Case Law Details
ACIT Vs Credit Suisse AG (ITAT Mumbai)
Held that accounts of foreign company are not prepared as per companies act and are not laid in Annual General Meeting before the shareholders of the company. Hence, provisions of section 115JB of the Income Tax Act cannot be made applicable to a foreign company.
Facts-
Ld. AO sought to invoke the provisions of Section 115JB of the Act as the assessee being a foreign company during the course of assessment proceedings. The assessee vide letter dated 06/11/2017 stated that CSSB and CSMB are both branch offices of CSAG (assessee herein) as such they form part of the same legal entity i.e. CSAG (within the meaning of Section 2(31) of the Act. It was submitted that the Indian sourced income earned by all branches of CSAG have been reported in consolidated income tax returns filed by CSAG for A.Y.2015-16.
The assessee submitted that the provisions of Section 115JB were never intended to apply the foreign companies in support of which the assessee placed reliance on the speech of Hon’ble Finance Minister while introducing the relevant provisions in Parliament. The ld. AO however, disregarded the contentions of the assessee and proceeded to invoke the provisions of Section 115JB of the Act to the foreign company. This action of the ld. AO was upheld by the ld. CIT(A).
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