{"id":62936,"date":"2026-07-30T16:06:20","date_gmt":"2026-07-30T10:36:20","guid":{"rendered":"https:\/\/itatonline.org\/digest\/uk-grid-solution-ltd-v-dy-cit-it-2025-131-itr-147-delhitrib\/"},"modified":"2026-07-30T16:06:20","modified_gmt":"2026-07-30T10:36:20","slug":"uk-grid-solution-ltd-v-dy-cit-it-2025-131-itr-147-delhitrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/uk-grid-solution-ltd-v-dy-cit-it-2025-131-itr-147-delhitrib\/","title":{"rendered":"UK Grid Solution Ltd. v. Dy. CIT (IT) (2025) 131 ITR 147 (Delhi)(Trib.)"},"content":{"rendered":"<p 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 AO treated receipts from offshore supplies under a turnkey project as taxable in India by alleging existence of Permanent Establishment (PE), artificial splitting of contracts and applicability of section 44BBB. Global operation fees were also taxed as Fees for Technical Services. The Tribunal held that section 44BBB presupposes activities like construction, erection, testing or commissioning in India and is inapplicable where the income arises from offshore supply and title to goods passed outside India. Since the existence of a PE was not established and the receipts arose from offshore supplies, section 44BBB could not be invoked. The Tribunal held that the contracts were independent arrangements and offshore supplies completed outside India were not taxable in India. Revenue failed to establish the existence of Dependent Agent PE or Construction PE, and therefore attribution of profits was not sustainable. Global operation fees were also held not taxable as the \u201cmake available\u201d condition under the India-UK DTAA was not satisfied. Accordingly, additions were deleted, and the appeal of the assessee was allowed. (AY. 2009-10) <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Dependent Agent Permanent Establishment-Construction Permanent Establishment-Offshore supply-Attribution of profits-Artificial splitting of contracts-Fees for Technical Services-\u201cMake available\u201d clause-Additions were deleted-DTAA-India-UK.[S.44BB,90,  Art. 5, 13(4)(c)]<\/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-62936","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gn6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62936","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=62936"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62936\/revisions"}],"predecessor-version":[{"id":62937,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62936\/revisions\/62937"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}