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2015 (5) TMI 829

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..... dings on the question of taxability of the transaction of supply and concluded that the supply contracts did not lead to any inferences that income had arisen or accrued in India. The facts found by this Court also pointed that there was PE. However, that decision has to be seen in the light of the facts available to Court at that time. The question as to what was the material collected during the survey and what are the inferences drawn and whether the question of PE or any other issue would arise, is something this Court ought not to surmise. Thus remit the matter to the CIT (Appeals) who shall give reasonable opportunity to the assessee, in the light of the materials collected during the survey conducted on 22.11.2007 for the assessment .....

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..... 1997-98, the Revenue unsuccessfully brought to tax the consideration received by the assessee, towards the supply of equipments. The matter ultimately culminated in a reported decision of this Court in Director of Income Tax v. Ericsson (2012) 343 ITR 470 (Del). 3. For the succeeding years, 1999-2000 to 2004-05, assessments were pending. Apparently for some years, re-assessment notices had been issued and matters proceeded. In these circumstances, a survey was conducted on 22.11.2007 in the premises of Ericsson India Limited (EIL), a subsidiary of LME. For the concerned year, the assessment was completed on 31.12.2007. For some years which this Court is concerned, the assessment had been completed earlier in the light of the previous as .....

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..... from the assessee. The views of the assessee and the Assessing Officer on these new evidences are I necessary to form an opinion or draw conclusions on these documents. Surmises and conjectures are drawn. The nature of evidence found, the nexus the particular document/evidence has with the impugned Assessment Years, the inference that the CIT(A) seeks to draw from these documents and the reply of the assessee to such proposed, inferences are not brought out or discussed in the order. Under these circumstances we are unable to concur with the view of the CIT(A) that the facts and circumstances of the case in these Assessment Years before us, differ from the facts and circumstances of the case in the earlier. Assessment Years based on which t .....

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..... he previous ruling of this Court for AY 1997-98. 7. This Court has considered the submissions of the parties. Para 3.2 and 3.3 of the order of CIT (Appeals) points to the inferences drawn by the authority. Given that the CIT (Appeals) is vested with adjudicatory powers including power to appreciate the facts subject to the condition that reasonable opportunity is to be afforded to the assessee, the ITAT was correct in holding that such fact determination to the detriment of the assessee was unwarranted in the circumstances of the case. However, the problem is that the ITAT did not stop and remit the matter to proceed on a fresh determination of the same material. Its discussion to be found in paras 24 and 27 of the impugned order, was .....

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