TaxTMI 
TaxTMI 
2025 (11) TMI 629
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....an order and has issued a communication dated 30.10.2024 which reads as follows: 3.1 It was submitted that the said communication shows that the assessee u/s 143(3) r.w.s. 144C(13) has been passed by DCIT, Circle- 1(1), Kolkata and the said is forwarded herewith. It was submitted that the covering letter which had been a DIN is a signed document. The assessment order which has there attachment thereto and which is in a word format does not have the name of the Assessing Officer much less signature. The ld. AR drew our attention to page 1780 which is the covering letter, page 1781 which is the said assessment order and 1796 which is the last page of the assessment order. It was submitted that the said document does not contain signature nor it has DIN. It was submitted that every communication has to have a DIN. The covering letter has the DIN and the attached assessment order did not have a DIN. The ld. AR further drew our attention to the assessee filed along with the appeal which is ad idem, the order is not in the word format except for the first page wherein the details of the assessee is mentioned, the said order reads as follows: 3.2 It was submitted that the assessment....
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....under :- 16. The Id. Departmental Representative referred to the provisions of Rule 127A i.e.the Rule framed in pursuance to the provisions of section 282(2) of the Act for service of notice, summons, requisition order and other communications. The Id. Departmental Representative has pointed that since the assessment order communicated to the assessee originated from the designated E-mail ID of the Assessing Officer, therefore, in terms of rule 127A, the said document shall be deemed to be authenticated. The said argument is desultory and not in unison with the provisions of section 282A of the Act. The relevant provisions of section 282A of the Act are reproduced herein below: "282A: Authentication of notices and other documents: (1) Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed and issued in paper form or communicated in electronic form by that authority in accordance with such procedure as may be prescribed. (2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be deemed to be a....
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.... 18. In the case of Vijay Corporation (supra), the Co-ordinate Bench in a case where the assessment order served on the assessee was not signed by the Assessing Officer, held that requirement of signature of the Assessing Officer is a legal requirement. The omission to sign the order of assessment cannot be cured by relying on the provisions of section 2928 of the Act and held the order invalid. 19. Ergo, in facts of the case and documents on record, we hold the unsigned impugned assessment order served on the assessee invalid and quash the same. 20. Since, we have granted relief to the assessee on the legal ground raised in ground no. I of appeal, the other grounds raised in appeal on merits have become academic, hence, not deliberated upon. 21. In the result, appeal of the assessee is allowed. 7. Respectfully following the observations of the coordinate bench of the Tribunal made in this regard, we allow the issue raised by the assessee in additional ground holding that the assessment order framed by the Assessing Officer giving effect to the directions of the ld. DRP, is not maintainable as the assessment order is not authenticated by....
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....f the name and office of such income-tax authority- (i) is printed on the e-mail body, if the notice or other document is in the e-mail body itself; or (ii) is printed on the attachment to the e-mail, if the notice or other document is in the attachment, and the e-mail is issued from the designated e-mail address of such income-tax authority; (b) in case of an electronic record, if the name and office of the income-tax authority- (i) is displayed as a part of the electronic record, if the notice or other document is contained as text or remark in the electronic record itself; or (ii) is printed on the attachment in the electronic record, if the notice or other document is in the attachment, and such electronic record is displayed on the designated website. (2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the designated e-mail address of the income-tax authority, the designated website and the procedure, formats and standards for ensuring authenticity of the communication. Explanation. - For the purposes of this rule, the expressions- (i) "e....
