2019 (11) TMI 1833

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....o Assessment Year (AY) 2015-16. 2. The assessee has raised the following grounds of appeal. Taxability of payment received under Offshore supply contracts. 1. The Learned DCIT/DRP erred in holding that the amount of Rs. 39,18,51,205 by the appellant company from the Offshore Supply Contracts was taxable in India. 2. The learned DCIT/DRP erred in holding that the amounts received by the appellant company from f he Offshore Supply Contracts are covered by the provisions of section 44BBB and consequently liable to tax in India. 3) The learned DCIT/DRP failed to appreciate that the receipts from the Offshore Supply Contracts are not taxable in India Relief Claimed Your appellant prays that: 1. The amount received under the off....

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....ndia. Accordingly, Explanation (1)(a) to section 9(1)(i) of the Act, provides for reasonable attribution of income to the operations carried out by the Non Resident of India and accordingly, included amount received towards offshore supply contracts and estimated income @10%, u/s 44BBB of the I.T.Act, 1961. The assesee has filed objections against the draft assessment order before the Dispute Resolution Panel (DRP)-1, Mumbai. The DRP-1, Mumbai, vide its directions 144C (5) of the I.T.Act, 1961, confirmed the findings of the Ld. AO and dismissed, appeal filed by the assesee. Consequent to directions of the DRP, the Ld. AO has passed final assessment order u/s 143(3) r.w.s. 144C(13) of the I.T.Act, 1961 and made additions towards profit from ....

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....deemed to accrue or arise in India in terms of section 9(1)(i) of the I.T.Act, 1961 and DTAA provisions and accordingly, not chargeable to tax. The relevant findings of the Tribunal are as under:- "15. Therefore, after analyzing the various case laws, statutory provisions, DTAA provisions and contractual terms and respectfully following judgment of Hon'ble Supreme Court in Ishikawajima-Harima Heavy Industries Limited Vs. DIT (288 ITR 408), we are inclined to hold that Offshore Supply contracts were carried and concluded outside India and hence no income there from deemed to accrue or arise in India as per Section 9(1) and DTAA provisions and accordingly, not chargeable to tax. The receipts thereof do not for part of receipts for the purpo....