2023 (1) TMI 212 - AT - Income Tax
Income deemed to accrue or arise in India - business PE in India - receipts of the assessee from Indian customers constitute royalty u/s 9(1)(iv) - assessee derived revenues from its airline customers in India - Whether non-resident entities have fixed place business PE in India? - whether there is any PE of the assessee in India or not? - HELD THAT:- For the A.Y. 2014-15, the ld. DRP held that the assessee had PE in India the services provided by the assessee are software services covered under Explanation 2 to Section 9(1)(vi) of the Act.
Having heard the arguments of both the parties who reiterated the similar arguments taken up before the authorities below, we decline to interfere with the reasoned order of the ld. CIT(A) resulting in dismissal of the appeal of the Revenue on the issue of PE in India.
Royalty Receipt - AO taxed the entire receipts as income of the assessee to be taxed @ 40%, the ld. CIT(A) held that the gross income has to be taxed @ 10% in accordance with the provisions of Section 9(1)(vi) and Section 115A - HELD THAT:- We have gone through the entire arguments given by the assessee and the judgments quoted by the assessee which have been duly incorporated in the order of the ld. CIT(A). We have also been made aware that the receipts of the assessee for the subsequent A.Ys. 2015-16, 2016,-17, 2017-18 have also been taxed @ 10% which has been the ratio followed by the ld. CIT(A) for the A.Y. 2013-14. In view of the settled position, we hereby affirm the decision of the ld. CIT(A).
Appeal of revenue dismissed.