/- Sd/-
S.S. Godara Pramod Kumar
(Judicial Member) (Accountant Member)
Ahmedabad, the 13 th day of September, 2017
bt*
Copies to: (1) The appellant
(2) The respondent
(3) Commissioner
(4) CIT(A)
(5) Departmental Representative
(6) Guard File
By order
TRUE COPY
Assistant Registrar
Income Tax Appellate Tribunal
Ahmedabad benches, Ahmedabad