Asian Honda Motor Co. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that taxability of service receipt amounts in terms of India- Thailand DTAA needs fresh consideration since relevant documents are not submitted. Accordingly, appellant is directed to submit all the details before DRP.
Facts- The assessee is a non-resident company and is incorporated under the laws of Thailand is engaged in the business of sale of cars, spare parts etc. The appellant during the course of proceedings before lower authorities vide its reply dated 10.12.2023 has submitted that it has received certain payments in the nature of service receipts amounting to Rs.12,30,804/- and in the absence of FTS article in India-Thailand DTAA, such income is taxable as business profits; however in the absence Permanent Establishment (PE) the same would not be taxable in India. However, during the course of assessment proceedings itself notice was issued upon M/s Honda Motorcycle and Scooter India (HMSI) on 09.01.2014 and in response thereto, HMSI submitted that payment of Rs.10,84,21,790/- has been made to the appellant company as FTS during year under consideration. HMSI organized “Asia Road Championship ASB1000 Class 2020” and an agreement was made between appellant and HMSI, wherein appellant company rendered certain services to HMSI.
