D.K. Agarwal, Judicial Member. - These two appeals referred by the revenue are directed against the separate orders dated 31-1-2005 and 11-7-2006 passed by ld. CIT(A) for the assessment years 2001-02 and 2003-04 respectively, Since facts are identical and issues involved are common, both these appeals are disposed of by this common order for the sake of convenience.

2. Briefly stated the facts extracted from ITA No. 3703/M/2005 for assessment year 2001-02 are that the assessee is a Branch Office in India of Staubli A.G., Switzerland. It acts as a commission and meketing agent in respect of textile machineries manufactured by the Staubli Group entities, to customers in India. The Staubli Group entities directly sell/invoice and ship the machineries to the Indian customers. The assessee does not enter into a sales contract with the customers. The assessee also assists the customers in installation of the machineries at the client’s site. The machineries supplied by the Staubli Group entities are sold by them under a warranty-twelve months from the date of manufacture. The assessee renders after sales and maintenance services under the warranty period to the customers in India for