COMPUTER MODELLING GROUP LIMITED,CANADA vs. DCIT CIRCLE INTERNATIONAL TAXATION 1(2)(1), NEW DELHI

ITA 2090/DEL/2023Status: DisposedITAT Delhi03 May 2024AY 2012-13Bench: SHRI G.S. PANNU, HON'BLE (Vice President), MS. ASTHA CHANDRA (Judicial Member)20 pages
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What did the Tribunal hold?

The Tribunal held that the assessee's receipts were business income and not taxable in India as the assessee did not have a Permanent Establishment (PE) in India. Consequently, the levy of interest under Section 234B was also found to be not leviable.

What were the facts?

The assessee, a non-resident company, appealed against assessment orders taxing its receipts. The core issue revolved around whether these receipts, primarily from software licenses and services, were taxable in India given the absence of a Permanent Establishment (PE) and the provisions of the India-Canada Double Taxation Avoidance Agreement (DTAA).

What were the issues?

The primary issues were whether the assessee's receipts constituted taxable income in India under the Income Tax Act and the India-Canada DTAA, and whether interest under Section 234B was leviable on a non-resident.

Which sections of the Income-tax Act were involved?

Section 44BB,Section 143(3),Section 144C,Section 250,Section 234B,Section 271(1)(c),Section 270A,Section 244A

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Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI

Before: SHRI G.S. PANNU, HON’BLE & MS. ASTHA CHANDRA

For Appellant: Shri Manuj Sabharwal, Adv
For Respondent: Shri Vizay B. Vasanta, CIT-DR
Hearing: 14.03.2024Pronounced: 03.05.2024

Heard together (4 matters)

ITA No. 2090/Del/2023
ITA No. 2305/Del/2022
ITA No. 2091/Del/2023
ITA No. 3102/Del/2023

Read from the judgment's own cause title. This page is filed under one of them.

PER ASTHA CHANDRA, JUDICIAL MEMBER

These four appeals have been filed by the assessee. The appeal in ITA No. 2090/Del/2023 is directed against the order of the Ld. Commissioner of Income-Tax (Appeals), Delhi- 42 (“CIT(A)”) pertaining to assessment year (“AY”) 2012-13. The remaining three appeals in ITA Nos. 2305/Del/2022, ITA No. 2091/Del/2023 and ITA No. 3102/Del/2023 are directed against the assessment order(s) dated 28.07.2022, 26.05.2023 and 12.09.2023 passed by the ACIT, Circle Int. Taxation-1(2)(1), under section 143(3) read with s

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