2025 (7) TMI 1301

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....f orders dated 26.11.2021, 28.11.2021, 17.11.2022 and 19.02.2023 of the Assistant Commissioner of Income Tax (International Taxation)- 2(1)(1) hereinafter referred to as "Ld. AO") under Section 143(3) of the Act for the assessment years 2018-19 to 2021-22 respectively. 2. All the four appeals involve same/similar facts, grounds and issues. Therefore, the appeals were heard together for the sake of convenience. 3. Brief facts of ITA No. 2870/Del/2024 are that assessee company M/s. Italian Thai Development Public Company e-filed return of income on 30.11.2018 declaring nil income for assessment year 2018-19. The case was selected for scrutiny. Notice under Section 143(2) of the Act dated 22.09.2019 was issued. The assessee filed require....

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....ng the matter, Ld. AO vide order dated 26.11.2021 made additions of Rs. 1,72,87,003/- and Rs. 9,11,50,646/-. 6. Similarly, Ld. AO passed order dated 28.11.2022, 17.11.2022 and 19.02.2023 for assessment years 2019-20, 2020- 21 and 2021-22 respectively. 7. Being aggrieved, appellant/assessee preferred appeals against the assessment orders dated 26.11.2021, 28.11.2021, 17.11.2022 and 19.02.2023, passed under Section 143(3) r.w.s. 144C(3) of the Act before Ld. CIT(A) which were allowed vide separate orders dated 15.03.2024. 8. Being aggrieved, Appellant/Revenue preferred present above cited appeals, in ITA No.2870/Del/2024, following are grounds of appeals: "1A. The Ld. CIT(A) has erred in holding that there is no provision un....

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....of Article-12 of the India-Thailand DTAA deciding that income earned by H.O. can be set off with the losses of PE even when the PE is neither owner nor performed any activity with regard to such income of H.O." 9. Learned Authorised Representative for Revenue submitted that Ld. CIT(A) erred in holding that EP with income earned by HO. When, it has been specified in clause 1 and 2 of Article 7, principles of res judicata is not applicable in the instant case as every year is treated as separate in Income-Tax Act, 1961. 10. Learned Authorised Representative for assessee submitted that the respondent company had earned and also disclosed income in the nature of royalty and fees for technical services (FTS) while filing its returns of inc....

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....ssee through its HO. Assessee has a single PAN Number, i.e. AABCI2013D and the Ld. Assessing Officer's contention of segregating the company into two entitles, thereby disallowing the set off of losses, is incorrect and is not according to law. In para no.5.1.1, Ld. CIT(A) has held as under: "5.1.1 Grounds No. 1 to 5 are inter-connected and relate to the primary issue of disallowance of set-off of losses of Permanent Establishment (PE) with the Royalty and FTS earned by the Head Office (HO). On perusal of assessment order and submission made by the appellant, following findings have emerged: (a) On perusal of the assessment order, it is noted that the Ld. AO has tried to segregate the appellant into two entities while disa....