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2016 (11) TMI 1496 - HC - Income TaxTaxability in India - Non applicability of Section 44BB on sale of Off-shore supply of equipments by ITAT - also holding that 20% of profits on sale of Off-shore supply of equipments should be treated to have accrued in India and profit in this respect should be determined on the basis of Global Profit Ratio - Held that:- The Tribunal has arrived at the above decision, which has been confirmed by Hon'ble Apex Court in the case of Ishikawajma-Harima Heavy Industries Ltd. vs. Director of Income Tax, Mumbai (2007 (1) TMI 91 - SUPREME COURT) and has come to the conclusion that the assessee was having a divisible contract and for the manufacturing part it was not liable to pay any taxes in India as there was no element of sale at all in India. On facts it has not been recorded anywhere on the record that the situs of sale of the manufactured items took place in India. The entire equipment required by the Gas and Oil Company was completely manufactured outside India and it is only the installation of the equipment and the commission of the equipment, which took place in India. Accordingly, the assessee became taxable for the commissioning but not for the purchase of the equipment, which was done outside India. - Decided in favour of assessee.
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