2018 (9) TMI 290

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....issued by Disputes Resolution Panel-II (in short "DRP"), New Delhi, Dated 29.09.2011, on the following grounds : "On the facts and the circumstances of the case and in law, the learned Assessing Officer, based on the directions of DRP; 1. Erred in assessing total income at Rs. 10,823,460/- as against NIL returned income; 2. Erred in holding that the Appellant has a fixed place of business in India and hence, constitutes a Permanent Establishment ('PE') in India, without appreciating that appellant does not have a PE in India in accordance with Article 5(2)(i) of the India - Mauritius Double Taxation Avoidance Agreement and therefore the income from these contracts will not be liable to tax in India; 3. Erred in calculating the to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ons before DRP against the draft order raising the objections for assessment of the income at Rs. 10.82 crores, holding P.E. in India and for direction to apply Section 44BB of the I.T. Act, taxability of assessee's income as "Royalty" and treating the assessee's income as 'fees for technical services'. The DRP vide order dated 29.12.2011 directed that there exists P.E. in India and assessee's income is taxable in India. This objection was rejected. The A.O. was directed to tax the income of the assessee at the rates prescribed under section 44BB of the I.T. Act. The A.O. as per the directions of the DRP computed the profit of the assessee @ 10% and assessed the income at Rs. 1,08,23,460/-. The A.O. also directed to charge interest under se....