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....B.V (referred to supra), the assessment order passed is annulled and is hereby quashed. 5. In the result, the appeal of the assessee is allowed. Kolkata, the 29th August, 2025. ============= Document 1 1780 GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), IT, KOLKATA To. DANIELI AND C OFFICINE MECCANICHE S P A UNIT NO. 503 MANISHA BUILDING, PLOT NO. 75- 76,Nehru Place Nehru Place SOUTH DELHI 110019,Delhi India PAN AABCD9695E Assessment Year: Dated: 30/10/2024 DIN & Letter No : ITBA/COM/F/17/2024-25/1070054651(1) 2021-22 Sir/ Madam/ M/s, Subject: Online service of Orders - Letter मूलो Respected Sir, INCOM ARTMENT In response to DRP's order issued on 29:09.2024 issment Order u/s 143(3) r.w.s. 144C(13) of the I.T. Act, 1961 has been passed by DOIT, Circle-1(1), IT, Kolkata for the AY 2021-22 and the same has been forwarded to you for your ready reference. Order is hereby attached. Kindly check the attachment in the attachment section. RONIT CHAKRABORTY CIRCLE 1(1), IT, KOLKATA (In case the document is digitaly signed please refer....
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....pliance date of the stated notice was 25.10.23. It has been seen that you had not furnished the requisite details by the compliance date. Further, it has also been observed that you have submitted the documents for the first time on 12.12.2023 Le 2 months after the stated notice which is close to the limitation date. There is no sufficient cause demonstrated for the stated delay. The submissions dated 12.12.23 has been examined and perused and it has been found that certain details are incomplete. Details of income spc CERTIFIED TOIm A4 Document 3 1 and expenses received/borne by the HEAD OFFICE and reimbursed by the project office and vice versa Further vide Q6, it was observed the assessee had claimed the following income as tabulated below: Description Amount Nature Tax Rate Applied Income from project office 25928908 Business Income 40% Income from Head Office 84672924 FTS 10% 6. The assessee was asked to justify the above with reasoning and evidence for the lower FTS Income and show cause as to why the same should not be treated as business income in light of the existing PE Upon perusal of the details submitted, it was seen that the assessee has....
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....ed Financial Statements and the contract copy. Your goodself has contended that basis the above documents, It is amply clear that Design and Drawings are part of a contract undertaken by the assessee for its work in India through Its Project Office. c) The assessee had tried to split the contract between Off-shore and on-shore to leverage the tax differential of Royalty and Business Income and to safeguard such action both the ITA Act and " DTAA has recommend treating such type of contract as composite contract and the resulting Income to be treated as business Income under the Permanent Establishment. PROJECT OFFICE NOWYDELN Document 5 DANIELI In this regard, we submit the following submissions in rebuttable to the arguments given by your goodself: a Rebuttal against the 1" Contention - Project office can undertake all activities as mentioned In the Contract. Your goodself In the Impugned notice has given the reference of the RBI approval letter dated 22 October 2010 furnished before your goodself wherein your goodself has contended that approval given by RBI authorities for opening of PO is to execute the entire contract entered into by the Company. However,....
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.... Document 6 DANIELI The fact that design and drawings are imported from Italy can be evidences from the price schedule (similar in other contracts as well reproduced in Point No. 3) which Is reproduced below: SL No. in other contracts as well reproduced in Point No. Description Price Foreign (EURO) Foreign (USD) Indian (supplies& services including duties and taxes at base date) In Rupees 1 Design & Engineering 6,200,000 2,970,000 211,644,606 [For Indigenous portion Refer Table-10) For design services, supplied from india are within the are in other contracts as well reproduced in Point No. Description Price Price [For Indigenous portion Refer Table-10) For design services, supplied from india are within the For design services, supplied from india are within the scope of two Indian entities which are evidenced from the price schedule reproduced below: PRICE SCHEDULE FOR INDIGENOUS DESIGN & ENGINEERING (Price In Rupees) SL.No. Items Shapeorji & Paloonji Danieli India Ltd 1 Basic Cost 109,260,000 82,802,000 Service tax 10,926,000 8,528,606 Education Cess on service Tax 328,000 Incl above 4 Any other taxes, duties & ....
