Brief of the Case
ITAT Delhi held In the case of Hyundai Heavy Industries Co. Ltd. vs. ADIT that the said issue is already covered in favour of the assessee by tribunal decision given in earlier years in which the tribunal held that the contracts are divisible. The receipts pertaining to designing, fabrication and supply of material, the activities carried out outside India is not taxable in India. It is a well established proposition of law that the authorities below have to follow the decision of ITAT on an identical issue and the ITAT has to maintain consistency in its approach on an identical issue under the similar facts adopted in earlier years. Since the Learned CIT(DR) has disputed this claim of the assessee that during the year facts on the issue are similar to earlier years, Accordingly set aside the matter to the AO to ascertain that facts, are similar to the facts of the earlier years i.e. 2007-08 and 2008-09 after verifying the submissions of the parties in this regard and decide the matter in light of tribunal decision given in earlier years.
Facts of the Case
The assessee is engaged in the business of offshore construction and power project. During the year under consideration, the assessee received revenues from various projects including project Hyundai Construction Equipment India Pvt. Ltd. (HCEIPL) and GMR Diesel Generator Power Project. The two issues were raised:
