The assessee had artificially split the composite contract to...

The assessee had artificially split the composite contract to avoid establishment of a permanent establishment (PE) in India and tax payment. The Assessing Officer (AO) held that the assessee has a PE in India in the form of a fixed place and dependent agent PE (DAPE) through GE Power India Ltd. (GEPIL). However, the Coordinate Bench of the Tribunal, on similar facts for the same assessee for Assessment Years 2018-19 and 2019-20, had held that there is no business connection of the assessee in India, and no fixed place PE or construction PE exists. Consequently, the provisions of Section 44BBB of the Act are not applicable. Therefore, the receipts from offshore supplies and the amount received from GEPIL are not taxable in India. The addition made by the AO by bringing offshore supply receipts to tax is directed to be deleted. Interest u/s 234B is consequential and the AO is directed to levy it accordingly.