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TMI Blog2023 (10) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... out the quantum of Offshore supplies to be made by assessee to MRVC and also the quantum of payment to be received by assessee from MRVC outside - HELD THAT:- ITAT after considering the contract between assessee and MRVC, came to the conclusion that the composite contract specifically records the quantum of goods to be supplied outside India, the property in the plant and machinery got transferred to MRVC once they were loaded on the mode of transport from the country of origin to India and even the payment is made outside India. We cannot find fault with these factual findings and the decision of ITAT in holding that the income arising from Off-shore supplies are not taxable in India. Therefore, question A and B raised by the Revenue c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from abroad into India? C. Whether on the facts and the circumstances of the case and in law, the tribunal has erred in holding that the interest u/s 234B is not leviable following the decision of the jurisdictional High Court in the case of DIT(IT) vs. NGC Network Asia LLC ignoring the fact that since the assessee had a Permanent Establishment in India and was liable to pay the advance tax, its case was distinguishable from the NGC Network Asia LLC case supra and therefore levy of interest u/s 234B of the Income Tax Act, 1961 was correctly made in assessee s case? D. Whether on the facts and in the circumstances of the case and in law, the Hon ble ITAT erred in holding that estimation of profit by the AO on presumptive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract. In other words, though only one contract was executed between the parties, the scope of work to be undertaken were distinct and separately ear marked and provided for. Assessee submitted that the intention of the parties to the contract is to treat Off-shore supply as a distinct and separate component of the contract. 5. During the assessment, the entire amount earned by assessee was held to be taxable in India, i.e., for both components, as per the Act as well as the Double Taxation Avoidance Agreement (DTAA). The A.O. held that the income from the Off-shore supply was also taxable in India. The A.O. further went on to hold that assessee should be taxed on estimation of profit on presumptive basis at 10% because assessee had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the composite contract specifically records the quantum of goods to be supplied outside India, the property in the plant and machinery got transferred to MRVC once they were loaded on the mode of transport from the country of origin to India and even the payment is made outside India. We cannot find fault with these factual findings and the decision of ITAT in holding that the income arising from Off-shore supplies are not taxable in India. Therefore, question A and B raised by the Revenue cannot be entertained. 8. Consequently, Question D will not arise because when there is no liability to pay tax, the question of demanding 10% on presumptive basis will not arise. Question D is accordingly rejected. We find support for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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