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TMI Blog2023 (12) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... t (PE) in India in the form of its subsidiary - AO proceeded to attribute 50% of the business profits by applying the global profit ratio HELD THAT:- The record shows that the Tribunal has returned a finding of fact that the respondent/assessee does not dispute that it had a fixed place PE in India in the form of Ricardo India. Inter alia, what persuaded the Tribunal to rule in favour of assessee is the other aspect which was that if the commission/remuneration paid to Ricardo India was reduced from the profit attributed to the PE, then no further attribution could have been made. Thus when RIPL, a domestic subsidiary company, has already been remunerated at arm s length no further attribution of profit to PE would be warranted. Even otherw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Double Taxation Avoidance Agreement [in short, "DTAA"]. 5. The core business of the respondent/assessee concerns providing testing services to its clients, concerning transmission systems designed for automobiles at its centers located in U.K. 6. In the period in issue, the respondent/assessee had filed its Return of Income (ROI) in which it declared its income as "nil". The stand taken by the respondent/assessee was that the income earned by it from customers located in India was not taxable. 7. The record shows that the Assessing Officer (AO) concluded that the respondent/assessee had a Permanent Establishment (PE) in India in the form of its subsidiary, i.e., Ricardo India Pvt. Ltd. [hereafter referred to as "Ricardo India"]. 8. Bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission/remuneration paid to it on Arm's Length basis: Assessment Year Profits attributed to PE (A) Commission/remuneration paid on arm's length basis (B) 2009-10 1,46,24,821/- 3,31,16,923 2010-11 38,97,594/- 3,36,21,632 2011-12 63,30,619/- 4,00,05,437 2012-13 1,00,91,845/- 4,09,81,100 2013-14 1,21,89,053/- 4,10,77,874 2014-15 91,24,923/- 4,28,58,978 2015-16 90,02,297/- 5,69,29,447 2016-17 4,50,38,195/- 6,80,06,297 13. The record shows that the Tribunal has returned a finding of fact that the respondent/assessee does not dispute that it had a fixed place PE in India in the form of Ricardo India. 14. Inter alia, what persuaded the Tribunal to rule in favour of the respondent/assessee is the other aspect which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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