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2023 (10) TMI 404 - HC - Income TaxIncome taxable in India - income from the Offshore supply - assessee is a South Korean company engaged in the business of manufacturing and installation of electric cables set up project offices in India for installation of electric cables in India in connection with the Indian projects that were awarded to it - ITAT has come to a factual finding that though assessee had entered into a contract with MRVC for supply of equipments and services, Off-shore as well as On-shore, the terms of the contract distinctly set out the quantum of Offshore supplies to be made by assessee to MRVC and also the quantum of payment to be received by assessee from MRVC outside - HELD THAT:- ITAT after considering the contract between assessee and MRVC, came to the conclusion that the composite contract specifically records the quantum of goods to be supplied outside India, the property in the plant and machinery got transferred to MRVC once they were loaded on the mode of transport from the country of origin to India and even the payment is made outside India. We cannot find fault with these factual findings and the decision of ITAT in holding that the income arising from Off-shore supplies are not taxable in India. Therefore, question “A” and “B” raised by the Revenue cannot be entertained. As there is no liability to pay tax, the question of demanding 10% on presumptive basis will not arise. Question “D” is accordingly rejected. We find support for this view of ours in Xelo Pty. Ltd. [2011 (11) TMI 439 - BOMBAY HIGH COURT] Interest u/s 234B is not leviable following the decision of DIT(IT) vs. NGC Network Asia LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT]
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