The Director Of Income Tax(International Taxation v. M/S. Siemens Aktiengesellschaft

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1033 OF 2011 The Director of Income Tax(International Taxation). v. M/s. Siemens Aktiengesellschaft. ..Appellant. ..Respondent. Mr. Suresh Kumar for the Appellant. Mr. P.J. Pardiwala, Sr.Advocate with Mr. Sameer Chitnis i/by Crawford Bayley & Co. for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 20[th] November, 2012 PC: thus : Three questions of law are raised by the revenue read 1)Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that no income accrued to the assessee in India in respect of supply of equipment without appreciating that there existed a business connection of the assessee in India? 2)Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that when duty is cast on the payer to pay tax at source, on failure on the part of the payee, no interest u/s. 234B can be imposed on the payee assessee ignoring the fact that it is the liability of the payee to pay advance tax even on the amount which had not been deducted at source under section 195 of the Income Tax Act, 1961? 3)Whether on the facts and in the circumstances of the case and in law the ITAT was justified in holding that the income of the assessee arising on account of “Royalty and Fees for Technical Services” is taxable on receipt basis and not on accrual basis as held by the Assessing officer in the assessment order”? 2)As regards the first question is concerned, Counsel for the parties state that the said question stands answered against the revenue by the decision of this Court in the case of Director of Income Tax (International Taxation) v. M/s. Xelo Pty Limited in Tax Appeal No.825 of 2010 decided on 15/11/2011. In this view of the matter, the first question cannot be entertained. 3)As regards question second and third are concerned, Counsel for the parties state that the said questions stand answered against the revenue in Assessee's own case being Tax Appeal No.124 of 2010 decided on 22/10/2012. In this view of the matter, second and third questions cannot be entertained. 4)The appeal is disposed of accordingly with no order as to costs. (M.S.SANKELCHA, J.) (J.P. DEVADHAR, J.)