Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 479 - AT - Income TaxIncome from sale of Completely Knocked Down (CKD) Units whether the provisions of Sec. 9(1)(i) are applicable or not Held that:- The Assessee merely sells the raw materials/CKD units to DCIL who in turn carries out further activity of assembling the same and selling the finished cars. There are no further activities carried out by Appellant in India in this connection, as this transaction ends with the Appellant selling the raw materials/CKD, no income from such sale accrues or arises to the Assessee in India - Mere sale of raw materials/ components will not result in business connection and even if it does as per the terms and conditions of the contract between the Assessee and DCIL no income accrues to the Assessee on the basis of any activities carried out, on behalf of the Assessee in India against revenue. Permanent establishment - Article 5(2) of the DTAA between India and Germany with regard to sale of CKD Units Held that:- Merely acting for a non- resident principal would not by itself render an agent to be considered as PE for the purpose of allocating profits taxable in the hands of the principal. There should be some definite activity of the PE to which profits can he attributed, merely calling a person as agent acting on behalf of foreign non-resident would not by itself render him to be considered as an agency PE and pro tanto part of the profits of the non-resident is liable to be taxed in India against revenue Deletion of income in respect of rights of SAP system assessee submitted that there is no basis for the estimate made by the AO regarding royalties/ FTS income in respect of rights for software to be an ad-hoc amount of EURO 1,00,000 - Held that:- As the confirmation filed by the assessee that no payment by DCIPL in connection with right to use any software licensed by the assessee during the financial year was made before the CIT(A) was not confronted to the AO he should be afforded opportunity for examining the claim made by DCIPL before the CIT(A ) - set aside the order of the CIT(A) and remand the issue to the AO for fresh consideration in the light of the additional evidence filed in favour of revenue for statistical purpose. Applicability of levy of Interest u/s 234B - duty is cast on the payer to pay tax at source Held that:- As decided in DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION) Versus NGC NETWORK ASIA LLC 2009 (1) TMI 174 (HC) when a duty is cast on the payer to pay the tax at source, on failure, no interest can be imposed on the payee-assessee - once the Income is subjected to TDS provision, then that Is outside the provisions of the advance tax as per the mandate of Section 209 against revenue. Penalty u/s 271(1)(c) Held that:- As addition made by the AO treating income from sale of CBU Cars as income chargeable to tax in India and that the assessee had a PE in India was deleted by Tribunal, the very basis of imposing penalty on the assessee no longer survives against revenue.
|