Income Tax Appellate Tribunal - Delhi
Ge Engine Services Malaysia Sdn Bhd, New ... vs Adit, New Delhi on 27 January, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : C : NEW DELHI
BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No.(s) Assessment Year (s) Appellant Respondent
672-676/Del/2011, 2002-03, 2003-04, GE Energy Parts Inc, Vs. ADIT,
5740/Del/2010 & 2004-05, 2005- AIFACS Building, Circle 1(2),
06,2006-07, 2007-08 1, Rafi Marg, International
New Delhi - 110 001. Taxation,
New Delhi.
5540/Del/2011 2008-09 Nuvo Pignone S.PA Vs. -do -
th
Building No.7A, 6 Floor,
DLF Cyber City, Phase-
III, Gurgaon.
593-598/Del/2011, 2001-02, 2002-03, GE Engine Services Vs. -do-
5738/Del/2010 & 2003-04, 2004-05, Distribution LLC
2005-06, 2006-07, AIFACS Building,
2007-08 1, Rafi Marg,
New Delhi - 110 001.
5545/Del/2011 2008-09 GE Engine Services Vs. -do -
Distribution LLC
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
725-728/Del/2011 2001-02,2002-03, GE Japan Ltd. Vs. -do-
2005-06 & 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
703-708/Del/2011, 2001-02, 2002-03, Nuvo Pignone S.PA Vs. -do-
5741/Del/2010 & 2003-04, 2004-05, AIFACS Building,
2005-06,2006-07, 1, Rafi Marg,
2007-08 New Delhi - 110 001.
5542/Del/2011 2008-09 Nuvo Pignone S.PA Vs. -do-
th
Building No.7A, 6 Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5728/Del/2010 2007-08 GE Engine Services Vs. -do-
Mcallen LP
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5729/Del/2010 2006-07 GE Visa S/A Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5730/Del/2010 2007-08 GE Engine Services Vs. -do-
Malaysia SDN BHD
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5731/Del/2010 2007-08 GE Caledonian Ltd. Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5732/Del/2010 2007-08 GE Energy (USA) LLC Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
2
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
5733/Del/2010 2007-08 GE Aircraft Engine Vs. -do-
Services Ltd.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5734/Del/2010 2007-08 GE Aviation Materials LP Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5735/Del/2010 2007-08 GE Engine Services Inc. Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5736/Del/2010 2007-08 GE Aviation Service Vs. -do-
Operation LLP
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5737/Del/2010 2007-08 GE Transportation Parts Vs. -do-
LLC
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5739/Del/2010 2007-08 GE Jenbacher GmBH & Vs. -do-
Co. OHG
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5742/Del/2010 2007-08 GE Packaged Power Inc. Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
3
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
5743 to 2004-05 to GE Canada Company Vs. -do-
5746/Del/2010 2007-08 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5748 to 2002-03 to GE Multilin Vs. -do-
5752/Del/2010 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5753 to 2002-03 to GE Pacific Pte Ltd. Vs. -do-
5757/Del/2010 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5877 to 2002-03 to GE Engine Services - Tri Vs. -do-
5881/Del/2010 2006-07 Remanufacturing Inc.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
587 to 2001-02 G.E. Engine Services Vs. -do-
592/DEL-2011 Mcallen LP
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
611 & 612/DEL/2011 2001-02 & GE Accessory Services- Vs. -do-
2002-03 Grand Prairie Inc.,
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
613 to 2001-02 to G.E. Aviation Materials Vs. -do-
618/DEL-2011 2006-07 LP
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
4
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
619 to 2001-02 to G.E. Engine Services Inc. Vs. -do-
624/DEL/2011 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
625 to 2001-02 to G.E. Packaged Power Inc. Vs. -do-
630/DEL/2011 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
631 to 2001-02 & GE Transportation Parts Vs. -do-
635/DEL/2011 2003-04 to LLC
2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
641 to 2001-02, 2002-03, G.E. Caledonian Ltd. Vs. -do-
644/DEL/2011 2003-04 & AIFACS Building,
2006-07 1, Rafi Marg,
New Delhi - 110 001.
