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2014 (3) TMI 1110 - AT - Income TaxPE in India - assessee has a business connection in India u/s.9(1)(i) - income deemed to accrue or arise in India u/s.9(1)(i) - Held that:- Tribunal in assessee’s own case for A.Y. 2008-09 [2014 (4) TMI 529 - ITAT PUNE] held that the assessee did not have any PE in India, much less a PE to which subject royalties and fees for technical services could be attributed. In terms of Indian-German DTAA, India does not have right to tax these receipts as business profit under Article 7. In the light of above finding that no revenue earned by the assessee could be said to be attributable to PE, even if one was to come to the conclusion that a PE existed, no taxability could arise under Article 7. The assessee has offered the royalties and fees for technical services for taxability in India under Article 12A and to that extent, admitted tax liability exists. This approach of the Assessing Officer was rejected by the CIT(A) in A.Y. 2006-07 for the reasons discussed above. Accordingly, the issue in ground No.1 is allowed Taxability of payment received by the assessee from EIPL on account of project “MOVE” - Held that:- The Ld.CIT(A) has not gone into the details of the terms of the agreement. It is true that some mark up is there which has described as administrative surcharge to the extent of 3%. Prima-facie, it appears that the project “MOVE” undertaken by the assessee company is not as a business activity but to support the group companies worldwide to improve their efficiency. In our opinion, this issue needs fresh adjudication. We, therefore, consider it fit to restore the issue to the file of the Ld.CIT(A) for Denovo adjudication with direction that he should examine the contention of the assessee in the light of the agreement between the assessee as a pool leader and its other group companies as Pool members. Interest charged u/s.234B - Held that:- We with the consent of both the parties remit the issue of charging of interest u/s.234B to the file of the Ld.CIT(A) for fresh adjudication.
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