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| The Tax Publishers2020 TaxPub(DT) 2371 (Mum-Trib) INCOME TAX ACT, 1961
Section 143(3)
As regards offshore supply of equipments to ONGC, property in goods was transferred by non-resident assessee to ONGC outside India and entire sale was executed outside India and thus being a case of outright transfer of title in products by assessee to ONGC outside India revenue received by assessee could not be construed to be FTS or Royalty and brought to tax in India.
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Assessment - Addition to income - Revenue earned by non-resident assessee from offshore supply of equipments to Indian party -
Assessee based at Australia earned revenue from offshore supply of products to ONGC. AO taxed the same. Held: As regards offshore supply of equipments to ONGC, property in goods was transferred by non-resident assessee to ONGC outside India and entire sale was executed outside India and thus being a case of outright transfer of title in products by assessee to ONGC outside India revenue received by assessee could not be construed to be FTS or Royalty and brought to tax in India.
Relied:Ishikawajima Harima Heay Industrioes ltd. v. DIT (2007) 288 ITR 408 (SC) : 2007 TaxPub(DT) 876 (SC) and CIT v. Hyundai Heavy Industries Co. Ltd. (2007) 291 ITR 482 (SC) : 2007 TaxPub(DT) 1249 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT, 1961
Section 9(1)(vi)/(vii)
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