Smt. Deivanayagam Maruthini, CHENNAI v. DDIT, CHENNAI

ITA 170/CHNY/2012 | 2008-2009
Pronouncement Date: 28-02-2012 | Result: Allowed

Appeal Details

RSA Number 17021714 RSA 2012
Assessee PAN AANPM2669L
Bench Chennai
Appeal Number ITA 170/CHNY/2012
Duration Of Justice 1 month(s) 2 day(s)
Appellant Smt. Deivanayagam Maruthini, CHENNAI
Respondent DDIT, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-02-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 28-02-2012
Date Of Final Hearing 28-02-2012
Next Hearing Date 28-02-2012
Assessment Year 2008-2009
Appeal Filed On 25-01-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH CHENNAI BEFORE SHRI ABRAHAM P. GEORGE ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY JUDICIAL MEMBER I.T.A. NO. 170/MDS/2012 (ASSESSMENT YEAR : 2008-09) SMT. DEIVANAYAGAM MARUTHINI N0.2 3K III FLOOR ATKINSON PALACE JOTHI VENKATACHALAM STREET VEPERY CHENNAI - 600 007. PAN : AANPM2669L (APPELLANT) V. THE DEPUTY DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) CHENNAI - 600 034 . (RESPONDENT) I.T.A. NO. 171/MDS/2012 (ASSESSMENT YEAR : 2008-09) SHRI EASSUWARAN DEIVANAYAGAM N0.2 3K III FLOOR ATKINSON PALACE JOTHI VENKATACHALAM STREET VEPERY CHENNAI - 600 007. PAN : AAIPD0682P (APPELLANT) V. THE DEPUTY DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) CHENNAI - 600 034 . (RESPONDENT) APPELLANTS BY : SHRI N. DEVANATHAN ADVOCATE RESPONDENT BY : SHRI ANIRUDH RAI CIT-DR SHRI K.E.B. RENGARAJAN JUNIOR STANDING COUNSEL DATE OF HEARING : 28.02.2012 DATE OF PRONOUNCEMENT : 28.02.2012 I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 2 O R D E R PER ABRAHAM P. GEORGE ACCOUNTANT MEMBER : THESE ARE APPEALS FILED BY DIFFERENT ASSESSEES WH ICH ARE DIRECTED AGAINST A CONSOLIDATED ORDER DATED 1.12.20 11 OF COMMISSIONER OF INCOME TAX (APPEALS)-IV CHENNAI F OR THE IMPUGNED ASSESSMENT YEAR. 2. SHORT FACTS APROPOS ARE THAT ASSESSEES NON-RESI DENTS HAD FILED THEIR RETURN ON 29.8.2008 DECLARING AN INCOME OF ` 2 05 93 100/- AND ` 1 05 00 000/- RESPECTIVELY. THE SOURCE OF INCOME D ECLARED BY THE ASSESSEES WERE CAPITAL GAINS ON SALE OF SHARES OF A COMPANY CALLED M/S BREEZE HOTELS LTD. ASSESSEES HAD COMPUTED TAX ON SUCH CAPITAL GAINS BASED ON THE CONCESSIONAL RATE GIVEN IN SECTI ON 115E OF INCOME-TAX ACT 1962 (IN SHORT 'THE ACT'). DURING THE COURSE OF ASSESSMENT PROCEEDINGS A.O. NOTED THAT CAPITAL GAI NS AROSE OUT OF SALE OF 14 06 090 SHARES IN THE CASE OF ASSESSEE SM T. DEIVANAYAGAM MARUTHINI AND 7 00 000 SHARES IN THE C ASE OF THE ASSESSEE SHRI EASSUWARAN DEIVANAYAGAM OF M/S BREEZE HOTEL LTD. AND THE INVESTMENTS ORIGINALLY MADE BY THE ASSESSEE S IN THE SAID