Essential to prove involvement in physical activities of erection and commissioning of power project to be taxed under special provisions

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH ‘H’ : NEW DELHI
ITA No.1226/Del/2011

Assessment Year :2006-07

Voith Siemens Hydro Kraftwerkstechnik GMBH & Co KG Vs. DDIT

ORDER

R.P.TOLANI, JMPER            :

This is assessee’s appeal.  Following grounds are raised:-

“1. That the order of learned Commissioner of Incom Tax (Appeals)[CIT(A), is bad both in law and on facts of th case.

4. That without prejudice, the learned CIT(A), mechanically following the orders of earlier years, has erred in arbitrarily estimating profit on consideration for supervisory services © 50% of the gross amount.

5. That without prejudice, the learned CIT(A), mechanically following the order of earlier years, has erred in upholding the subjecting of the receipts of the assessee to tax © 20% on the gross amount without allowing any deductions for expenditure or allowance.

6. That the learned CIT(A) has erred in upholding levy of interest u/s 234B of the Income Tax Act, the provisions of which are not attracted on the facts of the case.