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2017 (9) TMI 1822 - AT - Income TaxIncreasing the net profit rate to 27.5% on the gross revenue from supervisory services against the net profit rate of 15.10% applied by the assessee - HELD THAT:- This issue is covered by the order of the ITAT in the assessee’s own case for the A.Y.2010-11 and A.Y.2011-12 [2015 (6) TMI 609 - ITAT KOLKATA] . The Tribunal upheld the net profit rate of 27.5% as determined by the Hon’ble ITSC. Respectfully following the decision of the co-ordinate Bench of the ITAT, we dismiss the Ground No.2 of the assessee. Income accrued in India - Sale of designs and drawings - whether is not in the nature of sale of product and the income earned from such sale is taxable under Article 12 of India-Germany DTAA and the income earned by the appellant from sale of designs and drawings is taxable as Fees for Technical Services as per Article 12 of the DTAA - HELD THAT:- In assessee company`s own case in assessment years 2007-08 to 2011-12, whereby the issue was decided in favour of the assessee company as set out above, therefore we hold that the sale of designs and drawings is sale of a copyrighted article and therefore, income earned there from is in the nature of business income. Hence, this ground of the assessee is allowed. Assessment of income with regard to the sale of equipment - AO had rejected the contentions of the assessee and held that a profit percentage of 10%, would be a reasonable percentage - HELD THAT:- As decided in assessee' own case [2015 (6) TMI 609 - ITAT KOLKATA] after considering the provisions of Sales of Goods Act held that such acceptance tests are merely in the nature of warranty provisions. Even there is no PE for sale of equipment in view of the decision of Hon'ble Supreme Court in the case of Hyundai Heavy Industries, [2007 (5) TMI 196 - SUPREME COURT] and in addition to this, there is no concept called sale PE under DTAA. In light of the facts and legal position, we hold that the profit arising to the assessee from sale of equipment is not taxable in India. This issue of assessee’s appeal is allowed
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