MTV profits attribution Mumbai ITAT today's order! Rule 10 Sec. 9 etc

extract:

8. We have heard the arguments of both the sides on this issue and also perused the relevant material on record. Having held that the assessee company had a permanent establishment in India during all the four years under consideration, the AO and the learned CIT(Appeals) calculated different percentages of advertisement revenue earned by the assessee as profit attributable to the said PE in India as given hereunder :.....

9. We have gone through the reasoning given by the AO as well as by the learned CIT(Appeals) in their respective orders for the years under consideration while applying different percentages of advertisement revenues to determine the profit attributable to the PE of the assessee company in India. After having perused the relevant portion of the orders of the AO and the learned CIT(Appeals), we find that the reasons given by the learned CIT(Appeals) to estimate 10% of the advertising revenue as profit attributable to the PE of the assessee company in India, in his impugned order for assessment year 2003-04 are more convincing and cogent. The relevant portion of the learned CIT(Appeals)’ order as contained in paragraph No. 5.17 to 5.22 of the said order is extracted below :...

A perusal of the relevant portion of the learned CIT(Appeals)’ impugned order for assessment year 2003-04 shows that he has relied on the Circular No. 742 issued by the CBDT prescribing in the guidelines for the purpose of proper and efficient management of the assessment of foreign telecasting companies. As further brought to our notice at the time of hearing, even the AO has estimated 10% of the advertisement revenues as profit attributable to the PE of the assessee company in India in assessment years 2006-07 and 2007-08 pursuant to the directions of DRP. We are, therefore, of the view that it would be fair and reasonable to estimate 10% of the advertisement revenue earned by the assessee in India as the profit attributable to its PE in India which is chargeable to tax in India..

refer DHC in BBC ; Rolls Royce (UK) & Singapore and Mumbai ITAT in Nimbus case