Survey Report On Existence Of 'Permanent Establishment' In Tax Year Not Relevant For Previous/Future AYs: Delhi HC Grants Relief To Swiss Co
2 weeks, 1 day ago

Survey Report On Existence Of 'Permanent Establishment' In Tax Year Not Relevant For Previous/Future AYs: Delhi HC Grants Relief To Swiss Co

Live Law  

The Delhi High Court has held that the existence of a foreign entity's Permanent Establishment in India is required to be determined in law for each year separately on the basis of the scope, extent, nature and duration of activities in each year. A division bench of Justices Yashwant Varma and Ravinder Dudeja made the observation while dealing with a Swiss company's case, which was aggrieved by various reassessment notices issued for AYs 2013-18 for alleged escapement of income generated by its alleged PE, namely, GE T&D India Ltd. While allowing the company's plea against such action, the High Court heavily relied on a coordinate bench decision in Grid Solutions OY v. Assistant Commissioner Of Income Tax International Taxation & Anr. Similarly in Dwarkadas Kesardeo Morarka v Commissioner of Income Tax, Central the Supreme Court had held that in the matter of assessment of income tax, each year's assessment is complete and the decision arrived at in a previous year on materials before the taxing authorities cannot be regarded as binding in the assessment for the subsequent years. with Mr. Aditya Vohra and Mr. Shashvat Dhamija, Advs for Petitioner; Mr. Ruchir Bhatia, SSC, Mr. Anant Mann, JSC and Ms. Aditi Sabharwa, Adv for Respondent Case title: GE Grid GMBH v. Assistant Commissioner Of Income Tax & Anr.

India Tax Court Assessment Income Tax Swiss Each Year Permanent Establishment  tax  ao  previousfuture  mr  swiss  relevant  income  pe  high  survey  permanent  hc  relief  v  report  court  assessment  grants

History of this topic

Whether Entity Is 'Permanent Establishment' Is A Fact-Specific Issue, Must Be Examined Separately For Different Tax Periods: Delhi High Court
2 months ago

Whether Entity Is 'Permanent Establishment' Is A Fact-Specific Issue, Must Be Examined Separately For Different Tax Periods: Delhi High Court

Live Law  

The Delhi High Court has held that whether an entity is a Permanent Establishment of a foreign company or not is a “fact-specific” issue which must be examined separately for different tax periods. A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar observed, “The position of a PE being a facts-specific issue and thus liable to be examined …

SC's Judgement In Abhisar Buildwell Case Doesn't Permit Reopening Of Assessments Beyond Limitation Period U/S 149(1) Of IT Act: Delhi HC
3 months ago

SC's Judgement In Abhisar Buildwell Case Doesn't Permit Reopening Of Assessments Beyond Limitation Period U/S 149(1) Of IT Act: Delhi HC

Live Law  

The Delhi High Court has reiterated that the Supreme Court's judgment in Abhisar Buildwell does not permit reopening of assessments under Section 147/148 of the Income Tax Act, 1961 beyond the period stipulated under Section 149. It relied on Principal Commissioner of Income Tax, Central-3 v. Abhisar Buildwell Private Limited to contend that in cases where the proceedings under Section …

Tax Weekly Round-Up: December 09 - December 15, 2024
3 months ago

Tax Weekly Round-Up: December 09 - December 15, 2024

Live Law  

HIGH COURTS Allahabad HC Assesee Cannot File For Requisite Documents Once Plea Is Accepted And Notice Is Issued: Allahabad High Court Case Title: M/s Laxmi Telecom v. State of U.P. Form 26B Under Income Tax Rules Not Required For Refund Once Form 5 Under 'Vivad Se Vishwas' Act Is Issued: Allahabad High Court Case Title: Dish TV India Limited v. …

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC
Trending News
3 months, 1 week ago

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC

Live Law  

The Delhi High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, an Assessee is entitled to confine the settlement of disputes which were subject matter of its appeal, and exclude the disputes which were subject matter of the Revenue's appeal for the same assessment year. It thus allowed a real estate company's plea against the …

AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court
7 months, 2 weeks ago

AO Can't Disregard ITAT's Direction To Re-examine Issue By Referring To CBDT Circular: Delhi High Court

Live Law  

The Delhi High Court has held that the assessing officer cannot disregard the direction of the Income Tax Appellate Tribunal to re-examine the issue by referring to the circular issued by the Central Board of Direct Taxes.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that since the additional grounds had come to be accepted by the …

Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings
9 months, 2 weeks ago

Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings

Live Law  

The Delhi High Court, while quashing the reassessment proceedings initiated by the income tax department against the Caterpillar Group, held that once the issue of arm's length remuneration was settled by the Transfer Pricing Officer, the question of ascertaining the existence of a permanent establishment was academic.The bench of Justice Yashwant Varma and Justice Purushaindra. The Delhi High Court, while …

Direct Tax Cases Quarterly Digest 2024
11 months, 1 week ago

Direct Tax Cases Quarterly Digest 2024

Live Law  

Supreme Court Case Title: Herbicides India Limited vs ACIT 2024 LiveLaw 44 While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits. AO Lacks Jurisdiction To Pass Draft Assessment Order …

Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT
1 year, 9 months ago

Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that the provisions of Section 44BB of the Income Tax Act are not applicable in the absence of a permanent establishment.The bench of Kul Bharat and Shamim Yahya has observed that the burden of proving the existence of PE lies on the department, which has not been discharged. The …

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court
2 years, 7 months ago

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court

Live Law  

The Delhi High Court has ruled that the Explanation to Section 14A of the Income Tax Act, 1961, added vide the Finance Act, 2022, cannot be presumed to be retrospective in nature since it is clarificatory in nature and alters the law as it stood earlier. The revenue department submitted before the High Court that the ITAT had relied on …

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT
3 years ago

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

Live Law  

The Delhi Bench of ITAT, consisting of members N.K. The Assessing Officer held that during the relevant assessment years, FCC Rico Ltd.'s premises in India served as a branch and office of the Assessee and therefore the Assessee had a business connection in India under section 9 of the Income Tax Act, 1961 and a Fixed Place in India under …

Discover Related