9911796707
TMI Blog2024 (1) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... rs without verifying the factual position qua contracts executed in these assessment years, in our view, the assessee must be given an opportunity to furnish the relevant contracts before the departmental authorities to establish its case that in the assessment years under consideration the assessee did not have any PE in India so as to bring to tax the income from off- shore supplies. We are inclined to restore the matters back to the Assessing Officer for fresh adjudication after thoroughly examining the relevant contracts and other materials brought on record. Hence, in the absence of any material change on the facts of the issue, the matter is being restored to the Assessing Officer for adjudication afresh. - SHRI SAKTIJIT DEY, VICE-P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms activities in India relating to offshore supply(ies). 2.3 That the Ld. AO has erred in not appreciating the fact that the said revenue is not chargeable to tax under the provisions of the Act, as the amounts received by the Appellant from sale of equipment outside India are not attributable to any business activity carried out in India. 2.4 That the Ld. AO has erred in facts and in law in making adjustments to the global financials while arriving at the impugned addition. 2.5 That the Ld. AO has erred in attributing a higher inconsistent rate of 75 % of the global profits towards alleged PE in India. 3. That on the facts and the circumstances of the case and in law, the Ld. AO has erred in taxing the revenues earned by Assessee from pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals is whether the assessee had Permanent Establishment (PE) in India in terms with Article 5 (2) of India France Double Taxation Avoidance Act (DTAA) and whether any part of the business profit can be attributed to the PE. 3. Briefly the facts are, the assessee is a non- resident corporate entity and is a resident of France. As observed by departmental authorities, the assessee is engaged in the business of Train Control and Signaling System (TCS). It is a fact that the assessee along with other consortium members was awarded contracts by Delhi Metro Rail Corporation (DMRC) for designing, manufacturing, supply, installation, testing, commissioning of the entire Train Control and Signaling Systems for Delhi Metro Train Corridor. Beside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to tax the receipt from off- shore supply of plants and equipments by attributing 1 % of the amount received to the PE. Though, the assessee contested the aforesaid decision of the Assessing Officer before learned Commissioner (Appeals), however, additions made were confirmed. 5. Before us, Sh. Deepak Chopra, learned counsel appearing for the assessee submitted that the Assessing Officer has blindly followed the earlier assessment orders and the directions of learned DRP, though, facts are completely different in the impugned assessment year. He submitted, in earlier assessment years the DRP has held that the assessee had an installation PE in India. He submitted, only one of the contracts is continuing form earlier years, whereas, al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the materials on record. On a reading of the impugned assessment orders as well as the orders of learned first appellate authority, it is absolutely clear that they have proceeded on the basis of the decision taken by the departmental authorities in past assessment years to conclude that the assessee had a PE in India. However, it is the specific contention of the assessee before us that the decision taken in the past assessment years cannot apply to the impugned assessment year, as, except one of the contracts, all other contracts under which the assessee has executed work in these assessment years are fresh contracts and the existence or otherwise of the PE has to be construed after examining the terms of the contract as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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