TaxTMI 
TaxTMI 
2025 (7) TMI 437
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....ome Tax Act, 1961 (hereinafter referred to as 'the Act') pursuant to directions dated 21.12.2024 of the Learned Dispute Resolution Panel-2 (hereinafter referred to as "DRP") under Section 144C(5) for Assessment Year 2012-13. 2. Brief Facts, leading to instant appeal are that, the assessee is a non-resident company and is incorporated under the laws of Thailand is engaged in the business of sale of cars, spare parts etc. It is responsible for exporting of Honda motorcycle, automobiles, power products and components manufactured in Thailand to over 80 countries around the world. The appellant during the course of proceedings before lower authorities vide its reply dated 10.12.2023 has submitted that it has received certain payments....
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....er referred to as "DTAA"), these services being rendered by it are not taxable as FTS. The Learned Assessing Officer being not satisfied with the replies of the appellant proceeded to hold that the services rendered by the appellant to HMSI does not fall under the business income and same was added as other income as explained in the Article 22 of the DTAA in Draft Order dated 31.03.2024 u/s 144C(1) of the Act. 2.1 On receipt and being aggrieved by the aforesaid draft order under Section 144C(1) of the Act, appellant filed his objections before DRP. DRP after considering the nature of services rendered, considers it appropriate to cover services rendered by appellant to HMSI under Article 22 of the DTAA, as according to DRP, the services....
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....India Private Limited. (iii) On perusal of the agreements to identify the nature of the transactions, it is noticed that certain relevant portions of the agreements specifically the annexures defining the services rendered under the agreements namely, Service Agreement of Infrastructure Services, Web EDI System Maintenance Agreement, etc. were not forming part of the Paper Book submitted by the assessee. (iv) Also considering tire nature of the services rendered, the Panel considers it appropriate to cover such services under Article 22 of the DTAA between India and Thailand, as the services are not directly connected to the activities in which the assessee operates. As the services mentioned in the above Para and the othe....
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....le as "Other Income" in accordance with Article 22 of DTAA or, in absence of FTS clauses in DTAA, services receipts falls under Article 7 of DTAA "Business Profits" and in the absence of Permanent Establishment (hereinafter referred to as "PE") of the appellant in India, whether chargeable to tax in the hands of appellant? 3.3 Appellant is engaged in the business of sale of cars, spare parts etc. and is also responsible for exporting of Honda motorcycle, automobiles, power products and components manufactured in Thailand to over 80 countries around the world. During the year under consideration though the appellant has submitted that, it has received payments aggregating to Rs. 12,30,804/-, however, HMSI to whom appellant rendered servic....
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....e issue involved in the matter. We, with the aforesaid observation disposing of the appeal by remitting the issue to the file of the DRP for reconsideration of the same afresh upon considering the relevant documents which are said to be missing in the papers/records filed by the assessee before it. The appellant is directed to submit all the details as indicated hereinabove before the Ld. DRP forthwith for consideration of the same afresh. The Learned DRP is further directed to finalise the issue within a period of eight months from the date of passing of this order by us are affording an opportunity of being heard to the appellant and upon considering the evidences as indicated hereinabove as further directed to be placed by the appellant ....