Department ACIT (International Taxation), New Delhi M/s. Mitsui & Co. Ltd., New Delhi

This case involves an appeal by the Revenue against a decision concerning M/s. Mitsui & Co. Ltd.'s tax assessment for the 2013-14 financial year. The core issues revolve around the proportion of gross trading profit attributable to Mitsui's Permanent Establishment in India and the allowable deduction for commission expenses. The Assessing Officer had initially determined a higher percentage of profit and a lower commission deduction compared to the findings of the CIT(A).

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “D” NEW DELHI
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
AND
SHRI AMIT SHUKLA, JUDICIAL MEMBER
(Through Video Conferencing)

ITA No.5901/DEL/2016
Assessment Year: 2013-14

Asstt. Commissioner of
Income Tax (International
Taxation),
Circle-2(2)(1),
New Delhi.
(Appellant) 

vs. 

M/s. Mitsui & Co. Ltd.,
Plot No.-D1, 4th Floor, Salcon
Ras Vilas,
District Centre, Saket,
New Delhi.
TAN/PAN: AAACM5469Q
(Respondent)

CO No.28/DEL/2017
Assessment Year: 2013-14

M/s. Mitsui & Co. Ltd.,
Plot No.-D1, 4th Floor, Salcon
Ras Vilas,
District Centre, Saket,
New Delhi.
(Appellant) 

vs. 

Asstt. Commissioner of
Income Tax (International
Taxation),
Circle-2(2)(1),
New Delhi.
TAN/PAN: AAACM5469Q
(Respondent)

Appellant by: Shri Ved Jain, Sr. Adv. & shri Akshit
Goel, CA
Respondent by: Shri Seetpal Gulati, CIT.
Date of hearing: 15 10 2020
Date of pronouncement: 27 11 2020

O R D E R

PER AMIT SHUKLA, JUDICIAL MEMBER:
 
The aforesaid appeal has been filed by the Revenue and Cross Objection by the assessee against the impugned order dated 22.09.2016 passed by Ld. CIT(A)-XLIII, New Delhi for  the quantum of assessment passed u/s.143(3)/144C for the Assessment Year 2013-14. In the Revenue’s appeal, following grounds have been raised:-
 
1. On the facts and in the circumstances of the case, whether the Ld. CIT(A) erred holding that only 20% of the gross trading profit out of the operations in India, was attributable to the permanent Establishment of Mitsui & Co. Ltd. (“Assessee”) in India as against 50% as was determined by the Assessing Officer.
 
2. On the facts and in the circumstances of the case, whether the Ld. CIT(A) erred in allowing deduction of commission to the Permanent Establishment of the assessee at Rs. 1,32,13,29,525/- as against Rs. 35.30.09,057/- which was determined by the Assessing Officer.” 

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