WWW.TAXSCAN.IN - Simplifying Tax Laws

आयकर अपीलीय अिधकरण मुब ं ई “ई” खंडपीठ IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI

सवी राजे , लेखा सदय एवं संदीप गोसांई , याियक सदय Before S/Shri Rajendra, A.M. and Sandeep Gosain,J.M. आयकर अपील सं./ITA ./ No. 3339-40/Mum/2014, िनधारण वष /Assessment Year: 2010-11 ./ आयकर अपील सं./ITA ./ No. 6052/Mum/2014, िनधारण वष /Assessment Year: 2011-12 ./ Standard Chartered Bank (Taxn. Deptt) ACIT-(TDS)-3(2) C-38/39, G-Block, Behind MCA Club, Mumbai-400 002. 7th Floor,Finance Divn, Vs. BKC Bandra East,Mumbai-400 051. PAN: AABCS 4681 D (अपीलाथ /Appellant)

(यथ / Respondent)

Revenue by: Shri Manjunathswamy-CIT Assessee by: None सुनवाई क तारीख / Date of Hearing: 28/09/2017 घोषणा क तारीख / Date of Pronouncement: 08.11.2017

आयकर अिधिनयम, के अतग त आदे श अिधिनयम , 1961 क धारा 254(1)के Order u/s.254(1)of the Income-tax Act,1961(Act)

लेखा सदय, सदय,राजे के अनुसार/ ार/ -Per Rajendra,AM:Challenging the orders dated 14/03/2014 and 14/07/2014 of the CIT(A)-14, Mumbai the assessee has filed the present appeals for the above mentioned Assessment Years(AY.s). Assessee is a foreign bank and is providing banking services. Brief Facts: 2.Effective ground of appeal is about treating the payment made to vendors as professional / technical fees u/s.194 J of the Act.A survey action u/s. 133A of the Act was carried out at the business premises of the assessee on 01.02.2011, and statement of Sr. Manager (Taxation) were recorded on oath.The assessee was asked to explain TDS compliance in respect of certain expenses. Vide its letter ,dated 21/02/2011,the assessee filed details as required by the AO.After considering the same the AO observed that the assessee had made payments to M/s. Bloomberg Data Services Pvt. Ltd. (Rs.4.02 crores) , M/s. Reuter India Pvt. Ltd.(Rs.13.50 crores),and M/s. CRISIL Ltd. (Rs. 1.26 crores)during the year under consideration,that the assessee had deducted tax at source as per the provisions of section 194C of the Act.The AO was of the opinion that services rendered by the above referred three entities were of managerial and technical in nature and that the assessee should have deducted tax u/s.119J of the Act.He issued a notice u/s. 201(1) to the assessee to explain as to why it should not be treated as assessee in default for non deduction of tax as per the provisions of section

WWW.TAXSCAN.IN - Simplifying Tax Laws 3339-3340/M/14;6052/M/14- Standard Chartered Bank,

194J.The assessee filed its reply on 16/03/2011 stating that payment made by it was not royalty/fee for technical services. However, the AO was not convinced with the explanation filed and held that Reuter India Pvt. Ltd. and Bloomberg Data Services Pvt. Ltd.were providing online information and database,management services, intellectual property services, business auxilliary services, that CRISIL Ltd. was India’s leading rating, research, risk and policy advisory company, that they would provide high end research, that services provided by them are copyright protected, that they had provided services solely for the assessee’s internal business , that the data /information provided would be similar to that of providing technical or consultancy services as per provisions of section 194J of the Act. He also referred to the Explanation-2 of section -9(1)(vi) of the Act and stated that payment made by the assessee to the above mentioned three companies would attract provisions of section 194J of the Act, that Reuter India Ltd. had treated the receipt from the assessee as receipt chargeable u/s. 194J of the Act.Finally,he held that the assessee was in default u/s. 201(1) of the Act for non deduction of tax u/s. 194J to the tune of Rs.1.52crores. The assessee has also informed the AO that Bloomberg, Reuter and CRISIL had filed their respective returns of income for the year under appeal, that the returns included the income earned from the assessee, that as per the judgment of Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages Pvt.(293ITR226)demand for short/non deduction of tax could not be enforced , that due taxes were paid by recipient.The AO, referring to CBDT Circular No.275/201/95-IT(B), dated 29/01/1997 held that demand raised by him u/s. 201(1) could not be enforced. 3.Aggrieved by the order of AO the assessee preferred an appeal before the First Appellate Authority(FAA)and made detailed submissions. It also relied upon certain case laws.After considering the order of the AO,dated 30/03/2011 passed u/s. 201 of the Act and submission of the assessee, the FAA held that the assessee had paid subscription charges to three parties for license to use their data base,that the payment for subscription charges were in the nature of royalty.He referred to order of the Tribunal in case of Gartner Ireland Ltd.(ITA/7101/ Mum/2010)and held that the AO was justified in holding assessee

