Case Number: ITA 753/DEL/2019
Appellant: GE Engine Services LLC, Gurgaon
Respondent: DCIT (International Taxation), Circle-1(3)(1), New Delhi
Assessment Year: 2008-09
Result: Favorable to Appellant
Case Filed On: February 1, 2019
Order Type: Final Tribunal Order
Date of Order: February 27, 2019
Pronounced On: February 27, 2019
The case ITA 753/DEL/2019 involves the appellant, GE Engine Services LLC, challenging the assessment made by the respondent, DCIT (International Taxation), Circle-1(3)(1), New Delhi, for the assessment year 2008-09. The appellant filed the case on February 1, 2019, and the final order was pronounced on February 27, 2019.
GE Engine Services LLC, located in Gurgaon, filed its income tax return for the assessment year 2008-09. The Deputy Commissioner of Income Tax (DCIT), Circle-1(3)(1), New Delhi, challenged the assessment, raising issues related to the existence of a Permanent Establishment (PE) in India and the attribution of profits to this PE. The case was brought before the Income Tax Appellate Tribunal (ITAT) for resolution.
During the proceedings, the appellant was represented by Shri Sachit Jolly, Advocate, and Shri Aarush Bhatia, Advocate. The Revenue was represented by Shri J.K. Mishra, CIT DR. The primary issues revolved around the existence of a PE in India and the attribution of profits to this PE, which led to the imposition of penalties under Section 271(1)(c) of the Income Tax Act.
The tribunal, comprising Judicial Member Shri Kuldip Singh and Accountant Member Shri Anadee Nath Misshra, reviewed the case. Key points from the tribunal’s findings include:
The Tribunal concluded that the penalty under Section 271(1)(c) of the Income Tax Act was not sustainable due to the debatable nature of the issue. The penalties imposed by the AO and confirmed by the CIT(A) were ordered to be deleted, and the appeal was decided in favor of the appellant.
Order Pronounced in the Open Court on 27th February, 2019
Signatures:
(Anadee Nath Misshra, Accountant Member) (Kuldip Singh, Judicial Member)
Date: 27/02/2019
Copy forwarded to:
Assistant Registrar
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