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2016 (2) TMI 229 - AT - Income TaxTaxability of contract receipt in India - Held that:- There is merit in the submissions of the Ld A.R that the profit attributable to Indian operations should be determined by undertaking FAR analysis. Since the assessee had taken the view that the profit arising from supply of equipments was not taxable in India, it appears that the assessee did not consider it necessary to put up its arguments on the profitability issue. Further, it is stated that the assessee is possessing evidences in support of the expenses claimed by it. Hence, we are of the view that the assessee should be provided with one more opportunity, in the interest of natural justice, to make its submissions before the AO and also to produce evidences. Hence, we are of the view that the issue relating to the attribution and determination of income should be examined afresh at the end of the assessing officer. Accordingly, we set aside the issue relating to determination of income to the file of the AO with the direction to examine the same afresh by duly considering the information and explanations that may be furnished by the assessee. The assessee is also directed to furnish evidences supporting various expenses claimed by it and also make its submissions with regard to the income attributable to the Indian operations.- Decided partly in favour of assessee for statistical purposes.
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