in default for not

deducting tax u/s.194J of the Act. 4.None appeared before us,as stated earlier.The Departmental Representative (DR) supported the order of the FAA. 5.We have the perused the material on record.We find that assessee had made payment to three parties under the head subscription charges,that it had deducted tax at source as per the 2

WWW.TAXSCAN.IN - Simplifying Tax Laws 3339-3340/M/14;6052/M/14- Standard Chartered Bank,

provisions of section 194C of the Act,that the AO and the FAA had held that tax should have been deducted as per provisions of section 194J,that Bloomberg, Reuter and CRISIL had shown the income received from the assessee,in their returns of income filed for the year under appeal.We find that basically it is a case of short deduction of tax and not a matter of non deduction of tax at source.Seconldy,the AO has also taken a notice of filing of returns by the recipients of the amounts in question.Respectfully,following the judgment of Hindustan Coca Cola Beverages Pvt.(supra)of the Hon’ble Supreme Court,we hold that there was no justification to hold the assessee an assessee-in -default.So,reversing the order of the FAA,we decide the effective ground of appeal in favour of the assessee. ITA.s/3340 & 6052/Mum/2014-AY.s.2010-11 & 2011-12: 6.Following our earlier order,we allow both the appeals of the assessee,as the facts and circumstances of both the appeals are similar to the facts of earlier appeal. As a result,all the appeals,filed by the assessee,stand allowed.

फलतः िनधा रती ारा दािखल क गई सारी अपील मंजूर क जाती ह

.

Order pronounced in the open court on 08th November , 2017. आदेश

क

घोषणा खुले

यायालय म !दनांक

Sd/(संदीप गोसांई /Sandeep Gosain) याियक सदय / JUDICIAL MEMBER

08 नवंबर , 2017

को

क

गई ।

Sd/(राजे / RAJENDRA) लेखा सदय / ACCOUNTANT MEMBER

Mumbai; !दनांक/Dated : 08.11.2017. Jv.Sr.PS. क ितिलिप अ ेिषत/Copy of the Order forwarded to : 1.Appellant /अपीलाथ# 2. Respondent /$%यथ# 3.The concerned CIT(A)/संब' अपीलीय आयकर आयु*, 4.The concerned CIT /संब' आयकर आयु* 5.DR “ E ” Bench, ITAT, Mumbai /िवभागीय $ितिनिध, खंडपीठ,आ.अ.याया.मुंबई 6.Guard File/गाड फाईल स%यािपत $ित //True Copy//

मुंबई

आदेश

/ BY ORDER, Dy./Asst. Registrar आयकर अपीलीय अिधकरण , मुंबई /ITAT, Mumbai. आदेशानुसार

/

उप सहायक पंजीकार

3

Standard Chartered Bank.pdf

However, the AO was not convinced with the explanation. filed and held that Reuter India Pvt. Ltd. and Bloomberg Data Services Pvt. Ltd.were. providing online information and database,management services, intellectual property. services, business auxilliary services, that CRISIL Ltd. was India's leading rating, research,.

95KB Sizes 3 Downloads 175 Views

Recommend Documents

CIR VS Standard Chartered Bank.pdf
CIR VS Standard Chartered Bank.pdf. CIR VS Standard Chartered Bank.pdf. Open. Extract. Open with. Sign In. Main menu.