COMPANY WERE AS PER THE OCB SCHEME OF GOVERNMENT OF INDIA ON NON-REPATRIATION BASIS. AS PER THE A.O. THE SHARE S SOLD BY THE I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 3 ASSESSEES WERE BONUS SHARES RECEIVED BY THEM FROM T HE SAID COMPANY. HENCE ACCORDING TO A.O. THE LOWER RATE OF TAX MENTIONED IN SECTION 115E COULD NOT BE APPLIED. AS PER THE A .O. THE SAID SECTION APPLIED ONLY TO FOREIGN EXCHANGE ASSET AS D EFINED IN SECTION 115C OF THE ACT AND BONUS SHARES COULD NOT BE CONSI DERED AS A FOREIGN EXCHANGE ASSET. THOUGH THE ASSESSEE SUBMIT TED THAT THE DEFINITION WOULD BE EQUALLY APPLICABLE TO BONUS SHA RES SINCE THE ORIGINAL SHARES WERE ACQUIRED BY THE ASSESSEES IN C ONVERTIBLE FOREIGN CURRENCY THIS WAS NOT ACCEPTABLE TO THE A.O. HE THEREFORE APPLIED 20% RATE ON THE CAPITAL GAINS IN WORKING OUT CAPITA L GAINS TAX IN ACCORDANCE WITH SECTION 112 OF THE ACT. 3. IN THEIR APPEALS BEFORE LD. CIT(APPEALS) ARGUME NT OF THE ASSESSEES WAS THAT THE BONUS SHARES HAVE TO BE TREA TED ON PAR WITH THE ORIGINAL SHARES AND ORIGINAL SHARES HAVING BEEN ACQUIRED USING CONVERTIBLE FOREIGN CURRENCY THE CONCESSIONAL RATE GIVEN UNDER SECTION 115E OF THE ACT COULD BE APPLIED FOR WORKIN G OUT CAPITAL GAINS. RELIANCE WAS PLACED ON THE DECISION OF MUMB AI BENCH OF THIS TRIBUNAL IN THE CASE OF SANJAY GALA V. ITO (2011) 4 6 SOT 482. HOWEVER LD. CIT(APPEALS) WAS NOT IMPRESSED. ACCOR DING TO HIM SANJAY GALAS CASE OF MUMBAI BENCH RELIED ON BY THE ASSESSEE WAS I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 4 IN THE CONTEXT OF SECTION 115F OF THE ACT WHEREAS CASE OF PRESENT ASSESSEES WERE CONCERNED WITH SECTION 115E OF THE A CT. AS PER LD. CIT(APPEALS) EVENTHOUGH FOR WORKING OUT THE COST O F BONUS SHARES COST OF ACQUISITION HAD TO BE SPREAD OVER THE ORIGI NAL SHARES HERE THE ASSESSEES HAD SOLD ONLY BONUS SHARES. LD. CIT( APPEALS) ALSO NOTED THAT INTENTION OF THE LEGISLATURE FOR GIVING A CONCESSIONAL RATE OF TAX WAS ONLY TO ENCOURAGE INVESTMENTS IN CONVERTIBL E FOREIGN EXCHANGE AND THIS PURPOSE WOULD NOT BE SATISFIED IF THE SHARES SOLD WERE BONUS SHARES. 4. NOW BEFORE US STRONGLY ASSAILING THE ORDERS OF LOWER AUTHORITIES LEARNED A.R. SUBMITTED THAT CHAPTER XI I-A OF THE ACT CONTAINED SPECIAL PROVISIONS RELATING TO CERTAIN IN COMES OF NON- RESIDENTS. ACCORDING TO HIM SUB-SECTION (B) OF SE CTION 115C DEFINED FOREIGN EXCHANGE ASSET TO BE ANY SPECIFIED ASSET WHICH WAS ACQUIRED BY THE ASSESSEE USING CONVERTIBLE FOREIGN EXCHANGE AND THE SAID SPECIFIED ASSET AS PER SUB-SECTION (F) OF THE SAME SECTION INCLUDED SHARES WITH AN INDIAN COMPANY. LEARNED A. R. SUBMITTED THAT THERE WAS NO DISPUTE THAT ASSESSEES HAD ACQUIR