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2013 (11) TMI 126 - AT - Income TaxConstitution of Permanent establishment ('PE') in India – Held that:- The issue regarding the period of continuation of the activities has been stated to be less than nine months by the assessee. On the basis of the data furnished, the period falls short only by about 20 days. The lower authorities have not examined the provision contained in article 5(2)(i) - This limited issue is restored to the file of the Assessing Officer to ascertain the period of the existence of the assessee in India and thereafter decide the existence of permanent establishment. Applicability of section 44BB – Held that:- As the assessee is engaged in the services of laying a pipeline in the offshore area for the extraction of oil and gas the services are 'in connection with the extraction/production of oil/gas' and therefore covered by section 44BB - In case it is held that a permanent establishment exists, its income may be taxed under section 44BB - Issue restored to the file of the Assessing Officer to ascertain the period of existence of the assessee in India. Calculating the total tax payable - the Assessing Officer calculated the tax payable after adding the income ignoring the fact that no refund was paid to the assessee. This matter can be rectified at the end of the Assessing Officer - The Assessing Officer would consider the issue of refund at his end de novo after giving a reasonable opportunity of being heard to the assesse – Decided in favour of assesse.
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