The assessee filed its return of income for AY. 2018-19 disclosing income received from Heidrick and Struggles India P. Ltd. under the head ‘Income from other sources’. The return was processed u/s. 139(1) of the Act by CPC. The assessee sought its rectification in view of provisions of Article 14 of Indo-USA DTAA. However, CPC rejected the same and CIT(A) confirmed view taken by CPC. However, the Tribunal in view of Circular 14 dated 11.04.1955 and also rectification having accepted by CPC in two other group companies viz. Heidrick and Struggles Pvt. Ltd, Singapore and Heidrick and Struggles P. Ltd. UK, allowed the appeal filed by the assessee. The Revenue filed belated appeal before the High Court. After condoning the delay, the High Court dismissed appeal holding that circular 14 was applicable in the case of the assessee and merely because respondent assessee placed the income under wrong head, cannot possibly make it amenable to imposition of tax. (AY. 2018-19)
CIT (IT) v. Heidrick and Struggles Inc. (2024) 461ITR 33 (Delhi)(HC) Editorial : Followed CBDT Circular 14 of 1995 dated 11.04.1995. Referred CIT v. Bharat General Reinsurance Co. Ltd. (1971)81 ITR 303 (Delhi)(HC)
S. 154 : Rectification of mistake-Mistake apparent from the record-Inadvertently disclosed income in its return-Return was accepted u/s. 139(1)-Rectification is rejected-Tribunal allowing the claim-Dismissing the appeal the Court held that merely because respondent included the income in the return as taxable cannot make it amenable to imposition of tax-DTAA-India-USA [. S. 139(1),143(1), 260A, Art. 14]