ED THE ORIGINAL SHARES ON WHICH BONUS SHARES WERE RECEIVED BY THEM USING CONVERTIBLE FOREIGN EXCHANGE. HENCE ACCORDING TO HIM BONUS I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 5 SHARES ISSUED ON SUCH SHARES ALSO HAD TO BE NECESSA RILY CONSIDERED AS PER SPECIFIED ASSET ONLY. STRONG RELIANCE WAS A GAIN PLACED ON THE DECISION OF MUMBAI BENCH IN THE CASE OF SANJAY GALA (SUPRA). ACCORDING TO HIM THE SAID DECISION THOUGH IN RELAT ION TO SECTION 115F BOTH SECTIONS 115E AND 115F FELL UNDER CHAPTE R XII-A AND ONLY DIFFERENCE WAS THAT SECTION 115E DEALT WITH RATE OF TAX WHEREAS SECTION 115F DEALT WITH EXEMPTION ON CAPITAL GAINS ON TRANSFER OF FOREIGN EXCHANGE ASSET WHEN INVESTMENTS AS SPECIFIE D THEREIN WERE MADE. 5. PER CONTRA LEARNED D.R. STRONGLY SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL SUBMISSIONS. THE QUESTION BEFORE US IS WHETHER CONCESSIONAL RATE MENTIONED IN SECTION 115E COULD BE APPLIED TO LONG TERM CAPITAL GAINS DERIVED BY THE ASSESSEE ON SALE OF BONUS SHARES WHERE SUCH BO NUS SHARES RESULTED OUT OF ORIGINAL INVESTMENTS OF SHARES MADE OUT OF CONVERTIBLE FOREIGN EXCHANGE. SECTION 115E IS REPRODUCED HEREU NDER:- TAX ON INVESTMENT INCOME AND LONG-TERM CAPITAL GAIN S. 115E. WHERE THE TOTAL INCOME OF AN ASSESSEE BEING A NON- RESIDENT INDIAN INCLUDES I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 6 ( A ) ANY INCOME FROM INVESTMENT OR INCOME FROM LONG-TE RM CAPITAL GAINS OF AN ASSET OTHER THAN A SPECIFIED ASSET; ( B ) INCOME BY WAY OF LONG-TERM CAPITAL GAINS THE TAX PAYABLE BY HIM SHALL BE THE AGGREGATE OF ( I ) THE AMOUNT OF INCOME-TAX CALCULATED ON THE INCOME IN RESPECT OF INVESTMENT INCOME REFERRED TO IN CLAUSE ( A ) IF ANY INCLUDED IN THE TOTAL INCOME AT THE RATE OF TWENTY PER CENT; ( II ) THE AMOUNT OF INCOME-TAX CALCULATED ON THE INCOME BY WAY OF LONG- TERM CAPITAL GAINS REFERRED TO IN CLAUSE ( B ) IF ANY INCLUDED IN THE TOTAL INCOME AT THE RATE OF TEN PER CENT; AND ( III ) THE AMOUNT OF INCOME-TAX WITH WHICH HE WOULD HAVE BEEN CHARGEABLE HAD HIS TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME REFERRED TO IN CLAUSES ( A ) AND ( B ).] 7. SUB-CLAUSE (B) READ ALONG WITH (II) CLEARLY INDI CATE THAT INCOME BY WAY OF LONG TERM CAPITAL GAINS HAS TO BE TAXED A T 10%. SUB-CLAUSE (A) DEALS WITH INCOME FROM INVESTMENT OF AN ASSET O THER THAN A SPECIFIED ASSET. BY IMPLICATION INCOME BY WAY OF LONG TERM CAPITAL GAINS MENTIONED IN SUB-CLAUSE (B) RELATE ONLY TO LO NG TERM CAPITAL GAINS ARISING OUT OF SALE OF SPECIFIED ASSET. WHIL E SECTION 115E DEALS WITH THE RATE OF TAX SECTION 115F DEALS WITH TREAT MENT OF CAPITAL GAINS ON TRANSFER OF FOREIGN EXCHANGE ASSETS WHERE THE CO NSIDERATION RECEIVED ON SUCH SALE WERE INVESTED IN CERTAIN TYPE S OF ASSETS AS MENTIONED THEREIN. SECTION 115F IS REPRODUCED HERE UNDER:- CAPITAL GAINS ON TRANSFER OF FOREIGN EXCHANGE ASSET S NOT TO BE CHARGED IN CERTAIN CASES. 