Where offshore contract was only for procurement of cables that too outside India, no part of income could be said to be attributable to assessee's PE in India

IT/ILT: Where offshore contract was only for procurement of cables that too outside India, no part of income could be said to be attributable to assessee's PE in India
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[2014] 48 taxmann.com 331 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
Prysmian Cavi e Sistemi SRL.
v.
Assistant Commissioner of Income-tax, Circle-2 (3), Hyderabad*
B. RAMAKOTAIAH, ACCOUNTANT MEMBER
AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER
IT APPEAL NOS. 916 (HYD.) OF 2006 AND 244 & 246 (HYD.) OF 2012
[ASSESSMENT YEAR 2001-02]
JULY  25, 2014
Section 9 of the Income-tax Act, 1961, read with article 7 of the Model OECD Convention - Income - Deemed to accrue or arise in India (Business profits) - Assessment year 2001-02 - Assessee an Italian Company, entered into three different contracts with Power Grid Corporation of India Ltd. (PGCI) for setting up a fiber optic system for Southern Region - Assessee offered income only from contracts relating to onshore supplies and onshore services contract while maintaining that income from offshore contract was not taxable in India - Commissioner held that income as was reasonably attributable to operations carried out in India relatable to off shore contract was liable to tax in India - Whether following order of Tribunal in Pirelli Cavi e Sistemi Telecom S.P.A. v. Asstt. CIT [2014] 46 taxmann.com 216 (Hyderabad - Trib.) for earlier assessment year, no part of income could be said to be attributable to assessee's PE in India since offshore contract was only for procurement of cables, that too outside India - Held, yes [Paras 5.1 & 6][In favour of assessee]