ACIT Vs Ericsson, AB Sweden (ITAT Delhi
GSM supplied to various cellular companies in India – appellant has no business connection and no PE in India – attribution of profit not possible.
Facts-
The main business of appellant is supply of GSM System to various cellular companies operating in India.
The main issue involved is whether appellant has business connection and exposure to Permanent Establishment in India.
The appellant’s claim is that it had supplied the equipment at Port in Sweden and their income is not liable to tax in India as per provisions of the Act and also the Indo-Swedish DTAA.
Conclusion-
We are of the considered view that the appellant has no business connection in India in respect of supply of GSM System by the appellant to cellular operators in India and further, there is no PE in any form in India in the captioned Assessment Years and therefore, the question of attribution of profit does not arise at all.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above captioned appeals by the assessee and revenue are preferred against the very same order of the ld. CIT(A) – 42, New Delhi dated 29.12.2017. Since common issues are involved in all the above appeals pertaining to same assessee and were heard together, these are being disposed off by this common order for the sake of convenience and brevity.
2. The assessee is in appeal against that part of the order of the ld. CIT(A) which has been decided against it and the Revenue is in appeal in respect of the other part of the order of the ld. CIT(A) which has been decided against it.
3. The brief history of the captioned appeals are that in the first round of litigation, vide order dated 12.03.2004, the Assessing Officer in Assessment Year 1999-2000, has made the additions as under:
