IN THE ITAT DELHI BENCH ‘B’
Ericsson AB
versus
Deputy Director of Income-tax, International Taxation
IT Appeal Nos. 1735 to 1740 (Delhi) of 2011
[Assessment years 1999-2000 to 2004-05]
July 20, 2012
ORDER
J. Sudhakar Reddy, Accountant Member
All these appeals are filed by the assessee and are directed against a common order passed by the CIT(A)-XI, New Delhi dated 23.2.2011 for the A.Ys 1999-2000 to 2004-05.
2. As both parties submitted that the issues are common in all these appeals, for the sake of convenience they are heard together and disposed off by way of this common order.
3. The facts of the case as brought out by the A.O. at paras 1,2,3,4 and 5 of the assessment order which is extracted for ready reference.
“1. The assessee, M/s Ericsson Radio Systems AB, is a company incorporated in Sweden and is a tax resident of Sweden. The company is a wholly owned subsidiary of Telefonaktiebolaget LM Ericsson, Sweden. The main business of the assessee is supply of GSM Mobile Telecommunication system comprising of hardware and software to various cellular companies operation in India (ICO’s).
2. The assessee company was not filing its return of income in India. Pursuant to the notices sent by the ITO returns were filed. The return of income for this year was filed on December 4,2001 declaring NIL income. Notice u/s 148 was issued on October 4,2002. Vide letter dated 17.10.2002, it was stated that the return filed on 4.12.2001 may be treated as the return filed in response to notice u/s 148 of the I.T. Act. In response to the notice issued u/s 143(2) of the I.T. Act, 1961, Sh. Krishan Malhotra, Sh. Rajiv Monga and Sh. A. Jain of M/s RSM & Co. appeared from time to time. The submissions and details were filed which have been placed on record.
3. The assessee company is globally renowned for its telecom hardware and software products, equipment and expertise. During the year, the assessee has supplied GSM system comprising of hardware and software to the undermentioned ICO’s under contracts. These supplies were made under pre-existing contracts signed in earlier years and no fresh contract was entered into by the assessee. The chart showing supplies of hardware and software is as follows.
