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2017 (9) TMI 748 - CALCUTTA HIGH COURTTaxability in India - Settlement commission order eligibility - Settlement Commission held that the Non- Resident Entities not having permanent establishment in India are not liable to pay taxation in respect of offshore transactions - DTAA - Held that:- The Settlement Commission considers the contracts. It looks into the aspect of the taxability of the portion said to be performed within India. It takes a particular view upon understanding the contract between the parties and gives reasons for such particular view as returned. As noted above, it is of view that, so far as the plant and machineries are concerned, the sale took place offshore and, therefore, is not taxable in India. So far as the supervisory contracts are concerned, the Settlement Commission is of the view that, the same is taxable and has determined the tax liability. The private respondents have accepted the same. Provisions in the contract allowing deferred payment to be made in India, by itself may not allow an inference that, the title to the goods stand transferred only upon such payment being made. An order passed by the Settlement Commission is justiciable. Jyotendrasinhji (1993 (4) TMI 1 - SUPREME Court ) is of the view that, an order of the Settlement Commission which is contrary to any of the provisions of the Income Tax Act, 1961 and prejudicial to the interest of the assessee is amenable to interference under Article 226 of the Constitution of India. An order of the Settlement Commission can also be interfered with if it is substantiated, the same is vitiated by fraud or bias or malice. None of the grounds noted for sustaining a challenge to an order passed by the Settlement Commission stands substantiated in the facts of the present case. The Writ Court is not called upon to reapprise the evidence produced before the Settlement commission, as an Appellate Court and arrived at a finding contrary thereto.
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