DCIT Vs Transkor Global Pte Ltd (ITAT Delhi)
ITAT Delhi held that it is proved that assessee doesn’t have any permanent establishment in India, during the year under consideration, accordingly, receipts classifiable as business income cannot be taxed in India.
Facts- The only identical issue to be decided in this appeal as to whether the ld CIT(A) was justified in holding the receipt of the assessee as business income instead of fee for technical services (FTS) as held by the ld AO in the facts and circumstances of the instant case.
The assessee company is a body corporate incorporated and registered in the Republic of Singapore and is governed by the Laws of Singapore. The assessee is engaged in the business of providing technical non-invasive inspection and integrity assessment/scanning of off-shore pipelines under the sea or surface. The company has developed a system of non-invasive survey of pipeline inspection and its integrity called as Magnetic Tomography Method (MTM) technology. This technology is used for inspection and integrity assessment of Oil and Gas pipelines. The assessee is a Non-Resident Company having no permanent place of business in India in terms of the provisions of the Income Tax Act, 1961. It was submitted that since the assessee is a tax resident of Singapore, it would be entitled for beneficial provisions of Double Taxation Avoidance Agreement (“DTAA”) entered between Govt. of India and Singapore. For the A.Y 2019-20 the assessee has filed its return of income u/s 139(4) of the Act declaring total income of Rs. Nil on 03.03.2020.
