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2024 (2) TMI 743 - AT - Income TaxTaxability of software sale by the US entity to Indian entities - Indian subsidiary is held as DAPE [Dependent Agent Permanent Establishment] of the assessee in India - when DAPE is remunerated at arm’s length - HELD THAT:- Tribunal in assessee’s own case in preceding assessment years [2022 (5) TMI 1513 - ITAT MUMBAI] has decided the similar issue in favour of the assessee and held that once the DAPE is remunerated at arm’s length no further addition can be made in the hands of the assessee. As transactions in question were at arm’s length price, no taxability survives in the hands of the assessee. Once basic taxability under the DAPE itself comes to an end, all other issues raised in the appeal are rendered academic and infructuous - Decided in favour of assessee. Short grant of credit of TDS - This issue is restored to the file of the AO with the direction to grant TDS credit, in accordance with the law, after conducting the necessary verification. As a result, ground raised in assessee’s appeal is allowed for statistical purposes.
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