2019 (3) TMI 221

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....Act' for short] in pursuance of the directions of the Dispute Resolution Panel (DRP) dated 28/09/2016. 2. The assessee has raised the following grounds of appeal: "The grounds stated hereunder are independent of and without prejudice to one another. The Appellant submits as under: 1. Holding that where there is no specific Article for taxability of particular payment in the Double Taxation Avoidance Agreement (`DTAA'), the provisions of the Income Tax Act, 1961 (`the Act') would be applicable a) On the facts and in the circumstances of the case, the learned Assessing Officer (`AO') erred in law in holding and the learned Dispute Resolution Panel (`DRP') erred in law in confirming that where ....

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....ssee has filed the Return of income on 30/03/2015 with total income 'nil'. Subsequently, the case was selected for scrutiny under CASS and notices u/s 143(2) and 142(1) of the Income-tax Act,1961 ['the Act' for short] calling for details were served. In compliance, the learned AR appeared from time to time and filed details. The Assessing Officer (AO), on perusal of the financial statements found that the assesseecompany has received payments towards managerial/ technical services aggregating to Rs. 2,68,96,805/- from M/s.ABB India Ltd., 3. Whereas the assessee has claimed as exempt as the same is not taxable in India as per India-United Arab Emirates (UAE) Treaty and the DTAA between India and UAE as it does not have a cla....

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....ceedings, has confirmed the action of the AO and passed the order u/s 144C(5) of the Act dated 28/09/2016. Subsequently the AO passed final assessment order dated 25/10/2016 u/s 143(3) r.w.s. 144C(5) of the Act in pursuance of the directions of the DRP determining the total income at Rs. 2,68,96,805/-. 4. Aggrieved by the order, the assessee has filed the appeal before the Tribunal. The learned AR submitted that the AO erred in applying the provisions of section 9(1)(vii) and Explanation 2 in respect of amounts received from ABB India treating it as FTS. The learned AR emphasized that in group companies' case, the similar matter was dealt and relied on decision of M/s.ABB FZLLC vs. DCIT (166 ITD 329)(Bang) wherein the payments are hel....

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....tablishment in India. The explanations of the learned AR are not satisfactory and could not substantiate with any evidence that there is no permanent establishment in India. We found the decisions relied by the learned AR in respect of Booz & Company (ME) FZ-LLC (supra) where the amount received by the UAE group company is business income as per DTAA between India and UAE in the absence of any Permanent establishment of said company in India and such business income is no taxable in India. 7. Similarly, in the case of GECF Asia Ltd. (supra), it was considered that where a non-resident company renders services relating to industrial, commercial or scientific experience, in such a case, if those services do not involve imparting of know-ho....