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2018 (6) TMI 207 - ITAT DELHIExistence of a business connection - P.E. in India - fastening the tax liability on the income earned on supply of telecommunication equipment to the Indian Customers - whether the profit on such supply of telecom equipment in India was attributed to assessee? - Article-5 of the India-Singapore DTAA - Held that:- The income of the assessee from supply of equipment in India was not chargeable to tax in India and therefore any such income or any part thereof is not attributable to the activities of assessee in India following the decision in assessee’s own case reported in (2016 (5) TMI 373 - DELHI HIGH COURT) answer the grounds in the appeals preferred by the assessee accordingly in favour of the assessee. Royalty - supply of embedded Software - Held that:- The payment for the embedded software is not separately taxable in the hands of assessee in India either as royalty or as business income. Initiation of penalty - no-grant of credit of TDS - Held that:- Initiation of penalty proceedings challenged by the assessee is premature and it cannot be adjudicated - we direct the Assessing Officer to given eligible credit of TDS, as per rules, after verification. Levy of interest under section 234B - Held that:- Issue being consequential in nature, the Assessing Officer is directed to act accordingly as per Rules. Allowability of deduction of Research and Development expenses while computing the taxable income of the asessee’s alleged PE in India - Held that:- The view is covered by the assessee’s own case reported in (2016 (5) TMI 373 - DELHI HIGH COURT) - thus we dismiss these grounds of appeal of the Revenue.
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