Income tax - Section 9, 195 - As per the provision of Explanation 1(a) to section 9(1)(i) of the Act, it is only that portion of the income which is 'reasonably attributable' to the operations carried out in India shall be deemed to accrue or arise in India for the purpose of taxation under the Act.…
Income Tax - Sections 143(3), 144C(13) - The issue of Management Support Charges/ FTS and the issue of make available stands adjudicated by the order of the Tribunal in assessee's own case for the A.Y. 2012-13 in ITA No. 4524/Del/2017 and in A.Ys. 2013-14 and 2014-15 in ITA No. 2986 & 4608/Del/2019,…
Income Tax - Sections 143(3), 144C(13) - In the present case, the economic ownership of the income from the project lay with the PE and such income would have ordinarily been allocated to it, had the contract survived. The economic ownership of such income therefore was effectively connected with amounts,…
Income-tax - Sections 144C(5), 143(3) - On the issue of taxability of income from testing and other services, the undisputed fact is that these services were rendered outside the country i.e. in Finland. Article 12(5) of the India Finland DTAA reads that royalties or fees for technical services shall…
Income Tax - Section 143 - SC has carved out the distinction between the payments at the time of setting up of the manufacturing facility and the payments made once the manufacturing process has already began. In the former case, royalty expenditure for setting up the manufacturing facility is capital…
As regards Infosys Technology Ltd., it is submitted that this company is functionally dissimilar to the Assessee on various counts and therefore it ought to be rejected from the final list of comparables. It is submitted that Infosys renders services like infrastructure management, business process …
The coordinate bench in assessee's own case has considered the issue of inclusion of R Systems International Ltd which was excluded for the same reason that the financial year is not the same. The Bench observed that: assessee is challenging such rejection in respect of R. Systems, CG Vak Software, …
Income Tax - Sections 143(3), 144C(13) - The assessee humbly submitted that export incentive income earned is directly linked to the provision of services by the entity to its group company. Accordingly. income earned by sale of SEIS scrips should be considered as operating in nature while determining…
The CIT (Appeals) has categorically observed that there is a qualitative difference between the MS ingots sold by the AE to the assessee as compared to those sold by the AE to third parties. Further, the assessee has been able to produce substantial evidence to prove that the difference in prices is…
Income Tax - Section 201 - The claims and contentions of the parties with regard to issues on merits as well as legal grounds, cannot be considered at this stage as they have to be thrashed out when the hearing in the corresponding appeals takes place. However, considering the prima facie case, balance…
Income tax - Sections 9(1)(vi) - The subscription fees received by Assessee for providing access to its online database is not taxable as royalty both under Section 9(1)(vi) and under Article 12(3) of the India-Switzerland DTAA. Thus, relies on co-ordinate bench ruling in Assessee's own case for AY …
Income tax - Sections 9(1)(i) - As per the assessee, the title in the goods i.e. escalators and elevators was transferred to DRMCL and MMRPL outside India and payment thereof was also received outside India, therefore the transaction cannot be taxed in India. It is the plea of the assessee that the …
Income tax - Sections 9(1)(vii) - The assessee has a PE in India has not been disputed by the Assessing Officer. It is also a fact on record that in terms with airport operator agreement, various kind of services are being rendered in connection with the operation of the airport. Thus, it is evident…
Income Tax - Section 143 - It is pertinent to point out that the assessee has alleged that TPO has included both the comparables without notices or neither any data base nor any such process was conducted by the TPO. It is also evident that the DRP has also not given a specific finding on the objection…
As regards transfer of power, on a specific query of the Bench, the DR has furnished letter enclosing a sworn affidavit of the Assessing Officer admitting that against the order of Commissioner (Appeals) for assessment year 2015-16, no appeal has been preferred by the Revenue before the Tribunal. The…
Income Tax - Sections 10, 14A, 36(2) - On perusal of the order of the Assessing Officer as well as the CIT (Appeals) we observe that there is no dispute that the assessee has acquired M/s. Race Allied Services business of supply of diesel to tours and allied services to telecom companies, Proprietor…
The assessee is providing the management services and co-ordination services. These two services are not at all comparable with KPO services. However, with respect to the creative services there is a creation of advertisement concept and artistic development. Therefore, the creative services may be …
Income Tax Act - Section 143(3), 144C(13) - The only issue for our consideration is Arm's Length Price of the services provided by the AE, Benteler Automotive (China) Investment Ltd., to the assessee. The assessee had paid an amount of Rs. 11,52,81,428/- to Benteler Automotive (China) Investment Ltd.,…
The TPO did not make any distinction between the AE and non-AE transactions while computing interest on delayed receivables in the 92CA order passed. The margin accepted by the competent authority under MAP in respect of the Switzerland AE transaction has to be therefore regarded at arm's length for…
Income tax - Sections 92CA(3A) - Coming to the question of how the 60 day period is to be computed, the critical question would be whether the period of 60 days would be computed including the 31st of December or excluding it. Section 153 states that no order of assessment shall be made at any time …