9911796707
TMI Blog2018 (9) TMI 2119X X X X Extracts X X X X X X X X Extracts X X X X ..... -13 & 2014-15. 2. The various grounds of appeal raised by the assessee are as under: "1. The learned DCIT/DRP erred in holding that the amount of Rs.211,03,97,303 received by the appellant company from the Offshore Supply Contracts was taxable in India. 2. The learned DCIT/DRP erred in holding that the amounts received by the appellant company from the Offshore Supply Contracts are covered by the provisions of section 44BBB and consequently liable to tax in India. 3. The learned DCIT/DRP failed to appreciate that the receipts from the Offshore Supply Contracts are not taxable in India. 4. The learned DCIT/ DRP erred in merely relying on DRP's order of the earlier year in applying the ratio of the Hon'ble Madras High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 28.09.2012 declaring an income of Rs.29,58,59,408/-. The assessment was framed vide order dated 10.10.2017 passed under section 143(3) read with section 147 r.w.s 144C(13) of the Act. Pertinent to state that the case of the assessee was reopened on the ground that income of the assessee has escaped assessment. The only issue challenged on merit is against the taxing of Rs.66,14,38,884/- received by the assessee from offshore supply contracts for supplying offshore equipments and accordingly the AO held that Rs.66,14,38,884/- from offshore supply has to be considered for computing income under section 44BBB of the Act which is upheld by the DRP. 5. At the outset, the Ld. Counsel of the assessee submitted before the Bench that issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Tribunal for the AY.2009- 10(supra)and it reads as under: "5. Learned Authorised Representative submitted before us that the 2007-081 2008-09 and 2011- 12 in ITA no.8074/Mum./20101 ITA no.6573/Mum./2011 and no.1033/Mum./2015, respectively, vide order dated 10th January 2017,by giving a categorical finding that the amount received under the off-shore contract are not taxable in India under section 44BBB.Therefore, he submitted, the amounts, received under the off-shore supply contracts cannot be taxed. 6. Learned Departmental Representative fairly agreed that the issue squarely covered by the decision of the Tribunal under reference. 7. We have considered the submissions of the parties and perused the material availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 Therefore after analyzing the various case laws, statutory provision, DTA/ provisions and contractual terms and respectfully following judgment of Hon'ble Supreme Court in Ishikawajima Harirna Heavy Industries Limited V/s DICT (288 ITR 408),we are inclined to hold that Offshore Supply contracts were 'carried and concluded- "outside India and hence no income therefrom deemed to accrue or arise in India as per section 9(1) and DTAA provisions and accordingly, not chargeable to tax. The receipts thereof do not form part of receipts for the purpose of computational provisions of section 44BBB. Explanation-4 could not overcome the limitation imposed by Explanation-l(a) to section 9(i)(i) and hence, the impugned income do not form part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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