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2023 (6) TMI 378 - AT - Income TaxIncome deemed to accrue or arise in India - business connection in India - Appellant’s Business Connection (BC) and Permanent Establishment (PE) in India - HELD THAT:- The issue relating to Business Connection and Permanent Establishment in India is decided against the assessee by the Tribunal [2021 (10) TMI 1004 - ITAT DELHI] wherein the Tribunal followed the decision of the Hon’ble Delhi High Court in assessee’s own case [2014 (8) TMI 902 - DELHI HIGH COURT] and the assessees predecessor’s case in deciding the issue of as to whether the assessee was BC/PE in India. Respectfully following the said decision, we hold that assessee has Business Connection and Permanent Establishment in India. The grounds raised by the assessee in respect of BC/PE are decided against the assessee. Excess attribution of Revenue to India operations in respect of PE in India - HELD THAT:- For the assessment years 2007-08 to 2014-15 [2021 (10) TMI 1004 - ITAT DELHI] held that the correct attribution rate to be taken at 15% of gross booking fees. Thus we direct the AO to adopt the attribution rate of Revenue for the Indian operations of its PE in India at 15% of gross booking fees for the year under consideration also. As assessee submits that during the assessment year under consideration i.e. AY 2015-16 also if the attribution rate to the alleged PE is considered at 15% of gross booking fees since India related expenses are more than the attributed gross booking fees to the PE in India it would extinguish the assessment as no further income would be taxable in India. In view of the above submissions of the Ld. Counsel for the assessee we direct the Assessing Officer to check the correctness of the figures before giving effect to this order. Disallowance of other expenses to 30% - HELD THAT:- We direct the AO to recompute the income/loss of the assessee by restricting the disallowance of other expenses to 30% for the year under consideration also. Grounds raised by the assessee on this issue are partly allowed.
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