MOSDORFER GMBH,MUMBAI vs. ACIT CIRCLE INT. TAX. 2(2)(1), NEW DELHI

ITA 286/DEL/2023Status: DisposedITAT Delhi20 November 2023AY 2013-14Bench: SH. G.S.PANNU, HON’BLE VICE PRESIDENT AND SH. ANUBHAV SHARMA (Judicial Member)14 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reimbursement of testing charges was not FTS as the assessee merely acted as a medium without adding value. It also held that the sale of goods to Indian entities was on a principal-to-principal basis, with no fixed place of business or Permanent Establishment (PE) in India, thus the income from such sales was not taxable in India.

What were the facts?

The assessee, Mosdorfer GMBH, had its case reopened for AY 2013-14. The Assessing Officer (AO) examined transactions involving share acquisition, sale of goods, and reimbursement of expenses from its Indian subsidiary. The AO added back Rs. 1,36,660/- as income on account of FTS and also considered income from sale of exported goods as taxable in India.

What were the issues?

Whether reimbursement of expenses constitutes Fees for Technical Services (FTS) and whether the sale of goods by a non-resident to Indian entities creates a Permanent Establishment (PE) in India.

Which sections of the Income-tax Act were involved?

Section 147,Section 144C(13),Section 9

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SH. G.S.PANNU, HON’BLE & SH. ANUBHAV SHARMA

Hearing: 10.11.2023Pronounced: 20.11.2023

PER ANUBHAV SHARMA, JM:

The appeal has been filed by assessee against the assessment order dated 20.12.2022 for assessment year 2013-14 passed by Circle Int. Tax, 2(2)(1), u/s 147 r.w.s. 144C(13) of the Income Tax Act, 1961 in pursuant to the directions of Dispute Resolution Panel-2, New Delhi.

2.

The brief facts of the case are that the case of assessee was reopened u/s 147 of the Act, after recording reasons to believe that income of assessee for A.Y. 2013-14 has escaped assessment. AO had examined NMS data and Mo orfer GMBH, Mumbai 2 observed that during the year under consideration, assessee invested Rs. 4,44,00,000/- to acquire shares and received payment of Rs. 79,73,433/-. In response to the notice

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →