Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 213 - AT - Income TaxIncome deemed to accrue or arse in India - treating the receipts from TCL as royalty and taxed under India-UK Tax Treaty - whether Liaison Office (LO) constitutes a permanent establishment in India?- Whether Land Earth Station ('LES') constitutes a permanent establishment of the Appellant in India? - AR submitted that the lower forums and the DRP has treated the receipts from TCL as royalty and made taxable at 10% under India-UK Tax Treaty. Therefore the action of the A.O and lower forums are not in accordance with law and the Hon'ble Tribunal in assessee's own case in earlier years has granted relief to the assessee - HELD THAT:- We find the submissions of the Ld. AR are realistic and the Ld. AR also referred to the DTTA between India-UK Tax Treaty and decision of the Hon'ble Tribunal for the A.Y 2015-16, wherein this disputed issues have been dealt. The Hon'ble Tribunal in assessee's own case [2020 (10) TMI 1188 - ITAT MUMBAI] conclude, that the amounts received by the assessee from TCL for providing Satellite Telecommunication Services is not to be held as royalty in its hands. PE in India - whether Liaison Office (LO) of the assessee constituted its PE in India and that the Land Earth Stations (LES) constituted a PE of the assessee in India - HELD THAT:- As decided in own case [2020 (10) TMI 1188 - ITAT MUMBAI] A.O/DRP had in the aforesaid preceding years concluded that the LO and LES were to be treated as the PE on the assessee in India, remains the same, as are involved in the appeal of the assessee for the year under consideration, we therefore respectfully follow the aforesaid order of the Tribunal. Accordingly, in the backdrop of our aforesaid observations, we herein conclude that the assessee did not have any PE in India during the year under consideration. Considering the profitability on ad hoc basis of 30% on gross receipts from TCL by applying the Rule 10 of Income Tax Rules, 1962 - HELD THAT:- Theaforesaid issue pertains to the computing the income of the assessee attributable to its PE in India. Since we have upheld the primary stand of the assessee that there does not exist any PE of the assessee in India, thus, the dispute in ground of appeal No. 8 having been rendered as merely academic as dismissed as infructuous. Levying surcharge, secondary education cess and higher secondary education cess over and above the tax computed - HELD TAT:- Tax computed at the rate prescribed under the India-U.K. tax treaty is not be subjected to any additional taxes in the form of surcharge or education cess. We thus set aside the view taken by the lower authorities and direct the A.O to recompute the tax liability of the assessee in terms of our aforesaid observations. Denial of TDS credit - HELD THAT:- Since the matter requires examination and verification of the facts in respect of Tax credits. We restore this disputed issue to the file of A.O to grant credit after verification and allow the ground of appeal for the statistical purposes.
|