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Case Law Details

Case Name : Cooperative Rabobank U A Vs CIT (Bombay High Court)
Appeal Number : Writ Petition No. 1028 of 2021
Date of Judgement/Order : 27/08/2021
Related Assessment Year : 2002-03
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Cooperative Rabobank U A Vs. CIT (Bombay High Court)

Petitioner has fled Form-1 stating that it is eligible for payment of 50% of disputed tax as according to Petitioner the pending appeal is Revenue Appeal, whereas department has treated the same as dispute due to Assessee Appeal, requiring Petitioner to pay 100% of disputed tax. There being no other dispute, the issue at hand is whether the Appeal pending before the ITAT is a Revenue Appeal or an Assessee Appeal.

Table in Section 3 of the DTVSV Act suggests that in the case of an eligible Appellant, if it is a non search case, then the amount, that is payable would be 100% of the disputed tax, if it is a search case, then it would be 125% of the disputed tax. However, in a case where the Appeal is filed by the Income Tax authority, the amount payable shall be one-half of the amount calculated. The question is whether Petitioner is eligible for payment of 50% of disputed tax or 100%.

In this case, assessing officer had made addition with respect to permanent establishment in the case of Petitioner and consequently denied it benefits of the double taxation avoidance agreement. The entire income was taxed at 40% instead of 10% as declared by Petitioner. Then the matter was appealed to CIT(A). The additions were deleted. Against the said deletions, the Department filed an Appeal before the ITAT being ITA No.4632/MUM/2006 against the order of CIT(A). The Tribunal restored the matter back to the assessing officer for fresh examination. It is stated that the Department had accepted this order of the ITAT. However, Petitioner challenged this order before this Court.

This Court, by its order dated 29th August, 2018, answered the substantial questions of law in favour of the assessee and against the Revenue and set aside the order of the Tribunal. This Court restored the Revenue’s Appeal to the file of the Tribunal for a decision afresh on merits and in accordance with law.

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