Friday, 30 December 2016

Questions ITAT's 'mechanical adherence' to Galileo ruling on 15% profit attribution

Delhi HC allows Revenue’s appeal challenging ITAT order attributing 15% of assessee’s (USA based limited partnership concern, engaged in online airline booking services) income to India relying on co-ordinate bench ruling in Galileo International Inc; ITAT had held that assessee's operations in India constituted a PE under Article 5 of India-USA DTAA while attributing 15% income to Indian operations; Observing that Revenue's challenge is to ITAT's "mechanical adherence" to attribution rate of 15% in Galileo ruling, HC notes that "the AO had based his conclusions and determined the income based upon figures furnished by the assessee, as is apparent from a plain reading of the order"; Thus, rules that the ITAT “ought not to have disturbed that order, without a finding” and accordingly directs ITAT to render specific findings on the questions urged before it:HC 

No comments: