Case Law Details
Brief Facts of the case
1. The assessee is a tax resident of Germany, engaged inter alia in the business of providing innovative and environmentally sound solutions for a variety of customers in metals and minerals processing industries. The assessee-company filed its return of income electronically for the relevant AY 2010-11 on 29-03.2012 declaring total income at Rs.1,85,60,360/-. The AO framed draft proposed assessment order u/s 143(3) r.w.s 144C of the Act proposing to assess the following income three incomes
a. Sale of equipment as taxable in India:- the assessee supplied equipment to seven Indian companies during the year under consideration relating to Steel Industry. The assessee raised invoices for sale of equipment amounting to Euro 79,776,994 equivalent Rs.475,71,02,152/- applying TT buying rate as on 31-03-2010. The assessee filed copies of contract for sale of equipment and AO after considering the submissions and documents proposed that a profit percentage @ 10% be chargeable to tax from sale of equipment.
Aggrieved, assessee carried the matter to DRP. DRP issued direction u/s 144C(5) r.w.s. 144C(8) of the Act, after considering the various clauses in the agreement, penal directed the AO to assesse the estimated profit @ 10% of sale of equipment.
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