2018 (6) TMI 603
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....by the A.O. u/s 14A, as the assessee has claimed deduction of expenses in relating to income which is exempt from tax. 2. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of appellate proceedings before Hon'ble ITAT." 2. Facts of the case in brief: Assessee filed its return of income on 31.10.2006 declaring total income of Rs. 323,56,23,021/- which was processed u/s 143(1) of the Income Tax Act, 1961 (the Act) at the returned income and subsequently case was selected for scrutiny and notice u/s 143(2) was issued and assessment was completed u/s 143(3) on 30.11.2009 at an income of Rs. 355,10,00,239/- comprising disallowance u/s 14A read with Rule 8D(2)(ii) of Rs. 11,42,32,000/-....
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....e 8D. 3. Aggrieved by the order of Ld.CIT(A) assessee preferred appeal before this Tribunal. 4. Ld.DR placed reliance upon the order of Ld.AO and submitted that assessee is receiving relief u/s 90 r.w. DTAA with Oman at 30% on the dividend income received by PE from OMIFCO, Oman. 5. On the contrary Ld.AR placed reliance upon the orders of the Coordinate Bench of this Tribunal for A.Y. 2006-07, 2008-09 and 2009-10 wherein direction had been passed to Ld.AO to recompute the disallowance u/s 14A by excluding the investments made by assessee in OMIFCO, Oman. 5.1. Ld.AR has placed reliance upon a chart wherein the details of dividend received by assessee have been bifurcated which is as under: - Sl. No. Particulars Amount - Rs. A. ....
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....ii) income received outside India, (iii) income accruing or arising or deemed to accrue or arise in India, and (iv) income accruing or arising outside India. Thus, the Act provides for levying tax on global income of a person resident in India. The provisions of the Act, including Section 5, which provides for taxation of global income of a resident are "subject to the provisions of this Act. It was submitted that the levy of income tax on global income of an Indian resident is thus subject, inter- alia, to provisions of Section 90(2) of the Act, in terms of which provisions of DTAA entered into by India with any other country would apply and prevail over the provisions of the Act, to the extent the provisions of such DTAA are more benefici....