DDIT (I.T) - 2(1), MUMBAI v. M/s. SAP AKTIENGESELISHAFT SYSTEMS, APPLICATIONS, MUMBAI

ITA 748/MUM/2007 | 2003-2004
Pronouncement Date: 09-11-2011 | Result: Allowed

Appeal Details

RSA Number 74819914 RSA 2007
Assessee PAN AAFCS3654I
Bench Mumbai
Appeal Number ITA 748/MUM/2007
Duration Of Justice 4 year(s) 9 month(s) 17 day(s)
Appellant DDIT (I.T) - 2(1), MUMBAI
Respondent M/s. SAP AKTIENGESELISHAFT SYSTEMS, APPLICATIONS, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 09-11-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted L
Tribunal Order Date 09-11-2011
Date Of Final Hearing 06-07-2011
Next Hearing Date 06-07-2011
Assessment Year 2003-2004
Appeal Filed On 22-01-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIB UNAL MUMBAI BENCHES L MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI N.V.VASUDEVAN JM ITA NO.2137/MUM/2006 : ASST.YEAR 2002-2003 ITA NO.748/MUM/2007 : ASST. YEAR 2003-2004 ITA NO.7419/MUM/2007 : ASST. YEAR 2004-2005 ITA NO.5885/MUM/2009 : ASST. YEAR 2005-2006 THE ASSTT.DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) 2(1) MUMBAI. M/S.SAP AKTIENGESELLSHAFT SYSTEMS APPLICATIONS & PRODUCTS IN DATA PROCESSING C/O.M/S.S.R.BATLIBOI & ASSOCIATES 18 TH FLOOR EXPRESS TOWERS NARIMAN POINT MUMBAI 400 021. PAN :AAFCS3654I. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SHRI MALATHI SRIDHARAN RESPONDENT BY : SHRI M.P.LOHIA DATE OF HEARING : 01.11.2011 DATE OF PRONOUNCEMENT : 09.11.2011 O R D E R PER BENCH : THESE FOUR APPEALS BY THE REVENUE ARISE OUT OF THE ORDERS PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) IN RELATION TO THE ASSESSMENT YEARS 2002- 2003 2003-2004 2004-2005 & 2005-2006. SINCE ALL THESE APPEALS ARE BASED ON SIMILAR FACTS INVOLVING COMMON ISSUE WE ARE THERE FORE PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY ISSUE RAISED IN THESE APPEALS IS AGAINS T THE DIRECTION OF THE LEARNED CIT(A) TO THE EFFECT THAT SAP INDIA DID NOT CONSTIT UTE PERMANENT ESTABLISHMENT OF THE ASSESSEE. 3. AT THE VERY OUTSET THE LEARNED COUNSEL FOR THE A SSESSEE CONTENDED THAT SIMILAR ISSUE WAS RAISED BY THE REVENUE IN ITS APPE AL FOR THE IMMEDIATELY PRECEDING YEAR I.E. ASSESSMENT YEAR 2001-2002. WHILE PLACING ON RECORD A COPY OF THE ORDER ITA NOS.2137/MUM/2006 & ORS. M/S.SAP AKTIENGESELLSHAFT SYSTEMS. 2 PASSED BY THE TRIBUNAL IN ITA NO.306/MUM/2005 DATED 27 TH AUGUST 2008 THE LEARNED A.R. STATED THAT THE MATTER HAS BEEN RESTOR ED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION AND EXAMINING THE RE LEVANT FACTS AND MATERIAL FOR DECIDING WHETHER SAP INDIA CONSTITUTES PERMANENT ES TABLISHMENT OF THE ASSESSEE IN INDIA OR NOT. THE LEARNED DEPARTMENTAL REPRESENTATI VE DID NOT CONTROVERT THE POSITION SO STATED ON BEHALF OF THE ASSESSEE. 4. HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THESE APPEALS VIS--VIS THE VIEW TAKEN BY THE TRIBUNAL IN THE IMMEDIATELY PRECE DING YEAR WE SET ASIDE THE IMPUGNED ORDERS AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR TAKING A FRESH DECISION IN ACCORDANCE WITH THE DIRE CTIONS CONTAINED IN THE TRIBUNAL ORDER FOR ASSESSMENT YEAR 2001-2002 REFERRED TO ABO VE. NEEDLESS TO SAY THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNITY O F BEING HEARD. 5. IN THE RESULT ALL THE APPEALS ARE ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 09 TH DAY OF NOVEMBER 2011. SD/- SD/- (N.V.VASUDEVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 09 TH NOVEMBER 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - V MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.