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TMI Blog2022 (5) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... incorporated under the laws of Netherlands and engaged in the business of providing consulting services for transportation, water supply, sewerage, solid waste management etc. The assesseecompany had opened a branch office in India. Assessee filed its return of income for A.Y. 2013-14 on 30.11.2013 declaring total income of Rs.39,15,950/-. The case was selected for scrutiny and notices u/s 143(2) & 142(1) of the Act were issued to the assessee. During the course of assessment proceedings, AO noticed that assessee had offered income from National Highway Authority of India on gross basis @ 20% u/s 44D r.w.s 115A of the Act and had also offered income from Indian Branch Office, income from Jammu Kashmir Project and income from Kolkata (KEIP) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be taxed on gross basis @ 10% u/s 115A of the IT Act, 1961. 2. The appellant craves to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal" 6. Before us, at the outset, Learned AR submitted that identical issue arose before the Co-ordinate Bench of Tribunal in Revenue's appeal for A.Y 2012-13 (ITA No.2834/Del/2017). He further submitted that the Tribunal vide order dated 08.02.2022 has dismissed the appeal of the assessee. He pointed to the relevant order placed in the paper book. He therefore submitted that since the facts are identical in the year under consideration to that of A.Y. 2012-13, the appeal of Revenue be dismissed. 7. Learned DR on the other hand did not controvert the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has executed various projects in India either directly from head office or through a branch office in India which has been opened with permission from RBI. The assessee has returned income from these contracts as FTS which are taxable either on gross basis u/s 44D or on net basis u/s 44DA depending upon date of entering into contract. Both these sections viz. 44D and 44DA applies only if FTS is effectively connected with PE in India. The AO 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 effective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion that the contract is effectively connected with branch office in India. In view of discussion supra, I hold that contracts under dispute in present appeal are effectively connected with PE in India. The AO is directed to tax income these contracts on net basis as per provisions of section 44DA. The ground of appeal is accordingly allowed." It is pertinent to note that all the documents especially contract agreements of the relevant period 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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