DDIT (IT) 4(2), MUMBAI v. OT AFRICA LINE LTD, MUMBAI

ITA 5670/MUM/2013 | 2006-2007
Pronouncement Date: 28-11-2019 | Result: Dismissed

Appeal Details

RSA Number 567019914 RSA 2013
Assessee PAN AAACO4453G
Bench Mumbai
Appeal Number ITA 5670/MUM/2013
Duration Of Justice 6 year(s) 2 month(s) 21 day(s)
Appellant DDIT (IT) 4(2), MUMBAI
Respondent OT AFRICA LINE LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted L
Tribunal Order Date 28-11-2019
Date Of Final Hearing 03-08-2017
Next Hearing Date 03-08-2017
First Hearing Date 03-08-2017
Assessment Year 2006-2007
Appeal Filed On 06-09-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I MUMBAI BEFORE SHRI C.N. PRASAD HONBLE JUDICIAL MEMBER AND SHRI G. MANJUNATHA HONBLE ACCOUNTANT MEMBER ITA NO . 5670 /MUM/201 3 ( A.Y: 20 06 - 07) DY. DIRECTOR OF INCOME - TAX (IT) 4(2) ROOM NO. 1 1 GROUND FLOOR SCINDIA HOUSE BALLAR D PIER MUMBAI 400 038 V. M/S. DELMAS (UK) LIMITED {PREVIOUSLY KNOWN AS OT AFRICA LINE LIMITED} C/O. CMA CGM AGENCIES (INDIA) PVT. LTD. HAMILTON HOUSE 8 J.N. HEREDIA MARG BALLARD ESTATE MUMBAI 400 038 PAN: AAACO4453G (APPELLANT) (RESPONDENT) C.O. NO. 12/MUM/2015 [ARISING OUT OF ITA NO. 5670/MUM/2013 (A.Y: 2006 - 07)] M/S. DELMAS (UK) LIMITED {PREVIOUSLY KNOWN AS OT AFRICA LINE LIMITED} C/O. CMA CGM AGENCIES (INDIA) PVT. LTD. INDIA BULLS FINANCE CENTER TOWER 3 8 TH FLOOR SENAPATI BAPAT MARG ELPHINSTONE(W) MUMBAI 400 013 PAN: AAACO4453G V. DY. DIRECTOR OF INCOME - TAX (IT) 4(2) ROOM NO. 11 GROUND FLOOR SCINDIA HOUSE BALLARD ESTATE N.M. ROAD MUMBAI 400 038 (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.P. LOHIA & SHRI NIKHIL TIWARI DEPARTMENT BY : SHRI HARSHAD VENGURLEKAR DATE OF HEARING : 28 .11.2019 DATE OF PRONOUNCEMENT : 2 8 .11.2019 2 ITA NO. 5670/MUM/2013 (A.Y: 2006 - 07) C.O. NO. 12/MUM/2015 M/S. DELMAS (UK) LIMITED {PREVIOUSLY KNOWN AS OT AFRICA LINE LIMITED} O R D E R PER C.N. PRASAD (JM) THIS APPEAL AND CROSS OBJECTION ARE FILED BY THE R EVENUE AND ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 11 MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] DATED 03.06.2013 FOR THE ASSESSMENT YEAR 2006 - 07 . 2. THE REVENUE IN ITS APPEAL HAS RAISED THE FOLLOWING GROUNDS : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN HOLDING THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF SHIPPING AND THEREFORE INCOME IS NOT ASSESSABLE IN INDIA APPLYING ARTICLE 9 OF INDIA - UK TREATY WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE IS NON VESSEL OWNING CONTAINER OPERATING COMPANY A ND DOES NOT OWN ANY SHIP AND PARA 4 OF THE ARTICLE 9 ONLY EXTENDS THE SCOPE OF BENEFIT AVAILABLE UNDER PARA 1 AND 2 OF DTAA. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN DECOUPLING THE ARTICLE 7 AND 9 OF DTAA AND THEREBY WRONGLY HELD THAT THE INCOME OF THE ASSESSEE IS COVERED BY ARTICLE 9 OF THE TREATY. IT WAS FURTHER WRONGLY HELD THAT ARTICLE 7 OF THE TREATY HAS NO APPLICATION WITHOUT APPRECIATING THE FACT THAT THE ARTICLE 7 CLEARLY MENTIONS THAT THE INCOME GENER ATED THROUGH PE WILL BE TAXED IN OTHER STATES. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CIT(A) ON THE ABOVE GROUND(S) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NE W GROUND WHICH MAY BE NECESSARY. 3. AT THE TIME OF HEARING LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE S IN THE PRESENT APPEAL IS BELOW .5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.2 79/MISC.142/2007 - ITJ (PT) THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 3 ITA NO. 5670/MUM/2013 (A.Y: 2006 - 07) C.O. NO. 12/MUM/2015 M/S. DELMAS (UK) LIMITED {PREVIOUSLY KNOWN AS OT AFRICA LINE LIMITED} 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE . 5. WE HAVE HEARD THE SUBMISSIONS PERUSED THE GROUNDS OF APPEAL AND THE ORDERS OF THE LOWER AUTHORITIES IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .5 0 LAKHS AND T HEREFORE THE APPEAL OF THE R EVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE TH IS APPEAL IS DISMISSED. 6. COMING TO CROSS OBJECTION FILED BY THE ASSESSEE IT IS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE THAT AS THE REVENUES APPEAL IS DISMISSED THE CROSS OBJECTION FILED BY THE ASSESSEE MAY BE TREATED AS INF RUCTUOUS. IN VIEW OF THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THE CROSS OBJECTION FILED BY THE ASSESSEE IS TREATED AS INFRUCT UOUS AND DISMISSED ACCORDINGLY. 7. IN THE RESULT APPEAL OF THE R EVENUE AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 28 TH NOVEMBER 2019 . SD/ - SD/ - (G. MANJUNATHA ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 28 / 11/2019 GIRIDHAR SR.PS 4 ITA NO. 5670/MUM/2013 (A.Y: 2006 - 07) C.O. NO. 12/MUM/2015 M/S. DELMAS (UK) LIMITED {PREVIOUSLY KNOWN AS OT AFRICA LINE LIMITED} COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT MUM