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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. SUDHANSHU SRIVASTAVA
This appeal filed by the revenue is preferred against the order of the CIT(A)-43, New Delhi dated 06.06.2017 for A.Y. 2011-12.
The grievance of the revenue read as under :-
Briefly stated the facts of the case are that the assessee is a company incorporated and existing under the laws of UAE and also a tax resident there. The principal activities of assessee include fabrication and installation of onshore and offshore platforms and submarine pipelines and pipelines coating. The assessee has also entered into contracts with ONGC for the aforesaid purposes. As per the terms of the contract, NPCC has carried out sequential activities such as design and engineering, material procurement, fabrication and installation.
While framing the assessment order u/s. 143 (3) / 144 C of the Act the AO observed as under :-
It can be seen from the above that the AO has followed the findings given in A.Y.2007-08 and 2008-09 and completed the assessment by making adjustment of Rs. 32.52 crores.
The assessee assailed the assessment before the CIT(A) and the CIT(A) found that the issue is covered in favour of the assessee by the order of the Hon’ble High court of Delhi for A.Y.2007-08 and 2008-09. The following substantial question of law were framed and answered by the Hon’ble High Court of Delhi :-
1) Whether the Income Tax Appellate Tribunal has not attributed and determined the taxable income under installation and commissioning; whether the said issue/ question has remained undecided and the effect thereof.
2) Whether the order of the I ncome Tax Appellate Tribunal violates and is contrary to Article 7 (6) of the Double Taxation Avoidance Agreement between India and UAE.
And the Hon’ble High Court adjudicated the quarrel as under :-
Reasoning and Conclusion
As no distinguishing decision has been brought to our notice, respectfully following the binding decision of the Hon’ble High Court of Delhi (supra) we decline to interfere.
In the result, the appeal filed by the revenue is dismissed.
Decision announced in the open court in the presence of both the representatives on 01.07.2021.