2021 (12) TMI 1359

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....f the case and in law, the impugned assessment order passed by the Learned Deputy Commissioner of Income-tax, Circle 3(i)(i), Intl. Taxation, New Delhi ("Ld. AO") pursuant to the directions issued by the Learned Dispute Resolution Panel-II ('Ld. DRP') under Section 143(3) read with section 1440(13) of the Income-tax Act, 1961 ('the Act') is wrong and bad in law. 2. That on the facts and in circumstances of the case and in law, the Ld. AO as well as the Ld. DRP grossly erred in treating the amount derived by the Appellant on account of distribution revenue from Turner International India Private Limited ('TIIPL') as royalty under Section 9(i)(vi) of the Act and also as per the provisions of India-USA Double Taxation Avoidance Agreem....

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....ct." 3. Ground No.1 is of general in nature and needs no separate adjudication. 4. Ground No. 2 to 5 are interlinked and taken up together. At the very outset the counsel for the assessee stated that while disposing of the objections raised by the assessee, the DRP dismissed the objections by observing "the subject matter of objection have been considered and decided by the DRP in its directions for A.Y.2010-11, 2012-13 and 2013-14 wherein the draft assessment orders of the Assessing Officer have been upheld. In the DRP directions dated 03.03.2017 for A.Y.2013-14 the DRP has upheld the AO's draft order". 5. The Counsel drew our attention to the decision of this Tribunal dated 30.09.2020 in ITA No.1343Del/2014, 631/Del/2015, 4087/De....

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....assessee derived revenue from Apalya Technologies Pvt. Ltd. and Parragon Publishing India Pvt. Ltd. during the year on which taxes were withheld at source. When the assessee claimed the credit of TDS the same was denied by the AO and the DRP by holding that since the assessee has not offered the revenue as its income during the year in its return of income the credit for TDS cannot be given. 15. The assessee raised objections before the DRP and the DRP while dismissing the objections raised by the assessee observed as under :- 16. Before us the counsel vehemently stated that since the taxes have been withheld by the payers and even if the corresponding income has not been shown as taxable in India, the credit of the TDS cannot be deni....

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.... reason to interfere with the findings of the DRP. Ground No.7 is accordingly dismissed. 21. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 08.12.2021. ============= Document 1 54. Thus, we hold that the distribution revenue earned by the appellant-assessee cannot be taxed as royalty albeit as a business income. Since, assessee has already offered income as business income in terms of the MAP, therefore, the income as declared by the assessee in accordance with the MAP and accepted by the Department in the earlier years has to be accepted. Accordingly, the additions made by the Assessing Officer are deleted. Document 2 2.2.2 The facts of the matter i....