The Mumbai bench of Income Tax Appellate Tribunal (ITAT) has recently dismissed an issue pertaining to applicability of tax rate provided under India-Mauritius (DTAA) to dividend declared by Ambuja Cement.
The assesee Ambuja Cements Limited filed Miscellaneous Application under section 254(2) of the Income Tax Act for seeks recall/rectification of the order passed under section 254(1) of the Income Tax Act by the coordinate bench of the Tribunal in assessee’s appeal, for the assessment year 2010–11 to the extent of adjudication of ground no.8 raised in assessee’s appeal.
Yogesh Thar, Counsel for the assessee submitted that assessee raised an issue pertaining to the applicability of the rate of tax provided in India Mauritius Double Taxation Avoidance Agreement (DTAA) to the dividend declared by the assessee. However, the coordinate bench of the Tribunal dismissed the said ground as not pressed.
Further similar grounds raised in appeals for assessment years 2011-12 and 2012-13, which were also decided vide the common order dated 07/11/2012, were remanded to the file of the Assessing Officer for adjudication on merits.
When the issue was filed before the first appellate authority the same was dismissed.
Dr. Samuel Pitta, Counsel appearing for the revenue, did not bring anything on record to contradict the submissions made on behalf of the assessee.
It was observed by the tribunal that the assessee also raised a similar issue in its appeal for assessment years 2011-12 and 2012-13, which were remanded to the Assessing Officer for adjudication on merits.
Further, the issue of the applicability of the rate of tax provided in the DTAA on dividend declared by the assessee was also raised before the learned Commissioner Income Tax (Appeals) by way of an application seeking admission of additional ground.
The learned Commissioner Income Tax (Appels) though rejected the prayer of admission of additional ground.
Therefore the two member bench of B.R. Baskaran (Accountant Member) and Sandeep Singh Karhail (Judicial Member) observed that the issue arising in Ground No.8 is covered in favour of the Revenue by the recent decision of the Special Bench of the Tribunal in DCIT v/s Total Oil India Private Ltd.
Thus, the bench dismissed the ground no.8 raised in assessee’s appeal for the assessment year 2010- 11.
Subscribe Taxscan Premium to view the Judgment
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
