2023 (10) TMI 404

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the facts that in the case of Ishikawajma Harima the contract was divisible separately in Off-shore and On-shore component, whereas, in the fact of present case, it is a indivisible contract and decision of AAR in the MERO Asia Pacific Pte Ltd. (AAR/981/2010) will directly apply in this case?" B. "Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT erred in holding that Off-shore supply is not taxable in India, ignoring the role played by PE in execution of supply, procurement of goods and materials from abroad into India?" C. "Whether on the facts and the circumstances of the case and in law, the tribunal has erred in holding that the interest u/s 234B is not leviable following the decision of the j....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Hyderabad project office and offered the business income/loss to tax. 4. The Assessing Officer (A.O.) held that income from the Offshore supply is also taxable in India. It is assessee's case that the contract that it had entered into with MRVC, though a composite contract, the scope of work envisaged that the price for plant and equipment to be supplied from abroad is a separate contract and the price for plant and machinery to be supplied within India quoted in the currency of India in rupee terms will be a separate contract. In other words, though only one contract was executed between the parties, the scope of work to be undertaken were distinct and separately ear marked and provided for. Assessee submitted that the intention of the p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lity of the amounts received by assessee on account of Off-shore supply, the ITAT has come to a factual finding that though assessee had entered into a contract with MRVC for supply of equipments and services, Off-shore as well as On-shore, the terms of the contract distinctly set out the quantum of Offshore supplies to be made by assessee to MRVC and also the quantum of payment to be received by assessee from MRVC outside India. The ITAT after considering the contract between assessee and MRVC, came to the conclusion that the composite contract specifically records the quantum of goods to be supplied outside India, the property in the plant and machinery got transferred to MRVC once they were loaded on the mode of transport from the countr....