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2020 (11) TMI 1101 - AT - Income TaxIncome deemed to accrue or arise in India - Fixed place PE in India - profits attributable to the PE in India - Royalty receipt - HELD THAT:- Tribunal in assessee’s own case for Assessment Years 2006-07 and 2008-09 [2013 (11) TMI 564 - ITAT DELHI] has reached the conclusion that there was a fixed place PE of the assessee in India and that profit attribution had to be made in the hands of the assessee due to such fixed place PE. Although, the assessee has approached the Hon’ble High Court against the said order of the Tribunal holding that the assessee had fixed place PE in India, the appeals are yet to be disposed of by the Hon’ble High Court. Thus, as of date, the order of the Co-ordinate Bench of the Tribunal for Assessment Years 2006-07 and 2008-09 have a binding precedential value for us because bound by judicial discipline, we are to follow the decisions of the Co-ordinate Bench, especially if the same have been rendered in assessee’s own case. Thus we uphold the action of the Ld. CIT(A) in holding that the assessees has a fixed place PE in India. Methodology of profit attribution - As in assessee’s own case for Assessment Years 2006-07 and 2008-09 has laid down the methodology and respectfully following the same, the TPO is directed to adopt the same methodology as enumerated by the Co-ordinate Bench. Thus, the issue to attribution of profits is restored to the file of TPO for computing the attribution of profits with respect to the fixed place PE after giving due opportunities to the assessee to submit its computation and calculations. Assessee did not have a dependent Agent PE or a service PE in India and reduction in profit attribution done by the AO - CIT (A) has returned a finding based on the order of the ITAT and has also noted that even in assessment year 2006-07 [2018 (2) TMI 1742 - ITAT NEW DELHI] the Ld. CIT (A) had held that there was no service PE in India and that the AO had not challenged this before the ITAT. Payment link charges/IPLC charges being taxable under royalty has been decided in assessee’s favour by the Tribunal in assessment year 2006-07 [2018 (2) TMI 1742 - ITAT NEW DELHI] - It is also seen that the Ld. CIT (A) has taken due cognizance of this finding of the Tribunal in the year under consideration and has allowed relief to the assessee.2 Therefore, in absence of any contrary facts having been pointed out by the department, in view of the order of the coordinate bench in assessee’s own case as aforementioned, we dismiss the related grounds raised by the department in this regard.
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