M/s. CLIFFORD CHANCE, MUMBAI v. ADIT (I.T) 1(2), MUMBAI

ITA 3573/MUM/2005 | 1997-1998
Pronouncement Date: 05-04-2010 | Result: Dismissed

Appeal Details

RSA Number 357319914 RSA 2005
Assessee PAN AABFC3095N
Bench Mumbai
Appeal Number ITA 3573/MUM/2005
Duration Of Justice 4 year(s) 10 month(s) 23 day(s)
Appellant M/s. CLIFFORD CHANCE, MUMBAI
Respondent ADIT (I.T) 1(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 05-04-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted L
Tribunal Order Date 05-04-2010
Date Of Final Hearing 30-10-2009
Next Hearing Date 30-10-2009
Assessment Year 1997-1998
Appeal Filed On 12-05-2005
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL 'L' BENCH MUMBAI BEFORE SHRI D.K. AGARWAL JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER ITA NO. 3803/MUM/2003 : A.Y. 1996-97 ITA NO. 7554/MUM/2003 : A.Y. 1996-97 ITA NO. 3572/MUM/2005 : A.Y. 1996-97 ITA NO. 1330/MUM/2006 : A.Y. 1996-97 ITA NO. 3804/MUM/2003 : A.Y. 1997-98 ITA NO. 7555/MUM/2003 : A.Y. 1997-98 ITA NO. 3573/MUM/2005: A.Y. 1997-98 M/S.CLIFFORD CHANCE DIT/ADIT/ITO (INTERNATIONAL TAX ATION) C/O BHARAT S. RAUT & CO. AAYAKAR BHAVAN M.K. ROAD KPMG HOUSE LOWER PAREL VS. MUMBAI 400020 MUMBAI 400013 PAN - AABFC 3095 N APPELLANT RESPONDENT APPELLANT BY: SHRI M.S. SYALI & SHRI TARANDEEP SINGH RESPONDENT BY: SHRI NARENDER SINGH O R D E R PER BENCH THIS GROUP OF APPEALS BY THE ASSESSEE ARE FOR THE A SSESSMENT YEARS 1996-97 AND 1997-98. APPEALS IN ITA NOS. 3803 & 380 4/MUM/2003 ARE AGAINST THE ORDER OF THE DIRECTOR OF INCOME TAX (IN TERNATIONAL TAXATION) UNDER SECTION 263. ITA NOS. 3572 & 3573/MUM/2005 AR E CONSEQUENTIAL ORDERS OF THE A.O. PASSED AFTER THE PROCEEDINGS UND ER SECTION 263. ITA NOS. 7554 & 7555/MUM/2003 ARE ORDERS AGAINST PENALTY UND ER SECTION 271(1)(C) CONFIRMED BY THE CIT(A) AND ITA NO. 1330/MUM/2006 I S AGAINST THE ORDER UNDER SECTION 221 LEVYING PENALTY FOR DEFAULT IN PA YMENT OF TAX CONSEQUENT TO THE ABOVE ORDERS. 2. CONSEQUENT TO THE ORDERS OF THE ITAT IN M/S CLIFFOR D CHANCE U.K. VS. DCIT FOR A.Y. 1996-97 DATED 27.09.2001 REPORTED IN 82 ITD 106 (MUM) THE ITA NO. 3803+6/MUM/2003 M/S.CLIFFORD CHANCE 2 CIT(A) HAS INITIATED THE PROCEEDINGS UNDER SECTION 263 FOR EXAMINING THE EXPENDITURE CLAIMED BY THE ASSESSEE AND THESE PROCE EDINGS ARE CONCLUDED BY THE ORDERS OF 10.07.2003. SUBSEQUENTLY FOR THE IMPUGNED ASSESSMENT YEARS THE A.O. HAS PASSED THE ORDERS ON 24.02.2004 WHICH WAS CONFIRMED BY THE CIT(A). SUBSEQUENT TO THE ABOVE DATES VIDE O RDER DATED 19.12.2008 THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CLIFFO RD CHANCE VS. DCIT 318 ITR 237 HAS REVERSED THE FINDING OF THE ITAT AND UP HELD ASSESSEES CONTENTIONS THAT THE ASSESSEE WAS ELIGIBLE TO BE TA XED TO THE EXTENT OF INCOME ATTRIBUTABLE TO SERVICES PERFORMED BY IT IN INDIA I N RESPECT OF THE 4 PROJECTS AND TO THAT PART OF INCOME WHICH WAS ATTRIBUTABLE TO THE SERVICES RENDERED BY IT IN INDIA AND UTILISED IN INDIA. CONSEQUENT TO THE ORDER OF THE JURISDICTIONAL HIGH COURT THE A.O. VIDE ORDER DATE D 31.12.2008 HAS ACCEPTED ASSESSEES INCOME RETURNED AND WITHDREW TH E VARIOUS TAXES LEVIED INCLUDING THE PENALTY LEVIED IN VARIOUS PROCEEDINGS . 3. AT THE OUTSET THE LEARNED COUNSEL SUBMITTED THAT T HE ASSESSEES GRIEVANCES WERE OTHERWISE SETTLED BY THE ASSESSING OFFICERS ORDERS PASSED FOR THE IMPUGNED YEARS CONSEQUENT TO THE ORDER OF T HE HON'BLE BOMBAY HIGH COURT AND ACCORDINGLY THERE IS NO GRIEVANCE WHICH I S TO BE REDRESSED IN THESE APPEALS. ALL THE ORDERS ARE PLACED IN THE PAP ER BOOK FILED IN THIS REGARD. 4. THE LEARNED D.R. ACCEPTED THE FACTUAL POSITION THAT THE A.O. HAS MODIFIED THE ORDERS AND ACCEPTED THE RETURN OF INCO ME FILED BY THE ASSESSEE IN RESPECTIVE YEARS. 5. IN VIEW OF THE FACTS STATED ABOVE THERE IS NO GRIEV ANCE WHICH IS TO BE REDRESSED IN THESE PROCEEDINGS AS THE PROCEEDINGS U NDER SECTION 263 WERE CONSEQUENTIAL TO THE ORDERS PASSED BY THE ITAT EARL IER UPHOLDING REVENUES CONTENTIONS. SINCE THE FINDINGS WERE REVERSED BY TH E HON'BLE BOMBAY HIGH COURT THE A.O. HIMSELF WITHDREW THE VARIOUS DEMAND S AND ACCEPTED THE INCOMES RETURNED. IN VIEW OF THIS THERE IS NO NEED TO CONSIDER ASSESSEES CONTENTIONS RAISED IN VARIOUS APPEALS AS IT BECAME INFRUCTUOUS AT THIS POINT OF TIME. THERE IS NO NEED TO ADJUDICATE THE ISSUES. ITA NO. 3803+6/MUM/2003 M/S.CLIFFORD CHANCE 3 6. IN VIEW OF THIS ALL THE APPEALS ARE TREATED AS DIS MISSED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH APRIL 2010. SD/- SD/- (D.K. AGARWAL) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI DATED: 5 TH APRIL 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXXI MUMBAI 4. THE DIT (INTERNATIONAL TAXATION) MUMBAI 5. THE DR L BENCH ITAT MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI N.P.