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2022 (2) TMI 1058 - AT - Income TaxIncome accrued in India - Business Connection and Permanent Establishment = presence of BC/ PE of the assessee in India - HELD THAT:- The Hon’ble Delhi ITAT vide its order in assessee’s own case [2021 (10) TMI 1023 - ITAT DELHI] held that the assessee has a BC/ PE in India. In arriving at this conclusion, the coordinate bench followed the decisions of Hon’ble Delhi High Court and Hon’ble Delhi ITAT in case of assessee’s predecessor entities i.e. TGDSBV and Galileo International Inc. (“GII”). - Decided against assessee. Attribution of 75% of the India related gross profit instead of 15% of revenue to the alleged PE of the assessee in India - HELD THAT:- As decided in assessee’s own case [2021 (10) TMI 1023 - ITAT DELHI] the correct attribution to PE of the assessee in India is 15% of the gross booking fees. Also see [2021 (10) TMI 1004 - ITAT DELHI] Allowability of 100% of distribution expenses - HELD THAT:- This ground is covered in favour of the assessee in the case of assessee’s predecessor entity i.e. TGDSBV for AY 2007-08 to 2012-13 and AY 2014-15, wherein the coordinate bench of ITAT [2021 (10) TMI 1004 - ITAT DELHI] Allowed 100% deduction of distribution fees in the hands of the assessee. Allowability of other expenses like apportionment of technology service fees, vendor cost, amortization expenses and finance cost - HELD THAT:- The coordinate bench of ITAT vide its order [2021 (10) TMI 1004 - ITAT DELHI] in the case of assessee’s predecessor entity, TGDSBV for AY 2007-08 to 2012-13 and AY 2014-15 has allowed 70% deduction of all other expenses in the hands of TGDSBV relying on non-discrimination clause. Allowability of head office expenses under section 44C - assessee submitted that as per section 44C of the Act, a non resident assessee shall be allowed claim of head office expenditure incurred, notwithstanding the provisions of section 28 to section 44C of the Act - Also submitted that the Ld. AO and the Hon’ble DRP have suo moto allowed the deduction of head office expenditure in AY 2016-17, however the amount of such expenditure is computed incorrectly - HELD THAT:- In view of the above submissions of the assessee, we remit this issue to the file of the Ld. AO for allowing the correct claim of the head office expenditure to the assessee in the light of the details/information/ documents already on record and which he may require the assessee to furnish before him.
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