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TMI Blog2023 (9) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... eration in quantum appeal and therefore the Ld. CIT(A) has rightly not considered it in rectificatory proceeding. For the reasons set out above we do not find any substance in the appeal of the Revenue which we reject. - Shri G.S. Pannu, Hon ble President And Ms. Astha Chandra, Judicial Member For the Assessee : None For the Department : Shri Sanjay Kumar, Sr. DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the Revenue is directed against the order of the Ld. Commissioner of Income Tax, (Appeals), Delhi-42 ( CIT(A) ) dated 17.06.2022 pertaining to Assessment Year ( AY ) 2014-15. 2. The Revenue has raised the following grounds of appeal: 1. The Ld. CIT(A) has erred in holding that the expense made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Singapore based company, M/s FCS Computer Systems S Pte. Ltd. Being a branch office of a foreign parent company, PAN of the branch and a parent company is same, The appellant procures software, services from its Head Office M/s FCS Computer Systems (S) Pte. Ltd. and sells the same to its Indian clients. The appellant made the remittance of Rs. 2, 25, 29,243/- to its head office against the procurement of software, services and reimbursement of expenses. Withholding had been done on the remittance and withholding tax had been deposited in the same PAN AAACF7319J. Thus, the withholding tax deducted on payment to the parent company, is reflected in the Form 26AS of the appellant branch, which gives an impression that this is an income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the submission of the Ld. DR and perused the records. The rectificatory order is silent on facts. However, the facts found by the Ld. CIT(A) as stated by him in para 3 of his appellate order are reproduced herein under:- 3. Facts in brief as culled out from record are that the appellant is a Branch of a Singapore company engaged in sale of software and hardware products and rendering service relating to maintenance of software. It filed return of income declaring Nil income. The case was taken up for scrutiny. The assessment was finalized u/s 143(3) of the Act determining the total income of Rs. 54,91,720/- after making addition of Rs. 50,09,429/- by treating the payment made by the appellant to its head office for purchase of softw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee of being heard enshrined in sub-section (3) of section 154 of the Act. 10. On perusal of the order of the Ld. CIT(A), we find that he has given a clear finding that the sum of Rs. 2,25,29,243/- represents the allowable expense of the assessee and not its alleged undeclared income . This finding of the Ld. CIT(A) remained uncontroverted before us. We concur with the findings of the Ld. CIT(A). Further, the issue of allowability of the said expense was the subject matter of consideration in quantum appeal and therefore the Ld. CIT(A) has rightly not considered it in rectificatory proceeding. For the reasons set out above we do not find any substance in the appeal of the Revenue which we reject. 11. In the result, the appeal of the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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