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2023 (9) TMI 587 - AT - Income TaxIncome taxable in India - royalty/fee for technical services (FTS) - India-Germany DTAA - income from supervision services for inspection/optimization/erection/commissioning repair in India to other parties - assessee has submitted before the DRP that there was no permanent establishment (PE) of the company in India - DRP was of the view that the assessee and its subsidiary Gebr Pfeiffer India P. Ltd. were operating in the same segment of industry and stated that it was possible for both the assessee and its associate enterprise to work with same clients - HELD THAT:- As perused the separate supervision contract executed by the assessee company with Emami Cement Ltd. on 09.06.2016 and also separate supervision contracts with Jaypee Cement Corporation on 03.05.2016 wherein the terms and conditions and scope of the work etc, were mentioned. The assessee has also furnished the detail of engineers visited India to carry out contractual objection with copies of the minutes of the meeting etc. We find that DRP/AO has not controverted the genuineness of the different contracts executed by the assessee company with the different clients to whom it had rendered services pertaining to core components for manufacturing of cement. It is also noticed that the DRP/AO has not brought on record any other material to demonstrate that assessee has not acted directly for providing services to the clients in India and it has also not been established that how the assessee used the premises and services of its associate enterprise (subsidiary company namely (GIPL) in India. Therefore, we consider that AO/DRP is not justified in holding that assessee has used the premises of its associate company in India for rendering services to its clients. Assessee appeal allowed.
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