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....HEDULE FOR IMPORTED DESIGN AND ENGINEERING 1,584,453 1 OFFICINE LI 2 Document 8 DANIELI nature of the contract, but the same should not be construed keeping in view the taxing provisions ... As regards the question of division of taxable income of offshore services parties were ad idem that there existed a distinction between onshore supply and offshore supply. The Intention of the parties, thus, must be judged from different types of services, different types of prices .... " (Emphasis Supplied) Your goodself has contended that the Act specifically mentions that in case of composite contracts the Income should be treated as business Income. Without prejudice to our submission that the contract Is not a composite contract, we humbly submit before your goodself, that for a foreign entity only such Income generated from activities carried on in India will be considered as accrued in India and would be subjected to tax as per the IT Act. In this context, It is humbly submitted before your goodself that the designs are basic engineering work done using standard technologies and the work is carried outside of India. The designs and drawings are modi....
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....ing the granting of a licence) in respect of a patent. Invention, model, design, secret formula or process or trade mark or similar property | (f) the Imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property: (a) the use of any patent, invention, model, design, secret formula or process or trade mark gr simliar property : (iv) the Imparting of any information concerning technical, Industrial, commercial or scientific knowledge, experience or skill; [v] the ine or right to use any Industrial, commercial er scientific equipmenth but not including the amounts referred to in section 4458/1 (1) the transfer of all or any rights (Including the granting of a ticences) in respect ofs any copyright. literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting; of (vil) the rendering of any services in connection with the activities referred to In sub-clauses (f) to (iv), (iva) and (v). On perusal of the above provisions, your goodself would note that royalty only....
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....ivity of a trading, commercial or industrial nature other than what may be necessary for the execution of the aforesaid contract, without prior permission of the Reserve Bank of India. III. The office in India will meet all the Its expenses in India only from out of the inward remittances received from head office through normal banking channels or the rupee amounts to be received under the contract. IV. The office in India shall not borrow or lean any money from/to any person in India without prior permission of the AD bank (HSBC)/Reserve Bank of India. V. The office in India shall not acquire, hold (otherwise than by the way of lease) for a period not exceeding five years. transfer or dispose of any immovable property in India without obtaining prior permission of the Reserve Bank of India under section 31 of the foreign Exchange Regulation Act 1973. VI. The office in India will submit to us annual audited accounts of Its Income and expenditure in India along with bank certificates evidencing receipt of funds from the Head Office. In the approval copy, nowhere it is mentioned that the approval is only for supervision work to be done by PO. In fact, in point 1. of 2....
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.... contingencies and generally all matters incklental thereto and ancdiary thereof, affecting the emcution and completion of the Facdies, and The Contractor has agreed to undertake deskin & engineering, civil engineering wow. structures & equipment, fabrication & supgdy of steel structures, manufacture & supply of plant and equipment, manufacture A sipply of retractodes, astermediate storage, insurance & handling. erecton testing. pre-commissioning, start top correresianing and demonstration & estatfisiunent of performance guarantee parameters of the Faceties For DANIELI & C. OFFICINE MECCAN CHE EPK The Contract says that the Indian company has decided to set-up installation of a production complex (Facilties) at Nagarnar, Chattisgarh, for which the assessee will act as the Contractor to execute the award. At point (c) on Page 2 of the contract, it is clearly written that the Contractor is in a position to disclose impart, deliver and transfer the requisite engineering data, drawings and documents of those items which are in the scope of the Contractor .... for the engineering of the Facilities and for erection, start-up and commissioning of the Facilities with the ....
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....payments to an employee of the person making payments, in consideration for the services of a managerial, technical or consultancy nature, including the provisions of services of technical or other personnel. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such a case, the royalties or fees for technical services shall be taxable in that other Contracting State according to its own law. 6. Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political or administrative sub-division, a local authority or a resident of that State. Where, howev....
