Sponsored
    Follow Us:

Case Law Details

Case Name : Air Liquide Global EC Germany GMBH Vs ACIT (ITAT Delhi)
Appeal Number : ITA No.2401/Del/2023
Date of Judgement/Order : 07/02/2024
Related Assessment Year : 2020-21
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Air Liquide Global EC Germany GMBH Vs ACIT (ITAT Delhi)

In a landmark decision, the Income Tax Appellate Tribunal (ITAT) Delhi bench adjudicated the appeal filed by Air Liquide Global EC Germany GMBH against the Assistant Commissioner of Income Tax (ACIT) concerning the taxability of amounts received from offshore supplies. The case, pertaining to the assessment year 2020-21, highlights critical aspects of international taxation, Permanent Establishment (PE), and the applicability of specific sections of the Income-tax Act, 1961, in the context of cross-border transactions.

Background and Core Dispute

Air Liquide Global EC Germany GMBH, a non-resident entity incorporated in Germany, engaged in supplying plants and equipment to Bharat Petroleum Corporation Limited (BPCL) in India. The crux of the dispute revolved around the taxability of ₹89,73,88,390 received from these supplies. The assessee argued that these transactions, executed on a Freight On Board (FOB) basis outside India, did not constitute a taxable event within the Indian jurisdiction. Contrarily, the tax authorities contended that the transactions were part of a composite contract, encompassing services that culminated in a taxable presence in India, warranting taxation under Section 44BB of the Income-tax Act, 1961.

Sale outside India; No tax liability in India ITAT Delhi

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031