9911796707
TMI Blog2022 (2) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into on or after 1st April, 2003 are effectively connected to the PE of the assessee and 'not FTS' and liable to tax on net basis as per provisions of section 44DA of the Act." 3. Briefly stated facts are, the assessee is a non-resident company incorporated in Netherlands and a tax resident of that country. The assessee is engaged in the business of providing consultancy services related to various projects of civil and structural engineering, such as, road, highways, bridges, water supply, sewerage, solid waste management, environmental impact assessment, environmental engineering, urban development, rural and regional development, ports and waterways, agricultural and natural resources, irrigation and drainage, and human ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n gross basis, as according to him, they are effectively connected to the Permanent Establishment (PE) in India. Accordingly, he completed the assessment by determining the total income at Rs. 8,43,47,198/-. Against the assessment order so passed, the assessee preferred an appeal before learned Commissioner (Appeals). 5. After considering the submissions of the assessee in the context of facts and materials on record, learned Commissioner (Appeals) found that his predecessor has decided identical issue in favour of the assessee in assessment year 2011-12. Accordingly, following the said decision, he held that assessee's receipts from the contracts in India are not effectively connected with PE in India. Accordingly, he directed the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not disputed the existence of PE in India. The AO has accepted that FTS from those contracts which are signed before 01-04-2003 are effectively connected with PE in India and hence taxable u/s. 44D but he has held that FTS from contracts which are signed after 01-04-2003 are not effectively connected with PE in India and hence not taxable u/s. 44DA. The AO has reasoned that project wise detail of employees for contracts executed by branch office was not furnished. The action of the AO does not appear to be based on proper appreciation of facts. The AO has selectively chosen to hold that contracts executed by branch office in India and entered into after 01-04-2003 are not effectively connected with PE while other contracts executed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod were produced before the Assessing Officer by the assessee. Despite that the Assessing Officer has overlooked the said documents and has given an incorrect finding that the assessee has not submitted the documents. The activities under each of the contract were rendered in India for more than 6 months which was not disputed by the Revenue. The details of the personnel and their duration activity shows that the contracts are required to be rendered for substantially long period of time which supports the case of the assessee that the scope of work was required to be rendered in India and the time spent in India by the assessee/subcontractor proves that a Permanent Establishment (PE) was constituted in India. Therefore, the CIT(A) right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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