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.... billing schedule. Thus, these are composite contracts. Thus, the composite contract involving inextricably linked components of "engineering of the facilities and for erection, start-up and commissioning" which need to be considered together for determining taxability of the same. 3. It is noteworthy, that the instant case is distinguishable from the Supreme Court judgement, dated 4.1.2007, in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT [2007] 288 ITR 408 (S.C.): 207 CTR 361(S.C.). Herein the assessee has a territorial nexus with India The Assessee has significant presence through its Project Office and has been awarded multiple contracts. As per the audited financials there were 16 projects as on 31.03.2021. The work is technical and specialised and the nature of contracts is on turnkey basis. These contracts involve Engineering, Procurement and Commissioning. The assessee cannot take the plea of differential treatment w.r.t supply of design and drawings which are part of engineering, erection and commissioning. Not only the services are rendered in India but also utilised in India. Thus, the instant case falls within the purview of Sec 9(1)(vii) r.w....
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....e provisions of this Act : Provided that no deduction shall be allowed,- (1) in respect of any expenditure or allowance which is not wholly and exclusively incurred for the business of such permanent establishment or fixed place of profession in India; or (ii) (if) in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to its head office or to any of its other offices: Provided further that the provisions of section 44BB shall not apply in respect of the income referred to in this section. (2) Every non-resident (not being a company) or a foreign company shall keep and maintain books of account and other documents in accordance with the provisions contained in section 44AA and get his accounts audited by an accountant as defined in the Explanation below sub- section (2) of section 288 and furnish along with the return of income, the report of such audit in the prescribed form duly signed and verified by such accountant. Explanation .- For the purposes of this section,- (a) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of secti....
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....evy of penalty "This ground of objection is related to initiation of penalty proceeding u/s 270A of the Act. This ground is consequential in nature and hence rejected being premature at this stage." As seen above, the Hon'ble DRP-2, New Delhi has upheld Assessing Officer's decision of ascertaining the rate of taxation on income from Designs and Drawings which was ascertained at 40% under section 44DA of the Act in the draft assessment order u/s 144C(1) of the Act as the panel did not find any infirmity with the order of AO in the regard of rate of taxation. In regard of Ground No. 3 of assessee's petition and the direction of Hon'ble DRP-2, New Delhi, the expense details have been carefully perused. As per assessee's submission during the course of assessment, no specific expense can been connected to the FTS of Rs. 8,46,72,924/- among all the expense details. Therefore, the amount of Rs. 8,46,72,924/- on account of Design & Drawings, being effectively connected to a Permanent Establishment (PE)/ fixed place of profession in India - is computed under the head of Business Income. The tax rate applicable u/s 44DA of the Act is 40% (plus applicable surcharge and education ces....
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....see vide order dated 27/12/2023. The assessee had filed Note: If digitally signed, The date of digtal signature may be takan as dale of document. AAYAKAR BHAWAN POORVA, 110 SHANTIPALLY, E.M.BYPASS, KOLKATA, West Bengal, 700187 Email: [email protected], Note :- The website address of the -fiting portal has been changed from seen.Incometaxindisetting.gov. is to see.incomelat.aos.in. Document 19 AABCDOBISE- DANIELI AND C OFFICINE MECCANICHE A.Y. 2021 ITBAIAST/S/143(3)/2004-25/10701905200 application before DRP against the Draft Assessment order. The order of the Hon'ble DRP dated 29.09.2024 was received by the undersigned on 03.10.2024 and the final order is hereby passed accordingly. 2. Return declaring total income Rs. 11,06,01,833/- was electronically filed by the assessee on 14.03.2022 for the Assessment Year 2021-22 (hereafter referred to as A.Y.). The assessee's case was selected for scrutiny through CASS and notice u/s 143(2) of the Income Tax Act, 1961 dt.27.06.2022 was issued and served on the assessee. Pursuant to that, notices under Section 142(1) of the Income Tax Act were issued to the assessee dated 12.10.2023 and 15.12.2023. In respo....