115F. (1) WHERE IN THE CASE OF AN ASSESSEE BEING A NON-R ESIDENT INDIAN ANY LONG-TERM CAPITAL GAINS ARISE FROM THE TRANSFER OF A FOREIGN EXCHANGE ASSET (THE ASSET SO TRANSFERRED BEING HEREAFTER IN THIS SECTION REFERRED I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 7 TO AS THE ORIGINAL ASSET) AND THE ASSESSEE HAS WI THIN A PERIOD OF SIX MONTHS AFTER THE DATE OF SUCH TRANSFER INVESTED 4 [***] THE WHOLE OR ANY PART OF THE NET CONSIDERATION IN ANY SPECIFIED ASSE T 5 [***] OR IN ANY SAVINGS CERTIFICATES REFERRED TO IN CLAUSE ( 4B ) OF SECTION 10 (SUCH SPECIFIED ASSET 6 [***] OR SUCH SAVINGS CERTIFICATES BEING HEREAFTER IN THIS SECTION REFERRED TO AS THE NEW ASSET) THE CAPITAL GAIN SHALL BE DEALT WITH IN ACCORDANCE WITH THE FOLLOWING PROVISIONS OF THIS SECTION THAT IS TO SAY ( A ) IF THE COST OF THE NEW ASSET IS NOT LESS THAN THE NET CONSIDERATION IN RESPECT OF THE ORIGINAL ASSET THE WHOLE OF SUCH CA PITAL GAIN SHALL NOT BE CHARGED UNDER SECTION 45 ; ( B ) IF THE COST OF THE NEW ASSET IS LESS THAN THE NET CONSIDERATION IN RESPECT OF THE ORIGINAL ASSET SO MUCH OF THE CAPIT AL GAIN AS BEARS TO THE WHOLE OF THE CAPITAL GAIN THE SAME PROPORTION A S THE COST OF ACQUISITION OF THE NEW ASSET BEARS TO THE NET CONSI DERATION SHALL NOT BE CHARGED UNDER SECTION 45 . EXPLANATION. FOR THE PURPOSES OF THIS SUB-SECTION ( I ) COST IN RELATION TO ANY NEW ASSET BEING A DEP OSIT 7 [***] REFERRED TO IN SUB-CLAUSE ( III ) OR SPECIFIED UNDER SUB-CLAUSE ( V ) OF CLAUSE ( F ) OF SECTION 115C MEANS THE AMOUNT OF SUCH DEPOSIT; ( II ) NET CONSIDERATION IN RELATION TO THE TRANSFER OF THE ORIGINAL ASSET MEANS THE FULL VALUE OF THE CONSIDERATION RECEIVED OR ACCRUING AS A RESULT OF THE TRANSFER OF SUCH ASSET AS REDUCED BY ANY EXPENDITURE INCURRED WHOLLY AND EXCLUSIVELY IN CONNECTION WITH SUCH TRANSFER. (2) WHERE THE NEW ASSET IS TRANSFERRED OR CONVERTE D (OTHERWISE THAN BY TRANSFER) INTO MONEY WITHIN A PERIOD OF THREE YEAR S FROM THE DATE OF ITS ACQUISITION THE AMOUNT OF CAPITAL GAIN ARISING FRO M THE TRANSFER OF THE ORIGINAL ASSET NOT CHARGED UNDER SECTION 45 ON THE BASIS OF THE COST OF SUCH NEW ASSET AS PROVIDED IN CLAUSE ( A ) OR AS THE CASE MAY BE CLAUSE ( B ) OF SUB-SECTION (1) SHALL BE DEEMED TO BE INCOME CHA RGEABLE UNDER THE HEAD CAPITAL GAINS RELATING TO CAPITAL ASSETS OTHER TH AN SHORT-TERM CAPITAL ASSETS OF THE PREVIOUS YEAR IN WHICH THE NEW ASSET IS TRANSFERRED