ITA 1746/MUM/2016

Parties Involved

Facts Summary

The assessee, a Singapore-based company, is a subsidiary of Ingram Micro India Private Limited, an Indian company engaged in the distribution of information technology products. The assessee commenced its business in September 2001 with the objective of expanding the Ingram Micro group's customer base in India, Bangladesh, and Sri Lanka. The assessee did not file Form No. 3CEB and claimed that its business income was not taxable in India under the India-Singapore Double Taxation Avoidance Agreement. The Deputy Commissioner of Income-tax (International Tax) issued a notice under section 142(1) of the Act, and the assessee filed its return of income under protest. The Assessing Officer passed a draft assessment order, which was challenged by the assessee. The Income Tax Appellate Tribunal set aside the assessment order and restored the matter to the Assessing Officer for fresh adjudication. The Assessing Officer referred the case to the Transfer Pricing Officer for determination of the Arm's Length Price (ALP). The Transfer Pricing Officer concluded that the assessee had a Permanent Establishment (PE) in India and proposed an adjustment of Rs.61,32,34,759/-. The assessee appealed to the Tribunal, challenging the existence of a PE and the taxability of profits in India.…

Legal Issues

• 1. Whether the reference made by the Assessing Officer to the Transfer Pricing Officer was valid in law.
• 2. Whether the Transfer Pricing Officer exceeded his jurisdiction.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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