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TMI Blog2018 (7) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... echnology Division of STEAG GmbH, which provides professional and specialised energy services in Germany and elsewhere. It has a wholly owned subsidiary in India i.e. M/s STEAG Energy Services (India) Pvt. Ltd. (hereinafter "SESI") set up in 2001 to provide cost-effective consultancy services by integrating resources of its parent company and those of SESI units in India. It entered into an operation and maintenance (O&M) contract with HPL Cogeneration Limited (HPLCL) on 30.06.2006 for operation and maintenance in Engineering support for the 116 MW Combined Cycle Cogeneration Power Plant at Haldia, West Bengal. As per the contract, the SESI had to operate and maintain the plant on behalf of HPLCL. For that activity, SESI sub-con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,15,89,267/- offered by the assessee/ petitioner. 5. The Revenue urges that the Settlement Commission's order impugned in the present petition was unsustainable on two grounds; firstly, as the respondent had violated the provisions of Section 40a(iii) of the Act since it was not paid within the time the additions needed to be made; secondly, the question of royalty, which according to the Revenue was erroneously held against the Revenue and in favour of the assessee given the true meaning of the term under Explanation 2 to Section 9(1)(vi) of the Act. It was lastly contended that the Settlement Commission also fell into error in permitting the assessee to exclude adjustments in respect of Jharsuguda project, Orissa (for A.Y. 2010-11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asoning is contrary to the spirit of the provisions of the Income Tax Act. Having agreed to the adjustments, the mere fact that in the Jharsugoda project the assessee had reflected substantive profits which were offered by it to tax did not mean that the adjustments in that regard ought not to have been gone into. 9. This Court notices, at the outset, that out of the three errors sought to be highlighted two issues are covered by the previous decisions of the Court - against the Revenue. As far as the third issue i.e. the exclusion of adjustments in respect of Jharsugoda project goes, the matter is factored. The case law as to the scope of the Court's remit under Article 226 of the Constitution of India while dealing with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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