Section 263 of the Income-tax Act, 1961—Revision— No substantial question of law arises for consideration in appeal as the contention of the Revenue that there was material change in view of the reduction of tax rate applicable to assessee in Oman is inconsequential and misconceived.

Facts: This appeal by the Revenue under Section 260A in the case assessee relates to AY 2011-12. Tribunal has quashed the order passed by the Principal Commissioner under Section 263. Learned counsel for the Revenue accepts that similar order passed by the Principal Commissioner in the case of assessee for the assessment year 2010-11 under Section 263 of the Act was quashed by the Tribunal.

Held, that the contention of the Revenue that there was material change in view of the reduction of tax rate applicable to assessee in Oman is inconsequential and misconceived. The assessing officer in his original order for the present year had allowed and given rebate of tax paid in Oman at the rate of 12% and not at the rate of 30%. Accordingly, the assessee was given tax credit of Rs. 17,37,09,837/- out of the total dividend paid in Oman of Rs. 144,75,81,978/-. Thus, the assessing officer had taken notice of the reduction of rate of tax and tax credit was only given for the tax paid in Oman. Change in tax rates/slab, therefore, would not make any difference; nor would it negate the ratio of the decision dated 02.08.2017 passed by the Division Bench of this Court in ITA No.597/2017 pertaining to the assessment year 2010-11. The ratio of the order would accordingly apply. For the reasons stated in the order dated 02.08.2017 passed in ITA No. 597/2017 for the assessment year 2010-11 we hold that no substantial question of law arises for consideration in the present appeal. - PR. CIT V/s INDIAN FARMERS FERTILIZERS COOPERATIVE LTD. - [2018] 6 ITCD Online 150 (DEL)