Shanti Prime Publication Pvt. Ltd.
Sec. 90 of Income-tax Act, 1961— Double taxation relief—The assesseeJC Bomford Heavy Products Ltd.
was a company incorporated under the laws of the United Kingdom. It is a non-resident company for the purposes of Indian Tax laws and is a tax resident of U.K under art. 4 of the DTAA entered into between India and U.K. It is a wholly owned subsidiary of M/s J.C. Bamford Excavators Ltd., England. The assessee filed return of income for asst. yr. 2011-12. the AO held that an amount is taxable at the rate applicable to foreign companies for business income, i.e., 40 per cent and hence taxed accordingly. Further, the amount of rectification work was taxed similarly i.e., 20 per cent of the receipts were treated as representing the expenses incurred wholly and exclusively by the PE of the assessee in India. Against the assessment order, the assessee filed the appeal before tribunal.
Tribunal observed that the assessee has provided the details of rectification and rework in respect of component export services activity, but the AO has not discussed the same while giving the findings. Therefore, it will be appropriate to remand back this issue to the file of the AO/TPO for proper adjudication in consonance with the evidences filed by the assessee before the AO/TPO. The assessee be given opportunity of hearing by following principles of natural justice. Appeal of the assessee was partly allowed for statistical purpose . --- JCB HEAVY PRODUCTS LTD. vs. Deputy CIT. 23 ITCD Online 145 (DEL)