9911796707
TMI Blog2024 (2) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... 018 Revenue's appeal 2. Effective grounds raised by the Revenue are as under: 1. On the facts and circumstances of the case, the CIT(A) erred in deleting the order of the Assessing Officer that charged the income of the assessee to tax at normal rates applicable to non-residents. 2. On the facts and circumstances of the case, the CIT(A) erred in relying solely on the order passed by TDS officer u/s 195(2) in the case of Continental Foundation Joint Venture. Issue in the order u/s 195(2) was limited to TDS liability of the deductor. It cannot be the sole basis for determining the tax rate applicable to the assessee 3. On the facts and circumstances of the case, the CIT(A) erred and in holding that Technical know-how fee was tax able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts aggregating to Rs. 69,93,54,377/- during the year under consideration. Whereas, it has not offered them to tax in India. Since, the assessee had not filed any return of income, the Assessing Officer reopened assessment under section 147 of the Income-tax Act, 1961 (in short 'the Act'). As observed by the Assessing Officer, in spite of notices being issued to the assessee to participate in the assessment proceeding and to furnish necessary information, the assessee remained non-compliant. As a result, the Assessing Officer proceeded to complete the assessment under section 144 of the Act to the best of his judgment. While doing so, the Assessing Officer added back the receipts of Rs. 69,93,54,377/- to the assessee. Against the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 195 of the Act, wherein he has directed the JV to deduct tax at the rate of 10% on technical know-how fee and at the rate of 15% on financial commitment fee. The aforesaid rates were applied by the TDS Officer treating the technical know-how fee as FTS and the financial commitment fee as interest income. The rate of TDS was determined in terms with the rate of tax for FTS and interest income as per the treaty provisions. Whereas, the Assessing Officer has taxed the entire receipts by applying the normal rate of tax as per the provisions of domestic law. 7. There is no dispute that the assessee has willingly offered the entire receipts to tax in India. The dispute is only with regard to applicable rate of tax on such receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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