2022 (2) TMI 1287

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....such statement we do not find it necessary to adjudicate the form ground for academic interest and the same stand dismissed. 4. The substantive grievance of the assessee relates the treatment of Bombardier Transportation India Ltd. (BTIN) as the "Fixed Place Permanent Establishment" ("Fixed Place PE") of the assessee in India. 5. The under lying facts in this issue are that the assessee company is registered and incorporated under the laws of Sweden. The assessee, is a tax resident of Sweden in terms of Article 4 of India Sweden Tax treat. It is engaged in the business of manufacturing of train control and signaling systems for mass transit system. 6. The assessee entered into two contracts BS-02 and CS-01 with Delhi Metro Rail Cor....

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....ence, the AO concluded that the income in respect of the DMRC contract BS02 & CS 01 needs to be attributed to the PE in India." 9. The CIT(A) further extracted the findings of the DRP for A.Y.2011-12 based on the contract between the assessee and DMRC at para-7.7 of his order and concluded as under :- 10. Representatives of both the sides were heard at length. Case record carefully perused. 11. A perusal of the assessment order and the order of the CIT(A) was show that both the authorities have followed the assessment order and the order of the first appellate authority for A.Y.2011-12. This Tribunal in A.Y.2011-12 in ITA No.859/Del/2016 order dated 29.10.2020 decided the issue. The relevant findings of the Tribunal read as under :....

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....ased on erroneous appreciation of wrong facts and on such erroneous appreciation of wrong facts, the DRP held that BTIN is the PE of the appellant in India without appreciating the true facts that the appellant has no place of disposal in India in the office of BTIN from where the appellant could have conducted its business in India. 12. On finding parity on facts, respectfully following the decision of the Coordinate Bench we direct the AO to delete the impugned additions. Ground No.3 with all its sub grounds are allowed. 13. Other grounds are consequential in nature and need no separate adjudication. 14. In the result, the appeal filed by the assessee is allowed. 15. The order is pronounced in the open court on 10.02.2022 in t....