TMI Blog2016 (9) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... was carried out by the applicant for 'G.R. Engineering Private Limited at BPCL, Kochi, Kerala commencing on 16.2.2015 and expected to end on 31.01.2016 constitutes a Permanent Establishment of the applicant in India in terms of Article 5 paragraph 3 of India-Singapore Double Tax Avoidance Agreement (DTAA) and hence, the business profits attributable to the said PE are the applicant's income arising in India under Section 9(1)(i) of the Act and assessable as such in India in terms of Article 7 of the said DTAA for Assessment Years 2015-16 and 2016-17, which are the years where the applicant has not exceeded 183 days. The Department has also taken a stand that for the purpose of computing the business profits, Section 44BB of IT Act is appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 ? 2. The applicant contends that it is engaged in the business of (i) renting/leasing of heavy lifting cranes for use and (ii) providing erection and installation of heavy equipment like furnaces, boilers, coke drums, fractionators, chimneys, turbines, generators etc. in many countries in Asia. 3. The applicant further submits that it had rented out a crane 'Demag CC 8800-1 (SSL)' having a capacity to lift 1600 metric tons for a period of 7 months commencing from 17.02.2015, which is expected to end on 15.09.2015 to M/s. GR Engineering Private Limited. This renting is claimed to have been done by the applicant as per the terms contained in the Service Work Order No. P11/744-3400001617 dated 04.03.2014 and Amendment Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited already stands allowed holding that the consideration received is not taxable as the total period of the operation of the applicant is less than 183 days. 5. In the present application also, the claim of the applicant more particularly is that out of three years, in only one year, there is more than 183 days of working. On this basis, the applicant wanted to know his tax liability for the years where it has not exceeded 183 days. The Department has filed its reply on dated 11.1.2016. In short, the Department contends that the applicant has a Permanent Establishment ('PE') in India. It has taken a stand in the reply that the installation of project was carried out by the applicant for 'G.R. Engineering Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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