SHELL INTERNATIONAL B.V. Vs. INCOME TAX OFFICER
LAWS(IT)-2014-5-41
INCOME TAX APPELLATE TRIBUNAL
Decided on May 09,2014

Appellant
VERSUS
Respondents

JUDGEMENT

MUKUL KUMAR SHRAWAT - (1.) THIS Misc. Application has been filed by the applicant on 27th of September, 2013 arising from the order of the Tribunal as per the nomenclature hereinabove, dated 07.08.2013.
(2.) THE main grievance of the applicant as pointed out by learned AR, Mr. Dhinal Shah is as under: "4.7 However, the Appellant humbly and most respectfully submits that while passing the impugned order, it seems that Your Honours have inadvertently also directed the learned assessing officer to verify the claim of deductibility of the expenditure in the hands of the Hazira entities if in case the amounts do not qualify as FTS. 4.8 In this regard the Appellant respectfully submits that the issue in the appeal relates to taxability of service rendered by the Appellant and not on the deductibility of the claim of expenditure by Hazira entities. Hazira entities are altogether separate entities regularly assessed to tax in their respective jurisdictions. Accordingly directing the learned assessing officer to verify the claim of expenditure of Hazira entities is beyond the scope of the current appeal. "
(3.) FURTHER , learned AR has argued that the Tribunal is empowered to pass an order only in respect of the subject matter of the appeal and the grounds raised, but has no power to give direction in respect of an another person who is not in appeal. By directing the AO to find out the business expenditure in the hands of Hazira parties, the Tribunal has exceeded its jurisdiction because the Hazira parties were not in appeal before the Tribunal. Hence, learned AR has pleaded that the subject matter of appeal was about taxability of payment received by the appellant, namely, Shell International BV for the services rendered and not whether the said payment was allowable as a deduction for Hazira entities. Therefore, the direction for verification of claim of expenditure by Hazira entities was beyond the subject matter of the parties. In support of this case law cited is F. Y. KhambhatiVs. Commissioner of Income Tax, 61 ITR 30 (Guj). From the side of the respondent, learned Sr.D.R., Mr. O.P. Batheja has supported the order of the Tribunal and argued that only by ascertaining the fact of claim of expenditure in the hands of Hazira parties a correct decision shall be arrived by the AO; hence, such a direction cannot be held as out of the subject matter of the appeal.;


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