Income Tax Appellate Tribunal Delhi Ddit, New Delhi vs M/S. Nortel Networks Singapore Pte. ... on 28 May, 2018 In the IncomeTax Appellate Tribunal, Delhi Bench 'A', New Delhi Before : Shri Bhavnesh Saini, Judicial Member And Shri L.P. Sahu, Accountant Member ITA Nos. 5482, 3240, 3241/Del/2012 & 553/Del/2015 Assessment Years: 200607, 200708, 200910 & 201011 Nortel Networks Singapore Pte. Ltd., vs. DDIT, Circle 2(1), C/o SRBC & Associates, Golf View International Taxation, Corporate Tower B, Sector42, New Delhi. Sector Road, Gurgaon. PAN AACCN0752F (Appellant) (Respondent) ITA Nos. 5505/Del/2012 Assessment Year: 200607 DDIT, Circle 2(1), vs. Nortel Networks Singapore Pte. Ltd., International Taxation, C/o SRBC & Associates, Golf View New Delhi. Corporate Tower B, Sector42, Sector Road, Gurgaon. (Appellant) (Respondent) Assessee by Shri Sandeep Karhail, Advocate Revenue by Shri G.K. Dhall, CIT/DR Date of Hearing 22.05.2018 Date of Pronouncement 28.05.2018 ORDER Per L.P. Sahu, A.M.: Out of above five appeals, the former four appeals are filed at the instance of assessee and last one by the Revenue. The cross appeals for A.Y. 200607 are directed against the order of the ld. CIT(A)XXIX, New Delhi dated 22.08.2012, whereas the remaining three appeals by the assessee arise out of ITA Nos. 5482, 3240, 3241/Del/2012 & 553/Del/2015 2 the orders u/s. 144C/143(3) and the directions of learned DRP u/s. 144C(5) of the Act for the assessment years 200708, 200910 and 201011. 2. Since most of the issues involved in all these appeals are common, therefore, for the sake of convenience and brevity, all these appeals are being decided by this consolidated order. 3. The first issue involved in all the appeals of assessee is with respect to fastening the tax liability on the income earned on supply of telecommunication equipment to the Indian Customers. The ld. Authorities below have supported their conclusions reached in this behalf, holding that the assessee constitutes a Permanent Establishment in India in terms of Article5 of the IndiaSingapore Double Taxation Treaty and therefore, the profit on such supply of telecom equipment in India was attributed to assessee, the alleged PE in India. 4. The assessee has challenged this issue by way of grounds Nos. 1 & 2 in all of its four appeals, stating that similar dispute came for consideration before the ITAT, New Delhi in assessee's own case for A. Yrs. 200102 to 200506 (ITA Nos. 2172 to 2176/Del/2011), wherein the Coordinate Bench of Tribunal vide order dated 24.04.2018 has decided the issue in favour of the assessee. Therefore, this issue is squarely covered by the decision of Coordinate Bench (supra) in favour of the assessee and against the Revenue. The ld. DR opposing the contention of the assessee submitted that the above referred order of the Tribunal has been under challenge and relied on the orders of Assessing Officer. ITA Nos. 5482, 3240, 3241/Del/2012 & 553/Del/2015 3 5. Having considered the rival submissions, we find that the above issue stands finally decided by the Tribunal vide order dated 24.04.2018 (supra) in favour of the assessee in its own cases. The identical facts and observations made by the Tribunal in that order read as under : 13.6. The Commissioner (Appeals) upheld the order of Assessing Officer that office of Nortel LO and Nortel India would constitute a fixed PE of the assessee in India as the assessee and Nortel Canada were one and the same entity, and in the process of reaching such a conclusion, Ld. CITA made the following observations: "that the assessee has permanent establishment and business connection in India in the form of Nortel Networks India private limited and the liaison office of parent Nortel Networks Ltd, Canada; the employees of the assessee or other personnel carried out the business of the assessee through the premises of the LO or the premises of the subsidiary; the assessee has undertaken all presupply and post supply activities in India; Nortel India has neither the finance, nor technology nor experience to install these networks and therefore their only installing equipment supplied by its principal and that too at each stage