2014 (1) TMI 607

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....merchant of sewing threads and yarns and other goods in the United Kingdom and elsewhere. 2. The applicant has entered into a Master Global Framework Agreement with BT UK under which BT UK provides the Coats Group entities with two-way transmission data through telecom bandwidth and interconnects the Coats group companies of UK located across the globe with managed wide area network (referred to as "data connectivity"). BT UK raises periodic invoices on the applicant for the connectivity thus provided to the Coats entities. The applicant, in turn recoups the cost so incurred to its Coats group companies for the connectivity utilized. As part of the agreement entered into between the applicant and BT UK, Madura Coats Private Limited ("MCPL"....

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....ative, would the cost recouped by the Applicant from MCPL be chargeable as "business profits" in the hands of the Applicant in India? In the event it is held to be chargeable as "business profits", in the absence of Permanent Establishment for the applicant in India the same would not be subject to tax in India?        4) Having regard to answers to Questions 1 to 3 above, whether there is any obligation for MCPL to deduct taxes at source and if so, at what rate? 4. The Revenue objected to the admissibility of the application stating that return of income was filed before filing the application. Relying on the decision by the AAR in the case of SEPCO III Electric Power Corporation (AAR No.1009 of 2010) dated....

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....iled. Copies of the returns were filed. 6. We have considered rival submissions of the applicant and the Revenue and also considered the facts and case decisions cited in their submissions. 7. When returns are filed under section 139 or in response to a notice under sub-section (1) section 142, they are processed under section 143(1) of the Act. While processing the return under section 143(1) the total income or loss are computed after making the following adjustments i.e. (i) any arithmetical error in return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return. It is also provided that no intimation under that section shall be sent after the expiry of one year from the end of the financial ....

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....te all the questions arising out of the return. In the case of Jagtar Singh Purewal reported in (1995) 213 ITR 512, this Authority considered the issue where though applicant declared amount in question in return, his application for advance ruling was maintainable in as much as no dispute was pending between applicant and department as return had been processed under section 143(1) and refund had been granted and, further, even in return, assessee had raised no dispute regarding assessability of amount but only claimed refund of excess tax paid. It was held that there was no pending dispute between the applicant and the Income-tax Department because the return had been processed under section 143(1) and the refund as prayed for by the appl....