SERCEL SA ,DEHRADUN vs. DCIT, CIRCLE-2, DDN, DEHRADUN

ITA 59/DDN/2023Status: DisposedITAT Dehradun13 March 2026AY 2020-21Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the contract was for the supply of equipment manufactured outside India, not for services. The duration of the contract alone is not sufficient to establish a PE in India. Therefore, the receipts are not taxable in India.

What were the facts?

The assessee, a French company, supplied seismic equipment to ONGC and claimed the receipts as exempt. The AO, however, treated the income as taxable in India by establishing a Permanent Establishment (PE) based on the contract duration.

What were the issues?

Whether the supply of equipment manufactured outside India, with installation and commissioning, creates a Permanent Establishment (PE) in India, and if the income is taxable in India.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 142(1),Section 195,Section 9(1)(i),Section 44BB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘DB’: NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN

For Appellant: Shri Sanjay Agarwal, CA &
Hearing: 14/01/2026Pronounced: 13/03/2026

PER S. RIFAUR RAHMAN, AM

1.

This appeal has been filed by the assessee against the final assessment order dated 15.06.2023 passed u/s 143(3) r.w.s.144C(13) of the Income Tax Act, 1961 (hereina"er called ‘the Act’) subsequent to the direc"ons of the Ld.

1 Dispute Resolu"on Panel (DRP)/TPO vide order dated 25.05.2023 for Assessment Year 2020-21. 2. The brief facts of the case are, during the assessment proceedings, the Assessing Officer (‘AO’) noticed that the assessee has claimed refund of Rs. 59,79,820/- against TDS amounting to Rs. 59,79,820/-. Such TDS was deducted by Oil and Natural Gas Corporation Limited (ONGS) u/s 195 of the Act, in it’s ITR. The

The order continues below.

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