TaxTMI 
TaxTMI 
2025 (11) TMI 741
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.... of the Act, bad in law and liable to be quashed. 2. On the facts and circumstances of the case and in law, the Ld. AO has erred in determining the income of the Appellant at INR 5,64,11,704 as against Nil income reported in the Return of income ('ROI') filed by the Appellant for the subject year. 3. On the facts and circumstances of the case and in law, the Assessment Order passed by Ld. AO is illegal, bad in law, passed in undue haste with preconceived mindset and violative of principles of natural justice. The findings of Ld.AO in the Assessment Order are based on mere conjecture, surmises and contrary to the material furnished on record. 4. On the facts and circumstances of the case and in law, both the Ld. AO and Hon'ble Dispute Resolution Panel - 2 ('Hon'ble DRP') erred in holding that the Appellant did not file reply to show cause notice issued by the Ld.AO without appreciating that the Appellant had duly filed its response on 29.03.2024 to the show cause notice issued by the Ld. AO. 5. On the facts and circumstance of the case and in law, the Ld. AO, in the Assessment Order, has erred in holding that the Appellant has a Permanent ....
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....e assessee entered into agreement with Vedanta for supply of manpower, the said agreement is at page 223 to 283 of the paper book. The Assessing Officer (AO) without appreciating facts of the case and submissions of the assessee while passing the draft assessment order held the receipts on account of supply of manpower as 'Income from Other Sources' and made addition of the entire receipts i.e. Rs. 62,56,46,817/-. Thereafter, the assessee filed objection before the Dispute Resolution Panel (DRP) highlighting that the draft Assessment Order was passed without providing adequate opportunity to the assessee. Nevertheless, on merits as well the assessee made submissions explaining the role and scope of work of the assessee to be carried out. The ld. Counsel asserted that the role of the assessee is limited to identification of Indian technical experts who have requisite experience only. The assessee is not involved in supervising or controlling the work undertaken by such experts. The experts are not employees of the assessee and are providing the services to Indian customers as independent technical experts and not in the capacity of employees of the assessee. The company does not hav....
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....ssessee is also providing equipment. He thus, prayed for upholding the impugned order. 5. Both sides heard, orders of the authorities below examined, the tender document and agreement placed in paper book and the decision on which the ld. Counsel for the assessee has placed reliance consider. 6. The first issue in appeal is, whether the assessee is simplicitor providing manpower to the Indian companies or the assessee is performing some more functions after providing CVs to the companies. Here it would be imperative to refer to the tender document in response to which the assessee has been allotted the contract for supply of manpower and also the Terms and Conditions of the agreement. A perusal of General Instructions to the bidders mentioned in the Tender document reveals that it is not only that the bidder has to provide CV's but the service provider is also required to manage Contracts and Payrolls of professional and support staff provided by the company. Further, the tender binds the contractor to establish and maintain statutory documents as required by Labour Laws and as per company requirement to meet the statutory compliances. Further, it was incumbent upon the contr....
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....on of the Contract be responsible for the safety of the Contractors Personnel and agrees that the Contractor's Personnel. Whilst on the Sale, shall attend and conduct safety drills as may be directed by or on behalf of, the Company. 8.4.2 The Contractor shall hold regular meetings with the Contractor's Personnel to instruct and up-date them regarding compliance with the requirements of this Clause 8 (Health, Safety and Environment) and shall provide evidence of this to the Company on request. The Contractor shall at all times provide appropriate and adequate personal protective equipment and safety equipment to the Contractor's Personnel. 8.4.3. The Contractor shall have proper arrangements in place for the effective supervision of the execution of the Services by the Contractor's Personnel so as to ensure safe and proper execution of the Services Where the Services are being performed at an offshore location, the Contractor shall ensure that those members of the Contractor's Personnel working offshore have undergone sea survival training. 8.5 Contractor's Policy The Contractor will supply to the Company a copy of the Cont....
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....nd Environment), the Company shall be entitled in the event of any emergency (including, without limitation, in the event of a well blowing out, catching fire or otherwise getting beyond control), with immediate effect, to direct the Contractors Personnel as it considers fit and to use as it considers fit all or part of the Contractor's Equipment. 8.9. Reporting 8.9.1 The Contractor shall immediately inform the Company in writing when an incident or accident occurs (including, without limitation, any fatality, lost time incident, medical treatment case, first aid case near miss or any other toss related incident in any way connected with the Services, whether or not it may affect any operations of the Company or the operations of others working on behalf of the Company, and shall maintain accurate records therefore Any fatality or major accident or incident shall be reported to the Company within 24 hours of occurrence. The Contractor shall also submit a monthly report in respect of all incidents or accidents in anyway connected with the Services detailing, without limitation, the nature of such incident or accident, the extent of last time, the reasons for th....
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....arty. 9.4 Bases 9.4.1 The Company will maintain an office base in India for the purposes of the Contract. 9.4.2 Unless otherwise agreed in writing by the Company, the Contractor will maintain both an office base in India and an operational base at the Site sufficient to manage the Services for the purposes of the Contract." 8. The above Terms and Conditions clearly indicate that as per agreement the scope of work is not limited to forwarding of CV's of the experts but the assessee is also required to perform various other functions including supervision, statutory compliances and to ensure safety of the employees which are hired through the contractor. The ld. Counsel for the assessee during his submissions has referred to same very agreement and pointing to Clause 5 has submitted that the company reserves the right to reject any member of contractor's personnel prior to commencement of service and has right to remove from service after commencement. The covenants of the agreement cannot be read selectively. The agreement has to be read and accepted as whole and not in piecemeal. 9. The next question is taxability of receipts in lieu of services ....