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Income Tax Appellate Tribunal, DELHI BENCHES : C : NEW DELHI
Before: SHRI R.S. SYAL & MS SUCHITRA KAMBLE
ORDER PER BENCH: These 138 appeals by different but connected assesses of GE group relate to the assessment years 2001-02 to 2008-09.
In all, following four issues have been raised in these appeals : -
i. Challenge to reassessment ii. Permanent establishment iii. Attribution of income iv. Interest u/s 234B.
While some of the appeals do not involve the issue of reassessment,
but the other three issues are common to all.
In fact, there were 139 appeals by the GE group overseas entities
before the Bench. The group chose GE Energy Parts Inc. vs. ADIT (ITA No.671/Del/2011- Assessment Year : 2001-02) as the lead case. Extensive arguments were made by both the sides in the case of GE 9
(GE Energy Parts Inc. vs. ADIT) & 137 appeals of GE Group companies Energy Parts (supra) and it was candidly admitted that the remaining appeals involve mutatis mutandis similar issues. The arguments so made in the lead case were adopted by both the sides by submitting that the decision taken in the lead case on all the four issues will apply, to the relevant extent, to these 138 appeals.
We have passed a separate order in the lead case today and our
decision on the four issues is that :- i. Initiation of reassessment is valid. ii. Fixed place as well Agency Permanent establishment of all the GE overseas is established in India. iii. Attribution of income to the PE should be 2.6% of the sales made by GE overseaes entities in India. iv. Interest u/s 234B is not chargeable.
As the facts and circumstances of these 138 appeals under consideration are similar to the lead case, we apply our above decision to the instant appeals.
(GE Energy Parts Inc. vs. ADIT) & 137 appeals of GE Group companies In the result, all the appeals are partly allowed.
The order pronounced in the open court on 27.01.2017.