2012 (7) TMI 336

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and its income has to be assessed as a business income under Article 5 read with Article 7 of the DTAA between India and Germany, instead of assessing the gross total receipt of Rs.40,23,04,478 as fee for technical services, taxable @ 10% on thee gross amounts. In ground No.7, assessee has pleaded that learned Assessing Officer has erred in rejecting the claim for exemption of Rs.1,46,52,283 which was claimed by the assessee that these receipts are not attributable to PE in India, they are related to the services rendered by Head Office and in terms of para 1(b) of protocol to DTAA between India and Germany they cannot be taxed in India. In ground Nos. 8 and 9, assessee has submitted that learned Assessing Officer has erred in disallowing ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....close any facts or reasons as to why the learned DRP did not find any force in the objections of the assessee. 3. With the assistance of learned representative, we have gone through the record carefully. The assessee is a company incorporated in Germany having its registered office at 60547 Frankfurt A.M. Main, Frankfurt, Germany. It has filed its return of income for assessment year 2007-08 declaring nil income. The case of the assessee was selected for scrutiny assessment. It emerges out that the assessee is a resident of Germany and, therefore, for the purpose of Indian Income-tax Act, it is a non-resident assessee. The assessee has set up its project office in India for adjudication of contract entered into between Fraport A.G. and D....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....34C and also initiation of penalty u/s. 271(1)(c).   We considered the arguments forward by the assessee representatives as also written submission vis-à-vis the draft assessment order. We find that all the objections of the assessee have been answered in details by the AO who has given reasonable and cogent replies to the objections. There is one issue which is regarding the technical support fee, provided by head office amounting to Rs.1,46,56,283. The assessee has claimed that this amount had already been included in the total receipt of Rs.40,23,04,478 that being the case the assessee claims that this amounts to double addition. The A.O. is, therefore, directed to verify this vis-à-vis the account of the assessee a....