ITAT affirms CIT(A)'s decision to delete Rubamin FZC's profits from assessee's income for A.Y. 2015-16 & 2016-17

The ITAT upheld the decisions of the Ld. CIT(A) to delete the additions of Rubamin FZC's profits in the assessee's hands for A.Y. 2015-16 and 2016-17. The Department's appeals were dismissed for both assessment years based on consistent legal reasoning and precedent rulings in favor of the assessee.

---

---

Issues involved:
Department's appeal against deletion of addition of profit of Rubamin FZC in UAE in assessee's hands as a colorable device for profit shifting.

Issue 1: A.Y. 2015-16
- Facts: Department appealed against deletion of addition of Rs. 73,24,47,597/- representing profit of Rubamin FZC in UAE as income of the assessee.
- Observations: Assessing Officer treated RFZC, UAE as a paper company with no actual activity, adding its entire profit to the assessee's income.
- Decision: Ld. CIT(A) deleted the addition based on ITAT's previous ruling in favor of the assessee for A.Y. 2009-10 to 2014-15.
- Conclusion: ITAT upheld Ld. CIT(A)'s decision, citing previous rulings favoring the assessee, dismissing the Department's appeal for A.Y. 2015-16.

Issue 2: A.Y. 2016-17
- Facts: Similar to A.Y. 2015-16, Department contested deletion of Rs. 40,91,89,643/- addition as profit of Rubamin FZC in UAE.
- Observations: Assessing Officer attributed RFZC, UAE's profit to the assessee, leading to the addition.
- Decision: Ld. CIT(A) relied on ITAT's precedent in the assessee's favor for A.Y. 2011-12 to 2014-15, directing deletion of the addition.
- Conclusion: ITAT dismissed the Department's appeal for A.Y. 2016-17, aligning with the decision for A.Y. 2015-16 based on consistent legal reasoning.

Final Verdict: ITAT upheld Ld. CIT(A)'s decisions to delete the additions of Rubamin FZC's profits in the assessee's hands for both A.Y. 2015-16 and 2016-17, citing precedent rulings and lack of grounds for interference. The appeals of the Department were consequently dismissed for both assessment years.

---