2011 (3) TMI 1819 - AT - Income Tax

Summary

Issues involved:
The judgment involves appeals by the revenue and cross objections of the assessee against the combined order of Ld. CIT(A)- XXIX, New Delhi dated 11.02.2010 for the assessment years 1999-2000 to 2002-03.

Issue 1: Assessment of Income
The assessee's income was assessed by the Assessing Officer based on gross broking fee earned, with deductions for commission network expenditure and data processing fee. The tribunal previously held that only 15% of revenue generated from bookings made within India is taxable in India. As the expenses allowed exceeded 15% of gross revenue, no income of the assessee was found taxable in India for the relevant years.

Issue 2: Cross Objections
The cross objections raised by the assessee regarding business connections in India, accrual and arising of income, deemed accrual and arising of income, and existence of Permanent Establishment (PE) in India were previously decided against the assessee by the tribunal for assessment years 1995-96 to 1998-99. The Hon'ble Delhi High Court upheld the tribunal's decision, dismissing both revenue and assessee's appeals.

Judgment Summary:
The Ld. CIT(A) was justified in holding that only 15% of the revenue accrued/arose in India, as per the tribunal's decision in the assessee's own case for earlier years. This decision was upheld by the Hon'ble Delhi High Court, rendering the appeals of the revenue and cross objections of the assessee liable to be dismissed. Therefore, all four appeals of the revenue and cross objections of the assessee were dismissed based on the previous tribunal decision and the judgment of the Hon'ble High Court of Delhi.

The order was pronounced in the open court on 17th March, 2011.