9911796707
TMI Blog2012 (12) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... amed M/s IAL Container Line (UK) Limited. 3. The facts relating to the case are stated in brief. The assessee-company is an Indian Company registered under the Companies Act, 1956. It is engaged in the business of shipping and global freight forwarding. It filed its return of income for the year under consideration on 09-10-2002 declaring a loss of Rs. 3,31,829/-. The said return was processed u/s. 143(1) of the Act by accepting the loss declared by the assessee. The Department carried out survey operations at the premises of I.A.L. Container Line India Limited Group on 24-08-2007. The assessee appears to be one of the companies belonging to that group. From the appraisal report of the survey operations, it was noticed that the assessee-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utta) P Ltd, IAL (Delhi) P Ltd etc. (For the sake of convenience, we may refer them as "Decentralised companies"). It appears that these decentralised companies, which were registered and assessed in Mumbai, claimed that the income from shipping business is exempt as per the "DTAA" entered between India and U.K. It appears that the respective assessing officers have denied DTAA benefit to them. It is stated in the instant assessment order that the decisions of the respective AOs to deny DTAA benefit to these decentralised companies were reversed by Ld CIT(A) and after the receipt of the order of Ld CIT(A), the registered offices of these decentralised companies were shifted all over India. Since the Assessing officers denied DTAA benefit to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agencies (Mumbai) Ltd are one and same company or different companies). It appears that the company named IAL Shipping Agencies (Mumbai) Ltd claimed that it was acting as an agent of the "UK Company" and further it was claimed that the income of the UK Company is exempt under the DTAA entered between Central Government and Government of U.K. Since the claim of agent-principal relationship was denied, the department assessed the entire income derived from shipping business in the hands of I.A.L. Shipping Agencies (Mumbai) Ltd. By following the said assessment order, the Assessing Officer, in the instant case also, held that the assessee here in is also acting independently and not as an agent of the UK Company. Accordingly he completed the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not immediately furnish the relevant details, but submitted that there existed parity of facts. We also notice that the Ld. CIT(A) has placed reliance on the various explanations and information furnished by the assessee during the course of appellate hearing without confronting the same with the Assessing Officer. Further, the Ld CIT(A) did not discuss anything about the details of evidences that were placed before him. Though, it is mentioned that the income collected on behalf of the assessee-Company is exempt as per DTAA agreement, yet the Ld. CIT(A) did not discuss about the relevant Articles under DTAA and how those articles are applicable to the facts prevailing in the instant case. 8. It cannot be disputed that the income in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the UK Company, in view of sec. 5 of the Act discussed supra, the said UK Company is also liable to pay tax on its Indian income. If it claims that it is not liable to pay to pay tax as per the DTAA entered by the Central Government with the Government of UK, then it is the responsibility of the assessee- Company or the UK Company to demonstrate that the impugned income is covered by the articles prescribed under the DTAA and hence its income is not taxable under the Indian Income Tax Act. 10. The foregoing discussions show that the relationship between the assessee- Company and the UK Company needs to be examined at the end of the AO in order to find out whether the assessee-Company is really acting as the agent of the UK Company. F ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
