TMI Blog2016 (8) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... come in India. We find that the above observation or direction is only means that the A.O. may take suitable action for bringing the amount to tax in accordance with the provisions of the Act. Whether it is only an observation or a direction, in our opinion, to take a suitable action, A.O. has to follow the relevant provision of law. It is a settled position that before bringing to tax any income of a non-resident, the A.O. has to examine as to whether such income is taxable in India. The conditions precedent for bringing to tax such amount have to be satisfied before the A.O. can take recourse to bringing the same to tax in India in the hands of the assessee. Therefore, in our opinion, there is no mistake committed by the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to deduct tax at source for making payment to its constituent companies. The Ld. Counsel for the assessee submitted that after holding so, at para- 12 of its order, the Tribunal has proceeded to direct the A.O. to verify whether one of the constituents i.e., Chinese concern has offered the income for tax in India and further that if the Chinese concern has not filed income tax return and offered the amount as part of their income in computing the taxable income, the same shall be assessed as income of the assessee as the persons responsible for making the payment, non-resident and if the Chinese constituent has not offered this amount as part of their taxable income in India, the A.O. may take suitable action for bringing the amount to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the prayer of the assessee is only to review the order of the ITAT which is not permissible under section 254(2) of the I.T. Act, 1961. He, therefore, prayed that the M.As. of the assessee be dismissed. 4. Having regard to the rival contentions and the material on record, we find that this Tribunal has given a finding that the assessee, being an AOP/JV, is not required to deduct tax at source from the payments to the constituents towards their share of work carried out by them. Taking the above into consideration, the Tribunal thought it fit to direct the A.O. to verify whether Chinese concern has offered its income to tax in India and has also directed the A.O. to bring the same to tax in India if it is found that the nonresident has n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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