BAKER HUGHES ENERGY TECHNOLOGY UK LIMITED,ABERDEEN, UNITED KINGDOM vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 1(1)(2), INTERNATIONAL TAX, DELHI, DELHI

ITA 2081/DEL/2025Status: DisposedITAT Delhi27 May 2026AY 2022-2310 pages
AI SummaryAllowed

What were the facts?

The assessee, a UK-based company, entered into a contract with ONGC for offshore supply of goods. The Assessing Officer (AO) determined the assessee had a fixed place PE and a deemed PE in India, taxing a portion of the supply of goods under Section 44BB. The assessee appealed this assessment.

What did the Tribunal hold?

The Tribunal held that the Revenue failed to establish the existence of a Permanent Establishment (PE) in India. Following a co-ordinate bench's decision for an earlier assessment year with identical facts, the Tribunal deleted the addition made under Section 44BB.

What were the issues?

The key issues were the existence of a Permanent Establishment (PE) in India for the assessee and the applicability of Section 44BB for taxing offshore supply of goods.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C,Section 44BB,Section 234B,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: Sh. Vikas Awasthy & Smt. Renu Jauhri

For Appellant: CA &, Ms. Supriya Mehta, CA
Hearing: 25.03.2026Pronounced: 27.05.2026

Per Renu Jauhri, Accountant Member:

The above captioned appeal is preferred by the assessee against the Assessment Order passed u/s 143(3) r.w.s. 144C of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) dated 16.01.2025 for A.Y. 2022-23. 2. The assessee has raised the following grounds of appeal:

Tenability of the impugned Final Assessment Order “1. On the facts and circumstances of the case & in law, the final assessment order under section 143(3) r.w.s. 1440(13) of the Income-tax Act, 1961 (“the Act”) dated 16 January 2025 (‘Final Assessment order’) passed by the Learned Assessi

The order continues below.

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