Standard Chartered 16 January 2013 - Improving ... - CSE Global
Jan 16, 2013 - (50). 65. 0. 0. 0. EBITDA. 76. 69. 83. 83. 96. Other financing cash flow. 38. 0. 0. 0 .... exceed those shown in any illustration. ... are subject to fluctuation in exchange rates that could have a positive or adverse effect on the val

Google Message Security helped Standard Chartered Bank increase ...
To protect itself against spam and viruses, Standard Chartered Bank had implemented ... that the cost of ensuring security at each user end point was growing.

Google Message Security helped Standard Chartered Bank increase ...
messages they did not regard as spam), and there was concern that important emails could be lost. ... Google Message Security to provide complete email security. “Google's ... of email archiving and search technology. John concludes, “We ...

Untitled - Bombay Chartered Accountants' Society
Nov 8, 2014 - indirect tax like excise duty, service tax, sales tax .... bonus or commission for services rendered, where such ...... electrical fittings. 10%. 5,0. 0,0.

Untitled - Bombay Chartered Accountants' Society
Nov 8, 2014 - nature of activity carried on by the assessee viz. business, cases covered by Sec. ...... actual sale consideration has been considered as the same is .... v Gujarat State Road Transport Corporation (223 Taxmann 398) has ...

Chartered Accountant for Commissioner Information Technology ...
Chartered Accountant for Commissioner Information Technology and Communication, Rajasthan.pdf. Chartered Accountant for Commissioner Information ...

Chartered Accountants Consultancy Services for Narmada Control ...
Chartered Accountants Consultancy Services for Narmada Control Authority..pdf. Chartered Accountants Consultancy Services for Narmada Control Authority..

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
Feb 21, 2016 - (b)The following members were elected to the Central Council of ICAI .... Seminar on Information Technology under the aegis of Committee for ...

JKSPDC Limited Recruitment 2017 for Chartered Accountant.PDF ...
xperience in ERP/Doubte. ntry System. ; Cost. Accountant. 1 1 Pay Band of. Rs. 9300- ... Cost & Works ... Such candidates who have atready submitted their app.

Chartered Accountants can Demand High Remuneration.pdf ...
There was a problem previewing this document. Retrying... Download. Connect more apps... Try one of the apps below to open or edit this item. Main menu.

The Institute of Chartered Accountants of India
Sep 30, 2011 - I feel great pleasure at the initiative of the Committee for Capacity Building of CA Firms and .... capital gain, which ever is ... a) where a recognized public transport system exists – Max. ... Owning / Maintaining race horses. Yes

Empanelment of Chartered Accountant Firms for Maharashtra ...
Empanelment of Chartered Accountant Firms for Maharashtra Maritime Board.pdf. Empanelment of Chartered Accountant Firms for Maharashtra Maritime Board.

Hiring of Chartered Accountant for CSPTCL.pdf
2nd Floor, S.L.D.C. Building, Danganiya, Raipur(CG). PH: 011t-257 4321, 2514362, 257 4336, FAX: 077l-2514616. No :05-01/ GM(Fin)/rR-l o | 6L Dt. 10.0L.

Gold Standard Requirements V2.1 - The Gold Standard
Aug 1, 2008 - 0.5 Documents of Gold Standard version 2. .... generating resources such as coal-fired power plants, waste incineration plants, wind energy and biomass. ... renewable energies and energy efficient technologies. For business ...

Gold Standard Requirements V2.1 - The Gold Standard
Aug 1, 2008 - First Climate as a globally positioned company covering the entire carbon credit ..... design. The Gold Standard assumes a world where imperfect ... Standard does not in any way reflect back on an application to the CDM ...

Selection of Chartered Accountant Firm for Internal Audit Services to ...
Selection of Chartered Accountant Firm for Internal Audit Services to BPTSL.pdf. Selection of Chartered Accountant Firm for Internal Audit Services to BPTSL.pdf.

Page 1 Annual Conference 2016 Chartered Accountants - Transforming ...
and knowledge pool and resources and of course extends networking opportunities amongst professionals. Knowledge of best practices in critical and crucial areas are vital for the members. Role of Chartered Accountants has of late spread even to manag

BCS THE CHARTERED INSTITUTE FOR IT BCS HIGHER ...
Mar 27, 2014 - b) Define what is meant by an emergent property of a software ... You have been appointed as a project manager for a small company trying to.