OR CONVERTED (OTHERWISE THAN BY TRANSFER) INTO MONEY. A CONJOINT READING OF SECTION 115E AND 115F CLEARLY SHOW THAT LONG TERM CAPITAL GAINS MENTIONED IN CLAUSE (B) OF SECTI ON 115E AND INVESTMENT MADE OUT OF SALE CONSIDERATION RECEIVED ON TRANSFER OF I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 8 FOREIGN EXCHANGE ASSET MENTIONED IN SECTION 115F B OTH RELATE TO INCOME ARISING OUT OF TRANSFER OF FOREIGN EXCHANGE ASSET. THE QUESTION WHETHER BONUS SHARES CAN BE CONSIDERED AS FOREIGN EXCHANGE ASSET WHERE ORIGINAL SHARES WERE ACQUIRED USING CONVERTIBLE FOREIGN EXCHANGE IN RELATION TO A CLAI M OF AN ASSESSEE FOR EXEMPTION UNDER SECTION 115F HAD COME UP BEFORE MU MBAI BENCH OF THIS TRIBUNAL IN THE CASE OF SANJAY GALA (SUPRA) WHEREIN IT WAS HELD AT PARAS 9 AND 10 AS UNDER:- 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS PERUSE D THE RELEVANT MATERIAL ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AS WELL AS DECISIONS CITED. THE ISSUE INVOLV ED IN THIS APPEAL FOR OUR CONSIDERATION IS WHETHER THE ASSESSEE IS ELIGIB LE FOR BENEFIT U/S 115F OF THE ACT ON THE BONUS SHARES RECEIVED BY HI M. THE ASSESSEE IS NRI ACQUIRED SHARES WITH CONVERTIBLE FOREIGN EXC HANGE. SUBSEQUENTLY BONUS SHARES WERE ALLOTTED TO HIM. A CCORDING TO THE A.O. AND CIT(A) THE ASSESSEE IS ONLY ELIGIBLE FOR BENEFIT U/S 115F OF THE ACT WITH REGARD TO SUBSCRIPTION MADE TO ORIGINA L SHARES AND HE IS NOT ELIGIBLE FOR THE NOUS SHARES SUBSEQUENTLY RECEI VED BY HIM AS NO SUBSCRIPTION MADE IN FOREIGN EXCHANGE TO RECEIVE TH E BONUS SHARES. IN THIS CONNECTION WE REFER TO THE PROVISIONS OF SECT ION 115C(B) OF THE ACT WHICH READ AS UNDER:- (B) FOREIGN EXCHANGE ASSET MEANS ANY SPECIFIED AS SET WHICH THE ASSESSEE HAS ACQUIRED OR PURCHASED WITH OR SUB SCRIBED TO IN CONVERTIBLE FOREIGN EXCHANGE: 10. ON PERUSAL OF THE ABOVE PROVISION IT IS CLEAR THAT FOREIGN EXCHANGE ASSET FOR THE PURPOSE OF SECTION 115F IS T HE ONE WHICH ASSESSEE HAS ACQUIRED IN CONVERTIBLE FOREIGN EXCHAN GE. IN THE PRESENT CASE THE ASSESSEE SUBSCRIBED TO SHARES IN CONVERTI BLE FOREIGN EXCHANGE AND ACQUIRED THE FOREIGN EXCHANGE ASSET. IN SO FAR AS THIS I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 9 ASPECT IS CONCERNED THERE IS NO DISPUTE FROM THE R EVENUE AUTHORITIES. THE ONLY DISPUTE IS WITH REGARD TO THE BONUS SHARES RECEIVED BY THE ASSESSEE. THE OBJECTION OF THE REVENUE AUTHORITIES IS THAT THE ASSESSEE HAS RECEIVED THE BONUS SHARES WITHOUT INVE STING ANY CONVERTIBLE FOREIGN EXCHANGE. WE ARE OF THE VIEW T HAT THE ASSESSEE ACQUIRED THE ORIGINAL SHARES BY INVESTING IN CONVER TIBLE FOREIGN EXCHANGE AND THEREFORE IT CANNOT BE SAID THAT THE BONUS