{"id":62163,"date":"2026-07-18T15:25:42","date_gmt":"2026-07-18T09:55:42","guid":{"rendered":"https:\/\/itatonline.org\/digest\/bently-nevada-llc-v-acit-it-2025-132-itr-260-delhi-trib\/"},"modified":"2026-07-18T15:25:42","modified_gmt":"2026-07-18T09:55:42","slug":"bently-nevada-llc-v-acit-it-2025-132-itr-260-delhi-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/bently-nevada-llc-v-acit-it-2025-132-itr-260-delhi-trib\/","title":{"rendered":"Bently Nevada LLC v. ACIT (IT) (2025) 132 ITR 260 (Delhi) (Trib.)"},"content":{"rendered":"<p class=\"font-claude-response-body\" style=\"margin: 0in;margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: &#039;Verdana&#039;,sans-serif\">The assessee, a US-based company having a liaison office in India earlier treated as a permanent establishment for AY 2001-02 to 2006-07, contended for AY 2017-18 to 2020-21 that it had closed its liaison office and stopped sending expatriate employees to India, furnishing Form 49C under section 285, Form 52 filed with the ROC and notes to financial statements in support, yet AO, following earlier findings, continued to treat it as having a permanent establishment and taxed attributable profits, which was affirmed by the DRP; separately, AO treated receipts from sale of software as royalty despite DRP directions to verify if the software was embedded in hardware. On appeal, the Tribunal held that once the assessee had placed material evidencing closure of the liaison office and absence of expatriate employees, the onus shifted to the Revenue to rebut the same, and since AO, despite being granted a remand opportunity, failed to bring any material to show continued existence of a permanent establishment or dependent agent permanent establishment, the assessee could not be held to have any permanent establishment in India during the relevant years, and consequently no profits could be attributed to it in India; it further held that since the facts regarding software embedded in hardware were identical to earlier years where the addition on account of royalty was deleted following the <i>Supreme Court\u2019s ruling in Engineering Analysis Centre of Excellence P. Ltd. v. CIT<\/i>, there was no reason to take a different view, and the royalty addition was deleted.(AY. 2017-18to 2020-21) <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-resident-Permanent establishment-Liaison office treated as permanent establishment in earlier years-Assessee closing liaison office, no expatriate employees, evidence produced-Burden shifting on Revenue to rebut-No material brought by Department despite remand opportunity-No permanent establishment in India-No profits attributable-Royalty-Supply of software embedded in hardware-Facts same as earlier years where addition deleted following Engineering Analysis Centre of Excellence (SC)-Royalty not taxable-DTAA-India-USA [[S. 9(1)(vii) 144C  art.5,  12]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62163","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gaD","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62163"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62163\/revisions"}],"predecessor-version":[{"id":62164,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62163\/revisions\/62164"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}