9911796707
TMI Blog2015 (2) TMI 1353X X X X Extracts X X X X X X X X Extracts X X X X ..... d to constitute business connection in India. Accordingly, Ground No. 1 as raised by the assessee stands allowed. - ITA No. 1987/Mum/2014 - - - Dated:- 20-2-2015 - SHRI N. K. BILLAIYA ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER For the Assessee : Shri Sunil Moti Lala Shri Dharan Gandhi For the Revenue : Ms. S. Padmaja ORDER PER AMIT SHUKLA, JM: The aforesaid appeal has been preferred by the Assessee, against final assessment order dated 28.01.2014, passed u/s 144C r.w.s. 143(3) by ADIT (IT)-2(2) Mumbai, in pursuance of direction given by DRP u/s 144C dated 16.12.2013, for the quantum of assessment for the A.Y. 2009-10. 2. In Ground no. 1 the assessee has challenged that the assessing officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of the assessee. 4. On the other hand, Ld. DR submitted that the Tribunal while rendering the decision for A.Y. 2006-07 and for A.Y. 2008-09 has not considered on earlier decision of ITAT Mumbai Bench in the case of ACIT Vs. DHL Powers DV reported in (2005) 142 taxman(1) (Mum)(MAG), and therefore the decision of the Tribunal in assessee s own case is variance with the earlier decision of the ITAT Mumbai Bench. 5. Brief facts of the case are that, assessee is foreign company incorporated under the laws of Hong Kong and is engaged in the business of provision of supply chain management including provision of freight and forwarding and logistic services. The assessee had entered into Regional Transportation Services Agreements wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to say that the part which is done in India is that of Indian company and the one carried outside is that of the assessee. Therefore, whatever activity USIPL carries out in India is on behalf of (he assessee as a part of the assessee's business relating to the shipment of goods from one country to another and constitute business connection even under an independent contract basis 8.12 The assessee's contention that arm's length price to USIPL extinguishes any further attribution to the assessee in India is also not acceptable as the Circular 23 of 1969 cited by the assessee does not lay down the correct principle and has been withdrawn by the Board. Though the circular was withdrawn after the financial year 2008-09 rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accruing or arising from any business connection in India. It provides that where an income accrues or arises whether directly or indirectly through or from any business connection in India etc., it shall be deemed to accrue or arise in India. Explanation 1(a) states that in the case of a business of which all operations are not carried out in India, the income of the business deemed under this clause to accrue or arise in India shall be only such part of the income as is reasonably attributable to the operations carried out in India. This Explanation makes it prominent that only that part of the income from business operations can be said to be accruing or arising in India, as is relatable to the carrying on of operations in India. In oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 21.05.2014 ITA No. 7319/Mum/2012. Thus, without going into other decision of the Tribunal as cited by Ld. DR, we respectfully following the judicial precedence of the earlier years, decide this issue in favour of the assessee by holding that the assessee s income from transportation agreement cannot be taxed in India under the deeming provision of section 9(1)(i) as USIPL cannot be said to constitute business connection in India. Accordingly, Ground No. 1 as raised by the assessee stands allowed. 7. Regarding issue raised in Ground No. 2 and the additional ground, it has been submitted by the learned counsl that the issue involved are independently covered by series of decisions which have been placed before us. However, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
