https://www.taxtmi.com/caselaws?id=751804 The ITAT Delhi held that offshore supplies of plant and equipment cannot be treated as standalone activities when part of an integrated project contract. The tribunal found that a contract for designing, supplying, erecting, and commissioning a complete paper mill constitutes a composite indivisible contract, making offshore supply receipts taxable in India. However, the tribunal criticized the AO's adhoc attribution of 25% profits to the PE and the 5% profit rate estimation by Commissioner (Appeals) as lacking proper analysis. The case was remanded to AO for fresh adjudication after examining individual contract terms for different projects and properly analyzing the PE's role in offshore activities. en-us Tue, 23 Apr 2024 00:00:00 +0530 Thu, 25 Apr 2024 06:35:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751804 The ITAT Delhi held that offshore supplies of plant and equipment cannot be treated as standalone activities when part of an integrated project contract. The tribunal found that a contract for designing, supplying, erecting, and commissioning a complete paper mill constitutes a composite indivisible contract, making offshore supply receipts taxable in India. However, the tribunal criticized the AO's adhoc attribution of 25% profits to the PE and the 5% profit rate estimation by Commissioner (Appeals) as lacking proper analysis. The case was remanded to AO for fresh adjudication after examining individual contract terms for different projects and properly analyzing the PE's role in offshore activities. Case-Laws Income Tax Tue, 23 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751804