Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 1441 - AT - Income TaxIncome deemed to accrue or arise in India - PE in India - taxability of income earned by the assessee in respect of the contract entered into with ONGC - assessee is a tax resident of UAE and is eligible to opt for taxability of its income under the Indo-UAE Tax treaty (“the treaty”) as per the provisions of section 90 (2) - According to the revenue, the income from the said contract is liable to be taxed in India as the assessee is stated to have a PE in India - as per the assessee the income from the contract in question is not taxable under the act by virtue of double taxation avoidance agreement (DTAA) between India and UAE - HELD THAT:- As decided in own case [2016 (2) TMI 47 - DELHI HIGH COURT] agreed to the contention of the assessee that it does not have a PE in India. Further the Hon’ble High Court has held that since there is no PE in India the receipts from the contract with ONGC is also not taxable in India – the question of attribution does not arise. As AR submitted that there exist identical facts for the year under consideration. Respectfully following the decision of Hon’ble Jurisdictional High Court, we are of the considered view that the assessee does not have a PE in India and the revenue from the contract cannot be taxed accordingly the ground numbers raised by the assessee stand allowed. Levying the interest u/s 234B of the Act while computing the total demand - HELD THAT:- This issue has been dealt by Hon'ble High Court in the case of DIT VS. GE Packaged Power Inc[2015 (1) TMI 1168 - DELHI HIGH COURT] holds that the view taken by ITAT was correct; the primary liability of deducting tax (for the period concerned, since the law has undergone a change after the Finance Act, 2012) is that of the payer. The payer will be an assessee in default, on failure to discharge the obligation to deduct tax, under Section 201 of the Act. 8.1 Respectfully following the decision of this tribunal in GE packaged power Inc. (Supra), we are inclined to allow the ground of appeal raised by the assessee. Non grant of TDS credit - AO did not give credit to the TDS paid. - AR has submitted that the AO may be directed to grant appropriate credit of TDS as claimed by the assessee in its return - HELD THAT:- We accordingly direct the AO to grant credit of TDS in accordance with law. Accordingly this ground raised by the assessee stands statistically allowed.
|