2012 (10) TMI 1181

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....(a) whether or not the CIT(A) was justified in holding that the assessee had any tax withholding obligations with respect to payment of ₹ 90,65,000, made to Triginta Travels and Tours, Sweden, for inbound group tour arrangements in Scandinavia; and (b) whether or not the CIT(A) was justified in disallowing the loss of ₹ 8,40,261 incurred by the assessee in respect of conducted Europe tour organized for Vasavdutta Cement Ltd. 3. So far as the first ground of appeal is concerned, the relevant material facts, as culled out from material on record, are like this. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has made a payment of Euros 1,60,440 (equivalent to INR 90,65,000) t....

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.... us. 4. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case as also the applicable legal position. 5. We have noted that while learned CIT(A) has elaborately reproduced the submissions of the assessee so far the taxability of the income embedded in payment to the Swedish company, under the provisions of India Swedish DTAA, is concerned, he has not at all dealt with the same. It is only elementary that the provisions of the Income Tax Act, 1961 can come into play in respect of an assessee, who is covered by the provisions of a duly notified double taxation avoidance agreement, only to the extent the same are beneficial to the assessee. In other words, therefore, as long as an i....

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....eem it fit and proper to remit the matter to the file of the CIT(A) for fresh adjudication on merits in the light of our observations above. While so adjudicating the matter afresh, the CIT(A) will deal with all the arguments of the assessee by way of a speaking order, in accordance with the law and after giving yet another opportunity of hearing to the assessee. 6. Ground Nos. 1 to 4, which deal with the above grievance, are thus allowed for statistical purposes in the terms indicated above. 7. Coming to the second issue, i.e. deductibility of the loss of ₹ 8,40,261 incurred by the assessee in respect of conducted Europe tour organized for Vasavdutta Cement Ltd., is concerned, the relevant facts are as follows. During the course of....