Offshore supply income not taxable in India where title and risk pass outside India and no Indian attribution exists.

Income from offshore supply of cables is not taxable in India where title and risk pass outside India and the receipts are not attributable to operations carried out in India or to a permanent establishment. The analysis follows settled jurisdictional High Court and prior orders in the assessee's own case, with no contrary material shown to justify departure. On that basis, offshore supply receipts were held outside the Indian tax net and the addition on such income was deleted.

---

---

Issues: Whether the income from offshore supply of cables was taxable in India.

Analysis: The Revenue challenged the deletion of addition made on offshore supply receipts. The Tribunal noted that the Ld. CIT(A) had followed the earlier orders in the assessee's own case and the jurisdictional High Court, which had consistently held that offshore supply income was not taxable in India where title and risk passed outside India and the offshore supply activity was not attributable to operations in India or to the permanent establishment. No contrary material was shown to warrant departure from the settled view.

Conclusion: The issue was decided in favour of the assessee and the offshore supply receipts were held not taxable in India.

Final Conclusion: The Revenue's appeal failed and the addition made on offshore supply income was deleted.

Ratio Decidendi: Income from offshore supply is not taxable in India when the transfer of title and receipt of consideration occur outside India and the income is not attributable to operations carried out in India or to the permanent establishment.

---