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....hy the same should not be treated as business income in light of the existing PE Upon perusal of the details submitted, It was seen that the assessee has treated the Income of Rs. 8,46,72,924 as Royalty Income for Designs Drawings and deducted TDS of 10% on it as per the beneficial provision of Sec 115 of IT Act, 1961. However, it had shown the rest of income (Rs 2,59,28,908) as income from Project Office treating it as business income on which TDS of 40% has been deducted. 7. Subsequently, a Show Cause notice was issued on 22.12.2023 asking why the offshore income of Design Drawing should not be treated as part of a composite contract executed through the PO/PE in India and thereby income of Rs. 8,46,72,924/- be treated as business income to be taxed @ 40% as per the provision of the Act. In response to the Show Cause notice dated 22.12.2023 assessee submitted his reply on 26.12.2023 which is reproduced as follows: Document 21 AABCD96PSE- DANIELI AND C OFFICINE HECCANICH A.Y. 202 ITBAIAST/S/143(3)/2024-25/1070190520 DANIELI & C. OFFICINE MECCANICHE S.p.A., PROJECT OFFICE - NEW DELHI oliel: No. 302 5° Floor Meniska BullEng, Plet No. 73-76 Nekro Place New Delhi-11....
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....etter dated 22 October 2010 furnished before your goodself wherein your goodsetf has contended that approval given by RSI authorities for opening of PO is to dxscute the entire contract entered lato by the Company. However, your goodielf has alised to refer the clarification letter Issued by HSBC Bank . Authorised Dealer bank of the Company dated th November 2010 le the said submission wherein the authorities have categorically specified that the activities of the PO would be limited to the following: . Copy of the letter tazied by the AD tanke la risencloud and marked as Amexune z. On perusal of the rampe, yoor poodiett would note that the permitted erthicles elbinded to PO ts limited to supercon services dety and supply of Onien ii dodnes ts vot portidroite by PO, The Annuel Activity Certificate ('AKC") duty diened by the Ratistory Auditors of the Company Cind wittli the RBL, whecela the work ondertaken by PO during the pelle etso confiris the same. Copy of the AAC submitted for the Financial You: 2020-21 & coclosed sind erdad as Annexure 3; Your goodreff please note du this AAC filed is also reviewed and verified by the fost. Further, your goodself took appreciate th....
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....h design services is Income of Project Office would be tantamount to rejection of books of accounts of the Project Office doty modited by Independent Statutory Auditors of the Company. c) Befattet of the J Contention - Art Your goodsell In the Impugned show-cnuje notice fins argued that the Company luis tried to artifictelly spuit the contract into off-shore and anshore activities to leverage the benefit of tax differenttet treatment of Royalty and Business Incoes under the provisions of the Act and Indie-katy DTAA. In this connection, please note that the contracts are not artificially sock by the Company and there Is a clear demarcation of the reven9:04 erated from sale of designs and supervisory activities. The Document 24 ANBCD0695E- DANIELI AND C OFFICINE MECCANICHE S P A AY. 2021-22 ITBA/AST/S/143(3)/2024-25/1070190520(1) DANIEL price schedule for design and drinings for some the contracts evidencing the same are reproduced below ;. Document 25 AAECDOORSE- DANIELI AND C OFFICINE MECCANICHE S P A A.Y. 2021-22 ITBA/AST/S/143(3)/2024-05/1070190520(1) DANIELI acture of the contract, but the same should not be construed keeping In view the taxing provi....
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....he cultchart, The line supplied from duedide india and the nico the Incase trom dedigs and doornes que it and theci li no tink with on peruk of the above, your goodsett vores rt notre tê destens and have been camied an Irs Inidla and the Project offlow of pre tins no role In such Appordinety, their income should not be spibuted to che PE grid board (yois on gross baths. In addition to the above end waha contention that the Income from del PE then your goodtelfw to give credit to the expenses Incurred ty che sic Incorde Tive Act Is loix on ant basis and hok on gross bach. The audited nevincsat cat only considered the Income and expenses aimed frogs lopend Ser which are permitted RSL We request your goodself to take th contracts the contract Is only such and would that outtide designs the PO of devices activities. per the prepared by the be with rod Bry additional detalu/ clarifications that your goodsall may niquine imgird. Thanking You Project Office - Blew De Project Office Manager [Encl. as above) Document 26 AABCOS69SE- DANIELI AND C OFFICINE MECCANICHE S P AY. 2021-22 ITBA/AS7/5/143(3)/2024-25/....
