9911796707
TMI Blog2023 (7) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... price of the item sold and detail of the buyer to whom shipment of goods were provided which demonstrate that assessee had received the amount on sale of equipment and nowhere it was mentioned that any amount was received from rendering of any services. In this regard, we find that A.O has not established that how the amount received by the assessee was related to rendering of any services by the assessee. A.O/DRP have not controverted the facts established from the invoices on sale of equipments as discussed supra in this order. A.O has also not brought on record any clinching evidences to substantiate that assessee has received the impugned amount for rendering of services. Decided in favour of assessee. - ITA No. 2286/Mum/2022 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant is providing technical assistance and support services by misinterpreting the standard terms and conditions of the invoices. 2.3 contending the Appellant is rendering services on arbitrary and frivolous basis and based on his conjectures and surmises and without providing any reference to supporting evidence which demonstrates that the Appellant has rendered any services to Indian customers. 3. On the facts and circumstances of the case and in law, the Ld. AO/Hon'ble DRP grossly erred in treating the receipts of INR 13,27,84,057 towards offshore sale of goods as fees for technical services ('FTS) under section 9(1)(vii) of the Act as well as under Article 12 of the India- Ireland Double Taxation Avoidance Agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orporated under the law of Ireland and is engaged in the business of manufacturing highly sophisticated complex, technology advanced and expensive equipment and are intended to be used in specific industrial application. During the course of draft assessment proceedings the A.O noticed that assessee claimed receipt of USD 20,65,071 as non-taxable stating that the same was earned from offshore sale of equipment/consumable/spare parts to Indian customers accrued outside India as per the provisions of Sec. 5 of the Act and accordingly such income is not taxable in India. The A.O asked the assessee to provide the details of the amount in INR and also explained by the said receipt should not be brought to tax under the head FTS within the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 12 of India-Ireland DTAA also Fees for Technical Services as per Sec. 9(1)(vii) of the Act. 3. The assessee raised objection against the draft assessment order before the ld. Dispute Resolution Panel (DRP). However, the ld. DRP has dismissed the objection filed by the assessee. Accordingly, the assessing officer has passed final assessment order u/s 143(3) r.w.s 144C(13) of the Act on 15.07.2022 and assessed the income as per the draft assessment order. 4. During the course of appellate proceedings before us, the ld. Counsel contended that assessee is a Ireland based company engaged in the business of manufacturing and sale of sophisticated equipment at offshore. He further submitted that assessee company has earned the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r providing any services. We have perused the copies of invoices raised by the assessee placed at page no. 22 to 103 of the paper book. It is noticed that in the invoices the description of sale of equipment number of quantity, price of the item sold and detail of the buyer to whom shipment of goods were provided which demonstrate that assessee had received the amount on sale of equipment and nowhere it was mentioned that any amount was received from rendering of any services. In this regard, we find that A.O has not established that how the amount received by the assessee was related to rendering of any services by the assessee. The A.O/DRP have not controverted the facts established from the invoices on sale of equipments as discussed sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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