Dismissing the appeal of the Revenue the Court held that, the involvement of the assessee in the project which was under execution is not in doubt. The DMRC had availed the engineering services rendered by the employees of the head office. The assessee only remitted the engineering fee to the head office. There is no dispute with regard to the fact that the debit note provided sufficient information not only concerning the names of the employees but also as to the nature of duties and number of hours that they spent on the job assigned to them. The Tribunal being the final fact-finding authority, hence no interference was called for, especially when revenue had not proposed any question which was indicative of the fact that any of the findings returned by the Tribunal was perverse. Therefore Disallowance was correctly deleted. (AY. 2005-06)
CIT (IT) v. Cobra Instalaciones Y Servicios S.A. (2024) 296 Taxman 287 (Delhi)(HC)
S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Business profits-Disallowed engineering fees on the ground that time log sheets were not filed, debit notes furnished provided sufficient information as to nature of duties and number of hours spent-Order of Tribunal deleting the disallowance is affirmed-Article 7 of OECD Model Convention. [S. 260A]