2018 (10) TMI 414 - AT - Income Tax

Income earned from Indian concerns towards fee for technical services and allocation of expenses - Held that - We have passed a separate order in respect of the assessment year 2000-01. As the facts and circumstances of the instant appeal are admittedly mutatis mutandis similar to those of the immediately preceding year, we set aside the impugned order and remit the matter to the file of the Assessing Officer for deciding the issue of income earned from Indian concerns towards fee for technical services and allocation of expenses in the light of our order given today for such preceding year. The assessee will be allowed a reasonable opportunity of being heard in such proceedings. Appeal is allowed for statistical purposes.

Summary

Issues:
1. Appeal against CIT(A) order for assessment year 2001-02.
2. Similarity of issues with the preceding year's appeal for assessment year 2000-01.

Analysis:
1. The appeal filed by the assessee challenges the order of the CIT(A) for the assessment year 2001-02. After hearing both parties and reviewing the relevant material, it was noted that the issues raised in this appeal were similar to those discussed in the previous year's appeal for the assessment year 2000-01. No separate arguments were presented for this appeal, and the arguments from the preceding year were adopted by both sides. A separate order was issued for the assessment year 2000-01. Given the similarity of facts and circumstances between the two years, the impugned order was set aside, and the matter was remitted to the Assessing Officer for a decision on the income earned from Indian concerns for technical services and expense allocation based on the order for the preceding year. The assessee will have a fair opportunity to present their case in the proceedings.

2. The Tribunal allowed the appeal for statistical purposes, indicating that the decision was made based on the specific circumstances of the case without setting a precedent. The order was pronounced in open court on a specified date. The judgment provided a clear direction for the Assessing Officer to re-examine the issues in light of the previous year's order, ensuring a fair and consistent approach in determining the income and expenses related to technical services provided by Indian concerns.