TaxTMI 
TaxTMI 
2014 (7) TMI 595
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....e following grounds:- 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the receipt from Serum Institute as not taxable as the assessee had rendered services outside India. The Ld. C.I.T.(A) has not appreciated the force of attraction principle in Article 7 of the Indo-UK DT AA. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding in favour of the assessee on the basis of his views for the Assessment years 1995-96 and 1996-97 u/s. 143(3)] without appreciating that those have not been accepted by the Department. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in allowing interest u/s. 234B of the Act on the basis of his orders ....
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....sessee challenged the said addition made in the total income on the ground that the assessee's entire receipts and the income has been the subject matter of scrutiny by the Assessing Officer denying the assessment proceedings and such an inclusion at this stage of proceedings under section 154, cannot be made. Apart from that, on merits also, it was contended that the said receipts cannot be taxed in India because no work has been carried out in India and, therefore, the same has neither arisen nor accrued in India. The learned Commissioner (Appeals) directed the Assessing Officer to exclude the amount of Rs. 3,22,278, from the total income after observing and holding as under:- "From the description of the work mentioned in the invoice an....
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....the learned Commissioner (Appeals) has held that the fees received for services rendered outside India by the assessee is not liable to be taxed in India, however, the fact remains that the Department's view had always been that such kind of a receipt are taxable in India, not only in this year but also in earlier year and subsequent years. Thus, he strongly supported the order of the Assessing Officer. 5. Before us, the learned Senior Counsel, Mr. S.E. Dastur, on behalf of the assessee, submitted that, first of all, in this case, the Assessing Officer has not issued any show cause notice to the assessee for enhancing the income which is in clear violation of the provisions of sub-section (3) of section 154. In support of this contention, ....
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.... 6. We have heard the rival contentions, perused the relevant findings of the authorities below and the material available on record. It is admitted fact that the proceedings under section 154, has been initiated on the application filed by the assessee, pointing out the mistake in the quantum of the receipts taken in the original assessment order. The same has been rectified by the Assessing Officer. However, the Assessing Officer without issuing any notice to the assessee, has enhanced the assessment by a sum of Rs. 3,22,378, which is in clear violation of the provisions of sub-section (3) of section 154, which provides that an amendment having effect on the enhancement of assessment shall not be made, unless a notice is given to the asse....