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| The Tax Publishers2020 TaxPub(DT) 4473 (Del-Trib) INCOME TAX ACT, 1961
Section 9(1)(i)
Where since PE in India was remunerated at arm's length by non-resident assessee, which stood accepted by TPO of PE in India, then, no further attribution of profits was to be made to PE of assessee.
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Income deemed to accrue or arise in India - PE/Business connection in India - Attribution of profits to deemed PE - PE remunerated as at arm's length in terms of section 92C
Assessee was a partnership firm based at Mauritius was engaged in selling advertisement time and programme sponsorship in connection with programming via non-standard television from Mauritius on ESPN, Star Sports and Star Cricket Programming services. ESPN Software India (P) Ltd. (in short, 'ESPN India') a company incorporated under laws of India was engaged in the business of acquiring Advertisement from assessee and allotting it to various Indian advertisers and advertising agencies in India. AO treated ESPN India as assessee's PE in India attributed 30% of gross revenue to deemed PE of assessee, Assessee pleaded that even if a P was deemed to exist, no profit was attributable to such PE as agent (ESPN India) was remunerated on an arm's length basis. Held: As ESPN India was remunerated at arm's length by assessee, which stood accepted by TPO of ESPN India and also the assessee, then no further attribution of profits was to be made to PE of assessee.
Followed:Honda Motors Co. Ltd. v. ADIT in Civil Appeal Nos. 2833 to 2840 of 2018, Judgment, dated 14-3-2018, reported in (2018) 92 taxmann.com 353 (SC) : 2018 TaxPub(DT) 2086 (SC) and Asstt. DIT v. E-funds IT Solutions Inc. (2017) 86 taxmann.com 240 (SC) : (2017) 251 Taxman 280 (SC) : (2017) 399 ITR 34 (SC) : 2017 TaxPub(DT) 4562 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 234B
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