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TMI Blog2014 (1) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company the status of a permanent establishment operating in Malaysia - the taxability of the income of the assessee and its Malaysian branch is governed by the DTAA entered into between India and Malaysia - The income generated in the hands of the Malaysian branch of the assessee company is rent and interest income - They are all generated from assets situated outside India – thus, as per the terms of the DTAA the income of Malaysian branch of the assessee company is liable for taxation in Malaysia - Once it is liable for taxation in Malaysia, DTAA makes it clear that the said income is not subjected to the jurisdiction of Indian taxation – Decided against Revenue. - I.T.A. Nos. 1486, 1487 & 1488/Mds/2013 & C.O. Nos. 143, 144 & 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions in respect of afore mentioned three AYs assailing the findings of the CIT(Appeals) upholding the re-opening of the assessment proceedings. On merits, the assessee has supported the order of the CIT(Appeals). 4. The assessee is an investment company. The assessee is having its branch in Malaysia which is also in the same business. The foreign investments are managed by assessee's Malaysian Branch through its duly appointed agent. The assessee also acquired property in Singapore besides immoveable property at Malaysia from which it is having rental income. The assessee in its return of income had admitted foreign income from Kualampur (Malaysia) Branch. The assessee has claimed exemption on the income so earned in view of DTAA betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elow as well as the order of the Tribunal in ITA Nos.956 to 959/Mds/2009 decided on 31-05-2011(supra). We find that the issue with regard to permanent establishment status of Malaysian Branch of the assessee in Malaysia has already been adjudicated by the Tribunal. The Tribunal in its detailed order has taken into consideration various judgments including the judgment of the Hon'ble Supreme Court of India in the case of Union of India another Vs. Azadi Bachao Andolan another reported as 263 ITR 706. After considering the facts of the case and various decisions, the Tribunal held that the Malaysian branch of the assessee has the status of permanent establishment in Malaysia. The Tribunal further held on merits that, the income of Malaysi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by himself. The assessing authority has no such a case. It is to be seen that especially in cases of income escaping assessment, the appellate authorities are not expected to enlarge the scope of the enquiry determined by the notice issued under section 148. In the present case the CIT(Appeals) has travelled beyond the reason recorded by the assessing authority and imported fresh reasons to dispel the arguments of the assessee. 40. Therefore, in the facts and circumstance of the case there is nothing on record to deny the Malaysian branch of the assessee company the status of a permanent establishment operating in Malaysia. When this is the factual position, the question to be looked into is whether the income generated by the said Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smissed. 8. The assessee has filed cross-objections against the order of the CIT(Appeals) assailing the findings of the CIT(Appeals) on the issue of re-opening of the assessment proceedings. The ld.AR has not raised any arguments on the issue. Moreover, we find that the order of the CIT(Appeals) on the issue of re-opening is detailed and justified and thus calls for no interference. Accordingly, the cross-objections of the assessee for the three AYs are dismissed. 9. In the result, all the three appeals of the Revenue i.e., I.T.A. Nos. 1486, 1487 1488/Mds/2013 and all the cross-objections of the assessee i.e., C.O.Nos.143, 144 145/Mds/2013 are dismissed. Order pronounced on Wednesday, the 15th January, 2014 at Chennai. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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