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of <h1>Tribunal rules in favor of assessee, upholds order under section 44BBB</h1> <h3>Dy. DIT (IT), Versus M/s. Atomstroyexport</h3> Dy. DIT (IT), Versus M/s. Atomstroyexport - TMI Issues involved:1. Applicability of provisions of section 44BBB of the Act to payments received by the assessee from Nuclear Power Corporation of India Ltd. (NPCIL).Analysis:The judgment pertains to a case where the Assessing Officer (AO) challenged an order of the CIT(A) regarding the applicability of section 44BBB of the Act to payments received by the assessee from NPCIL. The assessee, a joint stock company under the Ministry of Atomic Energy, Russian Federation, was engaged in commissioning turnkey power projects. The AO determined the income of the assessee at a significantly higher amount than declared in the return of income. The AO argued that the assessee had business connections in India and its income was taxable in India. However, the FAA decided in favor of the assessee, stating that section 44BBB was not applicable.In the appellate tribunal, the Departmental Representative (DR) acknowledged that the issue had been decided against the AO in previous assessments and in favor of the assessee. The Authorized Representative (AR) highlighted that similar claims by the assessee had been accepted in other assessment years. The AR argued that the income earned by the assessee from service contracts should be computed under section 44BBB. Referring to previous tribunal orders, the AR emphasized that the assessee's activities fell within the scope of section 44BBB. The tribunal, citing precedent and analyzing the nature of the contracts, ruled that the assessee could not be taxed under section 9 of the Act and was covered by section 44BBB. Consequently, the tribunal upheld the order of the FAA and dismissed the appeal filed by the AO.Overall, the judgment revolves around the interpretation and application of section 44BBB of the Act to payments received by the assessee from NPCIL. The tribunal's decision was based on a detailed analysis of the contractual arrangements, previous tribunal orders, and legal provisions, ultimately concluding that the assessee's income should be computed under section 44BBB and not under section 9 of the Act.
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