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2011 (1) TMI 565 - HC - Income TaxComputation of Profit - The respondent/assessee is a German company. - It set up a project office in India for providing engineering and technical services for various projects - The Tribunal has held that section 44BBB of the Act is a provision for computing the profits and gains of foreign companies engaged in the business of civil construction, erection and turnkey power projects and profits and gains of such foreign companies are to be computed in accordance with the said provision. The view taken by the Tribunal is perfectly justified on correct interpretation of the aforesaid provision - The computation of profits in respect of other assessees as provided in the aforesaid provisions namely sections 28 to 44AA of the Act would not be applicable in the case of those foreign companies who fulfills the conditions laid down under section 44BBB of the Act - In cases of such companies, this provision which is fictional in nature is made which specifies that a sum equal to 10 per cent of the amount paid or payable to the assessee or to any person on his behalf shall be deemed to be the profits and gains of such persons chargeable to tax - Decided in favour of assessee.
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