ABB AG v. Dy. CIT [IT(IT)A No. 1444/Bang/2019, dt.
24-11-2020] : 2020 TaxPub(DT) 5000 (Bang-Trib)
Point of accrual of Income of a non-resident as per DTAA
Facts:
Assessee a German entity was taxed for Fee for technical
services which was provided by its AE in India and reported in the TP
information. It was the case of the assessee that as per DTAA provisions only
income which is received can be taxed and not what is provided by its AE.
Revenue's plea was the taxability was on receipt or on due basis. On higher
appeal --
Held in favour of the assessee that no income under the
DTAA can be taxed on due basis. The DTAA uses the word "received" to
confirm this.
Since the assessee confirmed that the said provision was
offered to tax in the next year it was remanded for verification to that
limited extent as to whether the transaction was revenue neutral.
Applied:
DCIT v. UHDE GMBH (1996) 54 TTJ 355 (Mum-Trib) : 1996
TaxPub(DT) 0112 (Mum-Trib)
DIT (International Taxation) v. M/s. Siemens
Aktiengesellschaft (Income Tax Appeal No. 124 of 2010, dated 22-10-2012) (Bom.)
Johnson & Johnson v. ADIT (International Taxation)
(2013) 32 taxmann.com 102 (Mum-Trib)
Dissented:
CIT v. Standard Triumph Co. Ltd. (1979) 119 ITR 573
(Mad) : 1979 TaxPub(DT) 0536 (Mad-HC)