2023 (8) TMI 165 - SCH - Income Tax

High Court rules on first issue, rendering permanent establishment question moot. Coordinate Bench order influences decision.

The case outcome involved the determination that due to the first issue being decided against the department, it was unnecessary to address the permanent ... Income taxable in India - Income attributable to the operations carried out in India - attribution of only 15% of the revenue as income accruing /arising in India - Permanent establishment in India - HELD THAT:- As in view of case Director of Income Tax, New Delhi vs. Travelport Inc.[2023 (5) TMI 227 - SUPREME COURT] and having regard to the fact that the Coordinate Bench observed that since the first issue was held against the department, it was not necessary to go into the second issue, namely, the question regarding permanent establishment. Therefore, appropriate orders may be made in these cases filed by the assessee(s). We find that though the High Court has stated that there was no substantial question of law in the appeals filed by the assessee(s) before the High Court, the fact remains that at this stage going into the question as to whether there was a permanent establishment of the assessee(s) in India is now wholly academic and therefore would not require consideration and answer in these appeals. Issues involved:The judgment deals with the issue of whether there was a permanent establishment of the assessee(s) in India and the relevance of a Coordinate Bench order in a similar case.Permanent Establishment Issue:The Coordinate Bench of the Supreme Court observed that since the first issue was held against the department, it was not necessary to delve into the second issue of permanent establishment. The High Court mentioned that there was no substantial question of law in the appeals filed by the assessee(s), making the consideration of the permanent establishment question academic and unnecessary for the disposal of the appeals. Consequently, the questions of law raised in the appeals/petitions were not addressed, and the appeals/petitions were disposed of. Any pending application(s) were also disposed of as a result of this decision.Coordinate Bench Order Relevance:The judgment emphasizes the importance of a Coordinate Bench order in guiding the decision-making process. The learned counsel for the appellant/assessee(s) referred to a specific paragraph of a previous order by a Coordinate Bench, which influenced the decision in the present case. The Coordinate Bench's observation regarding the first issue being decided against the department played a crucial role in determining the course of action in the current appeals/petitions. This highlights the significance of precedent and the impact of previous judgments on subsequent cases.