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2019 (11) TMI 1552 - ITAT MUMBAIIncome accrued in India - PE In India - Taxability of Consulting & Engineering Services - taxability of cost recharge which were stated to be ancillary and incidental to consulting & engineering services - HELD THAT:- Tribunal in assessee’s own case for AY 2012-13 [2019 (4) TMI 605 - ITAT MUMBAI] held that the amount received by the assessee on account of consulting & engineering services were to be treated as business profit and in the absence of assessee’s PE in India, it could not be brought to tax. Consequently, the cost recharge which was considered to be ancillary and incidental to consulting & engineering services, was also held to be not taxable in the absence of assessee’s PE in India. However, in the year before us, the assessee has already offered the consulting & engineering fees to tax which has been accepted by the revenue. Since we have admitted additional ground of appeal on this point, the issue of taxability of consulting & engineering services would go back to Ld. AO for adjudication. Therefore, logically, the issue of taxability of cost recharge, which has been treated as ancillary and incidental to consulting & engineering services, would also go back to Ld. AO for re-adjudication in the light of stand taken qua consulting & engineering services. Therefore, we deem it fit to restore both the grounds to the file of Ld. AO for re-adjudication de-novo - Assessee appeal stands allowed for statistical purposes
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