SHARES ARE ACQUIRED IN ISOLATION WITHOUT TAKING INTO CONSIDERA TION THE ORIGINAL SHARES ACQUIRED BY THE ASSESSEE. THE HONBLE SUPRE ME COURT AND VARIOUS HIGH COURTS HAVE CONSIDERED THE ISSUE WITH REGARD TO VALUE OF THE BONUS SHARES AND HELD THAT THE METHOD OF SPREA DING OVER ON BOTH THE BONUS AND THE ORIGINAL SHARES THE COST OF ACQUI SITION OF THE ORIGINAL SHARES WOULD APPEAR TO BE THE PROPER METHO D OF DETERMINING THE VALUE OF THE ASSET. FOR THERE IS NO DOUBT THA T ON THE ISSUANCE OF THE BONUS SHARES THE VALUE OF THE ORIGINAL SHARES IS PROPORTIONATELY DIMINISHED. IN SIMPLE LANGUAGE IT IS SPLIT UP. AS SUCH THE COST OF ACQUISITION OF THE ORIGINAL SHARES AND THEIR VALUE IS CLOSELY INTERLINKED AND INTERDEPENDENT ON THE ISSUE OF BONUS SHARES. T HEREFORE ONCE THE BONUS SHARES ARE ISSUED THE AVERAGING OUT FORMULA HAS TO BE FOLLOWED WITH REGARD TO ALL THE SHARES. IN VIEW OF THE ABO VE PROPOSITION THE BONUS SHARES ACQUIRED BY THE ASSESSEE ARE COVERED B Y SECTION 115C(B) OF THE ACT AND THE SAME ARE ELIGIBLE FOR BENEFIT U /S 115F OF THE ACT. ACCORDINGLY THE GROUND RAISED BY THE ASSESSEE IS A LLOWED. IN OUR OPINION THERE CAN BE NO DIFFERENTIATION WHA TSOEVER BETWEEN DEFINITION OF FOREIGN EXCHANGE ASSET AS APPLIED T O SECTION 115E AND 115F SINCE BOTH THE SECTIONS FALL UNDER CHAPTER XII -A OF THE ACT. THAT BEING SO ASSESSEES CANNOT BE DEPRIVED OF THE CONCE SSIONAL RATE AVAILABLE UNDER SECTION 115E OF THE ACT JUST BECAUS E THE SALE OF SHARES WERE BONUS SHARES. CO-ORDINATE BENCH OF THI S TRIBUNAL RIGHTLY RELIED ON THE DECISION OF HONBLE APEX COURT IN THE CASE OF CIT V. DALMIA INVESTMENT CO. LTD. (52 ITR 567) FOR HOLDING THAT SUCH BONUS I.T.A. NO. 170/MDS/12 I.T.A. NO. 171/MDS/12 10 SHARES WERE COVERED BY SUB-CLAUSE (B) OF SECTION 11 5C OF THE ACT AND WAS A FOREIGN EXCHANGE ASSET. THIS BEING SO I NCOME BY WAY OF LONG TERM CAPITAL GAINS ON TRANSFER THEREOF WAS WEL L ELIGIBLE FOR APPLICATION OF CONCESSIONAL RATE OF TAX SPECIFIED U NDER SUB-CLAUSE (B) OF SECTION 115E OF THE ACT. WE ARE OF THE OPINION THAT AUTHORITIES BELOW FELL IN ERROR WHEN THEY APPLIED HIGHER RATE O F TAX ON THE ASSESSEES THAN WHAT WAS WARRANTED UNDER LAW. THE O RDERS OF AUTHORITIES BELOW ARE SET ASIDE. A.O. IS DIRECTED TO GIVE THE ASSESSEES BENEFIT OF CONCESSIONAL RATE UNDER CLAUSE (B) OF SECTION 115E OF THE ACT. 8. IN THE RESULT APPEALS OF BOTH THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 28 TH FEBRUARY 2012. SD/- SD/- (VIKAS AWASTHY) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI DATED THE 28 TH FEBRUARY 2012. KRI. COPY TO: APPELLANTS/RESPONDENT/CIT(A)-IV CHENNAI- 34/ CIT INTERNATIONAL TAXATION CHENNAI/D.R./GUARD FIL E