2014 (1) TMI 1356

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....me of the assessee from its branch in Malaysia. 2. The Assessing Officer in all the aforesaid AYs has held that the income of assessee's branch in Malaysia is assessable in India. The Assessing Officer further held that the assessee may be maintaining a fixed placed of business in Malaysia by forming a company under Malaysian Laws but the Malaysian Branch is not a permanent establishment. Aggrieved against the assessment orders for the respective AYs, the assessee filed appeals before the CIT(Appeals). The CIT(Appeals) followed the order of the Tribunal in assessee's own case in ITA Nos.956 to 959/Mds/2009 for the AYs. 2000-01, 2001-02, 2002-03 & 2005-06 titled M/s.Sivagami Holdings Pvt. Ltd., Vs. ACIT, wherein it has been held that the M....

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....e issue in appeal is squarely covered by the order of the co-ordinate bench of the Tribunal in ITA Nos. 956 to 959/Mds/2009 for the AYs. 2000-01, 2001-02, 2002-03 & 2005-06 decided on 31st May, 2011 (supra). Since there is no change in the facts and circumstances of the present case, fresh adjudication on the issue is not required. The ld.AR placed on record the copy of the aforesaid order of the Tribunal at Page Nos. 89 to 130 of the Paper Book. 6. On the other hand, Shri T.N. Betgeri, appearing on behalf of the Revenue fairly conceded that although the issue has been decided by the Tribunal in favour of the assessee, however, the department has preferred an appeal before the Hon'ble Madras High Court assailing the order of the Tribunal. ....

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....egistered as an assessee for the purpose of income-tax in Malaysia. The Malaysian branch of the assessee company is working after obtaining all the necessary licences and permits prescribed by the laws of that country. The Malaysian branch is managing the affairs of investment of the company made outside India. The Malaysian branch is also managing the properties in Malaysia and Singapore. The situs of the branch company is in Malaysia, which is outside India and that office is dealing in the affairs of the foreign investments of the assessee company and the branch office has been established as an independent legal entity in accordance with the Malaysian laws and in such circumstances there is no much force in the argument of the CIT(Appea....

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....hands of the Malaysian branch of the assessee company is rent and interest income. They are all generated from assets situated outside India. Therefore, 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". The ld.DR has not placed on record any order of the higher authorities, vide which the afore mentioned order of the Tribunal has been stayed or reversed. Therefore, as on day, the order of the Tribunal holds good. Respectfully following the same, we hold that the Malaysian Branch of the assessee is having permanent establishment in....