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....2008-2000 dated 27 March 2000 for Engineering & Supply of a Structural Mill at Visakhapatnam Steel Plant. Contract completion date: 30 November 2010 as per the extension of time approval letter dated 05.08.2010 issued by Kashtriya Ispat Nigam Ltd. Please note that this approval has been granted subject to the following conditions: 1. The operation of the office in India will be restricted exclusively to execution of the contracts as awarded by the above mentioned Indian compa Il. The office in India, shall not enter into any new contracts other than the above mentioned four contracts nor shall it engage Itself in any activity of a trading, commercial or industriel nature other than what may be necessary for the execution of the aforesaid contract, without prior permission of the Reserve Bank of India Ill. The office in India will meet all the lis expenses in India only from out of the inward remittances received from head office through normal banking channels or the rupee amounts to be received under the contract IV. The office in India shall not borrow of Jean any money from/to any person in India without prior permission of the AD bank (HSBC)/Reserve Bank of In....
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....ufacture product is speciled in the Contract, and The Contractor has obtained clanfications on technical and commercial aspects. wpected the she and surroursting's of Facilities and has examined and considered af other matters, ceelins and things, probable contingencies and generally ali matters. accidental Werte and anotary thereof, affecting the execution and completion of the Facilities, and The Contractor has agreed to undertake design & engineering, civil engineering won structures & equipaset, labinontion & supędy of steel structures, moradachute & sugydy el hiurance &handing erection work tostnig. A estut fiterient el performance guarantee parameters of Bio Fachbes Per DANCLI & C. OFFICINE MECCAN CHE SPR The Contract says that the Indian company has decided to set-up installation of a production complex (Facilties) at Nagarnar, Chattisgarh, for which the assessee will act as the Contractor to execute the award. At point (c) on Page 2 of the contract, it is clearly written that the Contractor is in a position to disclose impart, deliver and transfer the requisite engineering data, drawings and documents of those items which are in the scope of the ....
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....rcial or scientific experience . 4. The term "fees for technical services" as used in this Article means payments of any amount to any person other than payments to an employee of the person making payments, in consideration for the services of a managerial, technical or consultancy nature, including the provisions of services of technical or other personnel. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such a case, the royalties or fees for technical services shall be taxable in that other Contracting State according to its Document 31 AABCD9625E- DANIELI AND C OFFICINE MECCANICHE S P A A.Y. 2021-22 (TBA/AST....
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....7 in clause 2.3.1. has mentioned the payment schedule wherein 77.5% of the specified price shall be released as per submission & approval of design and engineering in accordance with billing schedule. Thus, these are composite contracts. Thus, the composite contract involving inextricably linked components of "engineering of the facilities and for erection, start-up and commissioning" which need to be considered together for determining taxability of the same. 1. It is noteworthy, that the instant case is distinguishable from the Supreme Court judgement, dated 4.1.2007, in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT [2007] 288 ITR 408 (S.C.): 207 CTR 361(S.C.). Herein the assessee has a Document 32 AABCISSPSE- DANIELI AND C OFFICINE MECCANICHE SA A.Y. 2021-2 ITBAIAST/5/142(3)/2024-25/1070190520(1) territorial nexus with India. The Assessee has significant presence through its Project Office and has been awarded multiple contracts. As per the audited financials there were 16 projects as on 31.03.2021. The work is technical and specialised and the nature of contracts is on turnkey basis. These contracts involve Engineering, Procurement and Commission....
