Gujarat High Court
Director Of Income Tax (International ... vs Adani Enterprises Ltd....Opponent(S) on 16 October, 2014
Author: Ks Jhaveri
Bench: Ks Jhaveri, K.J.Thaker
O/TAXAP/1023/2014 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL NO. 1023 of 2014
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DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION)....Appellant(s)
Versus
ADANI ENTERPRISES LTD....Opponent(s)
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Appearance:
MR NITIN K MEHTA, ADVOCATE for the Appellant(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE KS JHAVERI
and
HONOURABLE MR.JUSTICE K.J.THAKER
Date : 16/10/2014
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE KS JHAVERI) This appeal is admitted to consider the following substantial questions of law:
[A] Whether the Appellate Tribunal was right in law and on facts in holding that the assessee company was not liable to deduct tax at source under section 196C read with section 115AC on the interest payable on FCCBs to the non-resident bond holders by holding that the interest payment by the assessee to non-resident investors cannot be said to have accrued or arisen in India and it also cannot be said that this interest income can be deemed to have accrued or Page 1 of 3 O/TAXAP/1023/2014 ORDER arisen in India ?
[B] Whether the ITAT was right in law and on facts in holding that the factsof this case were not similar to the case of Performing Rights Society vs. CIT (106 ITR 11(SC),by merely stating that the income had been received in India by the agents of the assessee and ignoring the fact that the Hon'ble Supreme Court had categorically held that the income in this instant case had in fact accrued in India and no question arose whether it should be 'deemed to accrue or arise in India ?"
[C] Whether the ITAT was right in law and on facts in travelling to section 9 which deals with the deeming clause in spite of the fact as per the provisions of section 5(2) as interpreted by Hon'ble Supreme Court in Performing Rights Society Case (supra) the income clearly accrued/arose in India and hence there was no ground for invoking the provisions of section 9 in this case ?
[D] Whether the Appellate Tribunal has substantially erred in holding that interest paid by the assessee company to non-resident investors is specifically excluded from the deeming provision as per section 9(1)(v)(b) inspite of the fact that in the present case Page 2 of 3 O/TAXAP/1023/2014 ORDER the funds raised through FCCBs have not been used for the purposes of business or profession carried on by the appellant company outside India ?
To be heard along with Tax Appeal No. 698/2013.
(K.S.JHAVERI, J.) (K.J.THAKER, J) mandora Page 3 of 3