2024 (5) TMI 1663

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....n ITAT 's order quashing revision order passed u/s 263 without going into merits of the case ." 3. Vetco Gray Pte. Ltd. (VGPL) is a company incorporated in, and a tax resident of Singapore. During the year under consideration, it was engaged in the business of offshore supply of equipment rendering of services and supply of plant and machinery on the hire basis, to be used in prospecting for, or extraction or production of mineral oil. 4. VGPL had filed ITR on October 31, 2017, therein declaring total income Rs. 1,37,85,751/- as per the provisions of section 44BB of the Income tax Act, 1961 . 5. The details of income earned during the FY 2016-17 are as under: Nature of Income Amount (USD /GBP) Amount ( INR) I Taxability....

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.... (i.e. 1% of the gross receipts) was attributable to the activity of sale assumed to be carried out in India and the balance for the offshore functions . Accordingly, 1% profit from offshore supply of equipment was held to be taxable in India as income attributable to PE in India. ● that the income from services and rentals, was acceptable and assessed the same at 10% in line with section 44BB of the Act. 7. The Appellant had neither filed an appeal before Commissioner of Income-tax (Appeals) nor filed any objections before the Dispute Resolution Panel ('DRP') and accepted the decision of the Assessing Officer . 8. Later, the ld. Commissioner of Income-tax (International-Tax), Delhi-3 issued the notice dated January 14,....

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....cope of section 44BB Accordingly, Rental of Equipment shall be either taxed as Royalty under section 9(1)(vi)/115A or 44DA of the Act, depending on its PE in India or not, and taxed the income from rental of equipment as royalty taxable under section 44DA of the Act taking the attribution of 25% instead of 4% tax rate made by the AO in the original order. 9. The assessee has filed an appeal before Income-tax Appellate Tribunal against the order of Ld. CIT passed under section 263 of the Act. 10. The Assessee has filed an appeal before the ITAT Delhi against the revisionary order passed by the CIT under section 263 of the Act. The Co-ordinate Bench of ITAT has disposed the matter by passing an order dated December 20,2022, holding as u....