Assessee had entered into various contracts with Indian clients for supply and delivery of equipment and supervision, installation, erection and commissioning activity. Assessee did not involve in any installation activity. Installation, erection and commissioning of projects was handled by wholly owned subsidiary of Germany company-Assessing Officer was of view that turnkey contract was a single composite contract between assessee and clients in India, thus he made an addition towards income attributable to Indian PE from said contracts and taxed same in hands of assessee-Whether in view of decision of Tribunal in assessee’s own case for subsequent assessment years, contracts entered into by assessee with Indian clients was single composite contract and income arising therefrom was to be assessed in hands of the assessee, because project office of assessee constituted a PE in India. Further since assessee had failed to provide necessary information to justify that there was an error in computation of profit attribution to PE in India and there was duplication of income in respect of service contract revenue, matter is remanded to Assessing Officer for limited purpose of computation of income (AY. 2009-10, 2011-12)
Durr Systems GmbH. v. DCIT IT (2024) 204 ITD 258 (Chennai) (Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Supply and delivery of equipment and supervision, installation, erection and commissioning activity-Single composite contract-Assessee had PE in India-Income attributable to Indian PE from said contracts is taxable in India-Matter remanded to the file of the AO for computation-DTAA-India-Germany. [Art. 5, 7]
Leave a Reply