Are corporate management services and reimbursement of expenses, a part of stewardship activities?

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCHES “A”, BANGALORE
Before Shri Chandra Poojari, AM & Shri George George K, JM
IT(TP)A No.1150/Bang/2015: Asst.Year 2010-2011
IT(TP)A No.316/Bang/2016: Asst.Year 2011-2012

M/s.CAE India Private Limited
Survey No.26-27,
Bandaramanahalli Village,
Anneshwara Panchayat,
Kasaba Hobli
Bangalore – 562 110.
PAN : AAECM3338G.

(Appellant)

vs

The Dy.Commissioner of
Income-tax, Circle 2(1)(1)
Bangalore.

(Respondent)

IT(TP)A No.585/Kol/2015: Asst.Year 2010-2011
IT(TP)A No.310/Bang/2016: Asst.Year 2011-2012

The Dy.Commissioner of
Income-tax, Circle 2(1)(1)
Bangalore.

vs

M/s.CAE India Private Limited
Survey No.26-27,
Bandaramanahalli Village,
Anneshwara Panchayat,
Kasaba Hobli
Bangalore – 562 110.
PAN : AAECM3338G.

CO No.31/Kol/2015: Asst.Year 2010-2011

M/s.CAE India Private Limited
Survey No.26-27,
Bandaramanahalli Village,
Anneshwara Panchayat,
Kasaba Hobli
Bangalore – 562 110.

vs

The Dy.Commissioner of
Income-tax, Circle 2(1)
Kolkata.

Appellant by : Sri. Sumeet Khurana, CA
Revenue by : Sri.Rajendra Kumar Mishra, CIT-DR
Date of Hearing : 30.08.2021
Date of Pronouncement : 30.08.2021

O R D E R

These are cross appeals by the assessee and Revenue. These appeals and are directed against the final assessment orders passed u/s 143(3) r.w.s. 144C of the I.T.Act. The relevant assessment years are 2010-2011 and 2011-2012. The assessee has also preferred a Cross Objection for assessment year 2010-2011.

2. At the time of hearing before the Tribunal, the learned AR submitted that the additional ground is raised for the first time before the Tribunal as it was inadvertently not raised before the Income Tax Authorities.

3. After hearing both the parties and perusing the material on record, we are of the view that this additional ground raised by the assessee will go to the root of the matter. Hence, we admit the additional ground raised by the assessee, which would not require any fresh investigation into facts of the case, by following the dictum laid down by the Hon’ble Apex Court in the case of National Thermal Power Co. Ltd. v. CIT (supra).

4. Since we have remitted the issue raised in the additional ground to the files of the DRP, which will go to the root of the matter, we are refrained from adjudicating the grounds raised in the assessee’s appeals.

5. In the result, the appeals filed by the assessee are allowed for statistical purposes and the appeals filed by the Revenue and the cross objections filed by the assessee are dismissed.
Order pronounced on this 30th day of August, 2021.

Please find attached the enclosed file for the full judgement.