EBZ SE vs. ADIT-CPC

Parties Involved

Facts Summary

The assessee, a Germany based foreign company with no Permanent Establishment (PE) in India, filed its return of income for the year under consideration on 28.09.2019, declaring total income at Rs.1,59,75,470/-. The Assessing Officer (A.O.) made additions on surcharge of Rs.31,951/- and cess of Rs.65,180/- at a flat rate of 10% on the amount of tax computed, raising a demand of Rs.1,17,571/- along with interest charged u/s. 234B and 234C of the Act. The assessee challenged this order before the Commissioner of Income Tax (Appeals) -56, Mumbai (CIT(A)), but the CIT(A) upheld the order of the A.O. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), Mumbai, challenging the CIT(A)'s order.…

Legal Issues

• 1. Gross error in raising tax demand of Rs.1,17,571/-
• 2. Computing surcharge and cess of Rs.97,131/- without giving due regard to Article 12 of the India-Germany DTAA
• 3. Charging surcharge and cess of Rs.97,1331/- by applying the provisions of the Act regardless of the fact that the DTAA provisions are more beneficial to the appellant
• 4. Charging interest u/s. 234B and 234C being consequential in nature

Judgment Outcome

Decided in favour of Assessee.

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