Branch is not the PE in respect of the business done out of the supplies made by foreign principal

Ld. counsel for the assessee contended that similar action was taken by the AO for the assessment year 2003-0-4 also, which was reversed in the first appeal. He placed on record a copy of the order passed by the Tribunal on 13-08-2009 in ITA No.4960/Mum/2007 for the assessment year 2003-04 by which the Revenue’s appeal, under similar circumstances, came to be dismissed. A copy of the judgment of the Hon’ble jurisdictional High Court, in the appeal filed by the Revenue against the said order of the Tribunal for the earlier year, was also placed on record by which the Revenue’s appeal has been dismissed. The ld. DR was fair enough to concede that the facts and circumstances of the instant year are similar to those for the assessment year 2003-04. Respectfully following the precedent, we uphold the impugned order on this issue.

INCOME TAX APPELLATE TRIBUNAL,MUMBAI

I.T.A. No.5178/Mum/2009 – (A.Y. 2005-06)

ADIT (IT) Vs.  Varian Medical Systems (India) Pvt. Ltd.

Date of pronouncement 02-04-2012

O R D E R

PER R.S. SYAL, AM:

This appeal by the Revenue arises out of the order passed by the CIT(A) on 25-06-2009 in relation to assessment year 2005-06.

2. The only effective ground reads as under :

 “On the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) erred in holding that the assessee branch is not the PE in respect of the business done out of the supplies made by foreign principal and accordingly, its business profits attributable to PE are not taxable in India.”

3. At the very outset, the ld. counsel for the assessee contended that similar action was taken by the AO for the assessment year 2003-0-4 also, which was reversed in the first appeal. He placed on record a copy of the order passed by the Tribunal on 13-08-2009 in ITA No.4960/Mum/2007 for the assessment year 2003-04 by which the Revenue’s appeal, under similar circumstances, came to be dismissed. A copy of the judgment of the Hon’ble jurisdictional High Court, in the appeal filed by the Revenue against the said order of the Tribunal for the earlier year, was also placed on record by which the Revenue’s appeal has been dismissed. The ld. DR was fair enough to concede that the facts and circumstances of the instant year are similar to those for the assessment year 2003-04. Respectfully following the precedent, we uphold the impugned order on this issue.

4. In the result, the appeal is dismissed.

Order pronounced on the 02nd day of April, 2012.