The Lubrizol Corporation, USA Vs. ACIT (Int. Taxation)

Parties Involved

Facts Summary

The Lubrizol Corporation, a non-resident corporate entity from the USA, filed an appeal against the final assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961. The assessee contested the final assessment order on several grounds, including the failure to implement the directions of the Dispute Resolution Panel (DRP) and the determination of certain income as Fees for Technical Services (FTS) and Fees for Included Services (FIS). The assessee also contested the determination of the Arm's Length Price (ALP) of corporate guarantee commission. The Assessing Officer had passed a rectification order under section 154 of the Act, which the assessee argued was insufficient to validate the final assessment order.…

Legal Issues

• 1. Whether the Assessing Officer has the power to rectify a mistake in the final assessment order passed pursuant to the directions of the DRP under section 154 of the Act?
• 2. Whether Lubrizol India Private Limited (LIPL) can be considered as a Permanent Establishment (PE) of the assessee in India?
• 3. Whether the reimbursement of expenses received by the assessee from its Indian Associated Enterprises (AE) can be treated as FTS/FIS?
• 4. Whether the determination of ALP of corporate guarantee commission at 0.5% is appropriate?

Judgment Outcome

Decided in favour of Partly Assessee.

Precedents Relied Upon

Similar Judgements

• Kyocera Document Solutions Asia Ltd Vs. The A.C.I.T

  Delhi 'D' Bench benchAY 2020-21, 2021-22, 2022-23Partly Allowed

• M/s NCR Global Solutions Limited Vs. Deputy Commissioner of Income Tax

  Delhi bench

• Turf Estate JV Vs. Assisstant Commissioner of Income Tax Circle - 20(3), Mumbai

  Mumbai Bench benchAY 2017-18Partly Allowed

• Brown Forman Worldwide LLC India, Branch Office Vs Assistant Commissioner of Income Tax, International Tax

• Tata Projects Limited vs Commissioner of Income Tax

  Mumbai bench

• Kreuz Subsea Technologies Pte. Ltd. vs. ACIT

  Delhi bench