TII CASES

2016-TII-188-ITAT-DEL-TP

FRIGOGLAS INDIA PVT LTD Vs DCIT: DELHI ITAT (April 8, 2016)

Income Tax - Sections 92CA(1), 143(3), 144C, 271(1)(c) & 10B (1)(a).

Keywords - royalty - commercial expediency - CUP method - TNMM - manufacturing unit.

Whether in case TNMM has been applied to the assessee company's transaction, it covers within its ambit the royalty transactions in question too and hence the Department's contention for applying the CUP method is erroneous - YES: ITAT

Whether if it is agreed that royalty is to be calculated on a specified agreed basis, after determining the net sales which is not recorded by the assessee in its books of account, the assessee can be allowed to employ an overall TNMM for examining the royalty - YES: ITAT

Assessee's appeal allowed

2016-TII-21-HC-DEL-INTL

HYOSUNG CORPORATION Vs AAR: DELHI HIGH COURT (Dated: April 6, 2016)

Income Tax - Sections 142(1), 143(2), 245N, 245R (2), 245Q - Constitution of India - Article 14 - India-South Korea DTAA - Article 25.

Keywords - constitutional validity - operation of bar - discriminatory in nature - pending application before AO - limited review.

Whether if the question raised in applications by the assessee before the AAR do not appear to be forming the subject matter of the notices u/s 143(2), the mere fact that such a notice was issued prior to the filing of the application by the assessee will constitute a bar on the AAR to entertain such applications - NO: HC

Whether if there are certain points in connection with the return of income on which the AO would like some additional information, the question raised in the applications by assessee before the AAR do not appear to be forming the subject matter of the said notice u/s 143 (2) (ii), can such application be rejected outrightly - NO: HC

Assessee's writ allowed

2016-TII-20-HC-DEL-INTL

PGS EXPLORATION NORWAY AS Vs Addl DIT: DELHI HIGH COURT (Dated: April 8, 2016)

Income tax - Sections 9(1)(vii), 44BB, 44DA & 115A.

Keywords - fees for technical services - geophysical services - PE - permanent establishment & taxation on presumptive basis.

Whether the activity of rendering geophysical services or 2D/3D seismic survey carried on by a non-resident assessee in connection with exploration of oil & natural gas, can be construed as "fees for technical services" in terms of Explanation 2 to section 9(1)(vii) - NO: HC

Whether the income of a non-resident assessee in the nature of "fees for technical service", can be made liable to tax in India u/s 44BB, if the said assessee had no PE in India in the relevant A.Y - NO: HC

Case remanded

TII BRIEF

Automatic exchange of information - Panama backtracks & OECD complains to G20

Tax administrators meeting next week to take stock of Panama Papers fall-out