IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, D: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 3700/Del/2023 [Assessment Year: 2021-22]

GE Engine Services LLC, USA ACIT C/o 1^st Floor, Building- 7A, Circle Int Tax 1(3)(1), Standard Chartered Building, DLF Vs Civic Centre Cyber City, Phase III, Gurugram- Minto Road

122002 New Delhi- 110 002 Haryana PAN- AADCG1809R Assessee Revenue Assessee by Sh. Ravi Sharma, Adv.

M s. Shruti Khimta, AR Revenue by Sh. M.S. Nethrapal, CIT (DR) Date of Hearing 12.12.2025 Date of Pronouncement 11.03.2026

ORDER

PER BRAJESH KUMAR SINGH, AM, This appeal filed by the assessee is directed against the Final Assessment Order (FAO) passed u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 20.10.2023 pursuant to the directions of the Hon’ble Dispute Resolution Panel (DRP) vide order dated 13.09.2023 u/s

144C(5) of the Act for Assessment Years (AY.) 2021-22.

2. Ground no. 1 of the appeal and the submissions of the assessee are reproduced as under :

On the facts and circumstances of the case & in law, the assessment order passed by the Ld. AO under section 143(3) read with section 144C of the Act is bad in law.

Assessee’s submission The above ground is a general ground which agitates against the action of the Ld. AO in making an addition to the returned income of the Appellant on a misunderstanding of fact and misapplication of law. The detailed contentions are stated in the ensuing paragraphs.

2.1 The above ground is general in nature and does not require any separate adjudication.

3. Ground no. 2 of the appeal and the submissions of the assessee are reproduced as under :

On the facts and circumstances of the case & in law, the assessment order is erroneous and bad in law as it was passed on an incorrect understanding of facts and incorrect interpretation of the provisions of law. In doing so,

a. the Ld. AO erred in basing the conclusions upon the open domain enquiry which

have no link/applicability to the facts of the case

B. Assessee’s submission

The above ground is a general ground. It is submitted that the Ld. AO has passed the final assessment order in complete disregard to facts and submission made by Appellant during the course of the assessment proceedings.

3.1 The above ground is general in nature and does not require any separate adjudication and is dealt later in this order.

4. Brief facts of the case : GE Engine Services LLC is a company incorporated in USA and during the relevant year the assessee had carried out overhaul/ repair services of aircraft engines on an offshore basis at its facility located outside India that also entailed supply of spare parts on offshore basis.

4.1 The assessee filed its return of income for A.Y 2021-22 on 14.03.2022 declaring total income of Rs. 37,71,935 and claimed refund for Rs 60,22,600/- The case was selected for scrutiny under CASS and Notice u/s 143(2) of IT Act dated 27.06.2022 was issued to the assessee. During the course of assessment proceedings, the AO noted that the assessee had received income earned from supply of parts in the nature of offshore supply in the subject AY and the assessee had received the following receipts during the consideration AY:

4.2 The AO thereafter reproduced the relevant extracts of the order in the case of the assessee for AY 2019-20 and noted that since the factual matrix of the case was similar to the assessment proceedings concluded for AY 2019-20 show caused the assessee as to why the assessment in the present year should not be concluded in the lines of preceding year for AY 2019-20. It may be mentioned year in AY 2019-20 the AO had taxed similar receipts of Rs. 976,68,90,940/- @ 10% as Fees for Technical services under section 9(1) (vii) of the Act as well as per Article 12 (4) (b)

of India-USA DTAA.

4.3 Before proceeding further the assessee vide its submission dated 01-12-2025 submitted that against the order of the AO pa