M/s. Sanko Shoji Co. Ltd. Vs DCIT-International Taxation

Parties Involved

Facts Summary

The assessee, M/s. Sanko Shoji Co. Ltd., a company incorporated in Japan, supplied industrial equipment to Indian companies Suzuki Motor Gujarat Private Limited (SMG) and Maruti Suzuki India Limited (MSIL) during the Assessment Year 2020-21. The assessee also provided installation and commissioning services for the equipment. The assessee claimed that the supply of equipment was an offshore supply and thus not taxable in India. The Assessing Officer, however, held that the assessee had a Permanent Establishment (PE) in India and taxed the income from the offshore supply as attributable to this PE. The assessee filed objections and the Dispute Resolution Panel (DRP) upheld the Assessing Officer's order. Aggrieved, the assessee appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the income from the offshore supply of equipment is taxable in India.
• 2. Whether the expenses claimed by the assessee were correctly disallowed.
• 3. Whether the interest levied under sections 234A, 234B, and 234D is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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