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....fixed place of profession situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed place of profession, as the case may be, shall be computed under the head "Profits and gains of business or profession" in accordance with the provisions of this Act : Provided that no deduction shall be allowed,- 1. in respect of any expenditure or allowance which is not wholly and exclusively incurred for the business of such permanent establishment or fixed place of profession in India; or 2. (ii) in respect of amounts wany, pali somierwise tháºn towards reimbursement of actual expenses) by the permanent establistugent to its heti office or to any of its other offices: Provided further that the provinans of section 44BB shut not apply in respect of the income referred to inthis sectiontony geht 1 ging o camilany) reign company shall keep and maintain (2) Every non-vitaldent hal/920g books of account and other 66De pts in accordanceet une provisions contained in section 44AA and get his account sudire.% DE PA Sunlent as defined in the Explanat....
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....O in this regard" 3. AO has erred in taxing the income from supply of designs and drawings at the rate of 40% on gross basis without giving deduction of admissible expenses to verify expenses shown against the income and "Panel finds merit in contention of the assesse. Without making further enquiries with the assesse, AO is directed calculate tax on net basis" Wrongful proposition for levy of |penalty "This ground of objection is related to initiation of penalty proceeding u/s 270A of the Act. This ground is consequential in nature and hence rejected being (premature at this stage." Rate of taxation on income from Designs and Drawings "Panel has perused rival contentions. AO has dealt with this issue elaborately in the draft order. Panel does not find any infirmity with order of the AO in this regard" AO has erred in taxing the income from supply of designs and drawings at the rate of 40% on gross basis without giving deduction of admissible expenses to verify expenses shown against the income and "Panel finds merit in contention of the assesse. Without making further enquiries with the assesse, AO is directed calculate tax on net basis" Documen....
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....¡ INCOME TAX DEPARTMENT 8 RONIT CHAKRABORTY CIRCLE 1(1), IT, KOLKATA Copy to: Assessee RONIT CHAKRABORTY CIRCLE 1(1), IT, KOLKATA (in case the document is dighaly signed please meter Digital Signature of the bottom of the page Document 37 रतसरकार, वितà¥à¤¤à¤®à¤‚तà¥à¤°à¤¾à¤²à¤¯ आयकर आयà¥à¤•à¥à¤¤à¤•à¤¾à¤•à¤¾à¤°à¥à¤¯à¤¾à¤²à¤¯ (अंतरà¥à¤°à¤¾à¤·à¥à¤Ÿà¥à¤°à¥€à¤¯à¤•à¤°à¤¾à¤§à¤¾à¤¨à¤à¤µà¤‚अंतरणमूलà¥à¤¯à¤¾à¤‚कन) आयकरà¤à¤µà¤¨ (पूरà¥à¤µà¤¾), 110 - शांतिपलà¥à¤²à¥€, कोलकाता-700107 Government of India, Ministry of Finance Office of the Commissioner of Income Tax (International Taxation & Transfer Pricing) Aayakar Bhawan (Poorva), 110 - Shanti Pally, Kolkata-700107 Email: [email protected] Tele- Fax: ....
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.... signed/validated? Reply: The copy of the order dated 30/10/2024 that was delivered to the assessee was sent through a covering letter that was signed digitally. Further as per section 282A(2) of the Income Tax Act, 1961 and rule 127A of the income Tax Rules, 1962 which are discussed as under: Section 282A(2) provides that if the name and office of the designated income-tax authority are printed, stamped or otherwise written on any notice or document by any income-tax authority, the same shall be deemed to be authenticated. Additionally, under rule 127A, if the name and office of the income-tax authority are printed in the body of the e-mail or an attachment accompanying the transmission of a notice or other document or if it is displayed as part of an electronic record or on an attachment to an electronic record, it will be considered authenticated. Hence, the communication is valid if it bears the name and designation of the authority and sent as an attachment through the official mail ID of the designated officer. In the instant case the communication along with the order was sent from the official e-mail of the assessing officer at 5.52.17PM of 30/10/2024 and was de....