TaxTMI 
TaxTMI 
2015 (6) TMI 1211
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....the following questions of law for our consideration : (1) Whether on the facts and in circumstances of the case and in law the Tribunal erred in holding that SAS BV (IGN BV) was not a conduit for the assessee or a sham entity even though it has been established by the Assessing Officer in the assessment order that there was no commercial expediency in setting up via media companies and the only aim of this arrangement was to avoid assessee's direct taxability in India ? (2) Whether on the facts and in circumstances of the case and in law the Tribunal was justified in the upholding the cash system of accounting as adopted by the assessee and also in holding that the advertisement revenues could be offered on receipt basis even when ....
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....pose of undertaking advertisement sales activity. SAS BV was thereafter renamed as International Global Networks BV (IGN BV). The SAS BV (IGN BV) had returned income on its activity of advertisement sales, however, the revenue was of the view that SAS BV (IGN BV) is a conduit and the returned income of SAS BV (IGN BV) has to be assessed in the hands of the respondent assessee. M/s. SAS BV (IGN BV) challenged the finding of the Assessing Officer and carried the matter in appeal. Finally, the Tribunal by its order dated 21 May 2010 for the subject Assessment Year 199900 held that SAS BV (IGN BV) is not a conduit of the appellant and the amount earned by it is liable to be taxed. This order of the Tribunal dated 21 May 2010 passed by the Tribu....
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....we find that the impugned order has relied upon its earlier order dated 24 March 2004 passed in respect of SAS BV (IGN BV) for the Assessment Year 1997-98 to hold that it is open to a nonresident company to follow either the cash method of accounting or mercantile method of accounting. This issue stands concluded in favour of the assessee by the decision by this Court in the case of Pfizer Corporation v/s C.I.T., reported in 259 ITR 391, wherein it is held that a nonresident has an option to follow either the cash system or mercantile system of accounting. It is contended on behalf of the revenue that, in view of the decision of the Supreme Court in Standard Motors v/s C.I.T., reported in 201 ITR 391 it is not open to the nonresident to fol....