TMI Blog2011 (11) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... can be found with the decision of ITAT in holding that the income arising from offshore supplies are not taxable in India. Once it is held that the amounts in question are not taxable in India, then the question of applying the DTAA between India and Australia does not arise at all. See Ishikawajima-Harima Heavy Industries Ltd. v. DIT (2007 (1) TMI 91 (SC)) - Decided against Revenue. TDS - In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shore supply in respect of Metro Rail Contract is not taxable in India, as the sale of equipment is concluded outside India ignoring the fact:- (a) that the contract concluded between M/s. Olex Pty Land and Metro Rail was a single contract for onshore as well as offshore supply of equipment involving designs, supply and supervision of installation and testing commission of integrated optical f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61?" 2. The assessee is a resident of Australia. The Assessment Year involved herein is A.Y. 1995-96. 3. The first question relates to the taxability of the amounts received by the assessee on account of offshore supplies. The assessee had entered into a contract with the Metro Railways for supply of equipments and services offshore as well as onshore. Since there was one single contract f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, then no fault can be found with the decision of ITAT in holding that the income arising from offshore supplies are not taxable in India. Once it is held that the amounts in question are not taxable in India, then the question of applying the Double Taxation Avoidance Agreement between India and Australia does not arise at all. Accordingly, the first question raised by the revenue cannot be ente ..... X X X X Extracts X X X X X X X X Extracts X X X X
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