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2017 (2) TMI 848 - AT - Income TaxAttribution of income - determination of the quantum of income chargeable to tax in India - at a mark-up of 15% on costs incurred by CIT-A as against AO's profit attribution to sales activity in India at 40% of the profit from sales made in India - nature of activities carried out by the PE in India - Held that:- Attribution of profits to PE in India is fact based, depending upon the role played by the PE in the overall generation of income. Such activities carried out by a PE in India resulting in generation of income, may vary from case to case. Attribution of income has to be in line with the extent of activities of PE in India. Taking all the relevant facts into consideration and on a holistic approach, we direct to apply 30% of the profits, namely, 3% (30% of 10%) on the amount of sales made by the assessee in India either directly or through its branch office amounting to ₹ 17,21,14,673/- (USD 36,15,095 x ₹ 47.61), as the amount of profit attributable to the PE in India. No further deduction on any account is to be allowed. This will result into determination of total income at ₹ 51,63,440/- as against ₹ 80.95 lac determined by the AO and ₹ 16.75 lac computed by the ld. CIT(A). We direct to take ₹ 51,63,440 as the total income of the assessee.
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