Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 302 - AT - Income TaxAccrual of income in India - AO held that a part of the direct sales made in India by SJMHK and the assessee was attributable to the Indian Branch of SJMHK and accordingly taxable in India. The AO made an adhoc estimate of 20% of the direct sales made in India by SJMHK and the assessee and the same was attributed to the PE/business connection and taxed accordingly. - Computation of returned income on receipts related to services provided to both SJMH and SJMI - Management fee for work done for the Hongkong company as well as for the US company inclusion Held that:- It is held that even if any amount is to be taxed in the hands of SJMI (the appellant) by virtue of having a Permanent Establishment in India or otherwise, the amount that can be taxed is Rs. Nil, as the Permanent Establishment has been compensated at arm’s length and has offered the said compensation for tax in India which satisfies any charge in view of inter alia the decision of the Supreme Court in the case of DIT Vs Morgan Stanley & Co. (2007 (7) TMI 201 - SUPREME Court) and the order of the TPO. Decided in favour of the assessee.
|