645/DEL-2011 2001-02 G.E. Engine Services- Tri Vs. -do-
Remanufacturing Inc.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
646/DEL-2011 2001-02 MRA System Inc. Vs. -do-
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
697 to 2001-02 to G.E. Aviation Service Vs. -do-
702/DEL/2011 2006-07 Operation LLP
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
715 to 2001-02 to G.E. Aircraft Engine Vs. -do-
719/DEL-2011 2006-07 Services Ltd.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
720 to 2001-02 to G.E. Engine Services Vs. -do-
724/DEL/2011 2005-06 Malaysia SDN BHD
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
677 to 2002-03 to General Electric Canada Vs. -do-
681/DEL/2011 2006-07 Company
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
685/DEL-2011 2002-03 GE Transportation Parts Vs. -do-
LLC
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
688/DEL-2011 2002-03 General Electric Power Vs. -do-
Systems Inc.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5817 to 2002-03 to Bently Nevada LLC Vs. -do-
5821/DEL-2011 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
6
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
669 & 2005-06 G.E. Wind Energy Gmbh Vs. - do-
670/DEL-2011 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
682 to 2004-05 to G.E. Jenbacher Gmbh & Vs. -do-
684/DEL/2011 2006-07 Co. OHG
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
686 & 2005-06 & G.E. Energy (USA)- LLC Vs. -do-
687/DEL-2011 2006-07 AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
5535/Del/2011 2008-09 GE Aviation Materials LP Vs. -do-
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5536/Del/2011 2008-09 GE Aviation Services Vs. -do-
Operation LLP
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5537/Del/2011 2008-09 GE Jenbacher GmBH & Vs. -do-
Co.
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
7
ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
5538/Del/2011 2008-09 GE Transportation Parts Vs. -do-
LLC
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5539/Del/2011 2008-09 GE Engine Services Inc. Vs. -do-
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5543/Del/2011 2008-09 GE Engine Services Vs. -do-
Malaysia
Building No.7A, 6th Floor,
DLF Cyber City, Phase-
III, Gurgaon.
5541/Del/2011 2008-09 GE Caledonian Ltd. Vs. -do-
th
Building No.7A, 6 Floor,
DLF Cyber City, Phase-
III, Gurgaon.
772/Del/2012 2001-02 General Electric Power Vs. -do-
Systems Inc.
AIFACS Building,
1, Rafi Marg,
New Delhi - 110 001.
Assessees By : Shri S. Ganesh, Sr. Advocate,
Shri Sachit Jolly, Shri Rashi Dhir,
Shri Gautam Swarup, Shri Sidhartha
Singh & Shri Rahul Sateeja, Advocates
Department By : Shri Sanjeev Sharma, CIT &
Shri Anuj Arora, CIT, DR
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ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT)
& 137 appeals of GE Group companies
Date of Hearing : 19.01.2017
Date of Pronouncement : 27.01.2017
ORDER
PER BENCH:
These 138 appeals by different but connected assesses of GE group relate to the assessment years 2001-02 to 2008-09.
2. In all, following four issues have been raised in these appeals : -
i. Challenge to reassessment ii. Permanent establishment iii. Attribution of income iv. Interest u/s 234B.
3. While some of the appeals do not involve the issue of reassessment, but the other three issues are common to all.
4. In fact, there were 139 appeals by the GE group overseas entities before the Bench. The group chose GE Energy Parts Inc. vs. ADIT (ITA No.671/Del/2011- Assessment Year : 2001-02) as the lead case. Extensive arguments were made by both the sides in the case of GE 9 ITA No.672/Del/2011 (GE Energy Parts Inc. vs. ADIT) & 137 appeals of GE Group companies Energy Parts (supra) and it was candidly admitted that the remaining appeals involve mutatis mutandis similar issues. The arguments so made in the lead case were adopted by both the sides by submitting that the decision taken in the lead case on all the four issues will apply, to the relevant extent, to these 138 appeals.
5. We have passed a separate order in the lead case today and our decision on the four issues is that :-
i. Initiation of reassessment is valid. ii. Fixed place as well Agency Permanent establishment of all the GE overseas is established in India.
iii. Attribution of income to the PE should be 2.6% of the sales made by GE overseaes entities in India.
iv. Interest u/s 234B is not chargeable.
6. As the facts and circumstances of these 138 appeals under consideration are similar to the lead case, we apply our above decision to the instant appeals.
10 ITA No.672/Del/2011
(GE Energy Parts Inc. vs. ADIT) & 137 appeals of GE Group companies In the result, all the appeals are partly allowed.
The order pronounced in the open court on 27.01.2017.
Sd/- Sd/-
[SUCHITRA KAMBLE] [R.S. SYAL]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated, 27th January, 2017.
dk
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT (A)
5. DR, ITAT
AR, ITAT, NEW DELHI.
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