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2011 (7) TMI 95 - ITAT, MUMBAIAssessee in default - TDS u/s 195 - whether or not the Star Cruise Management Limited was liable to income-tax in India in respect of the payments received it by through this assessee - The source rule of taxation, which typically originates in domestic tax law, is based on the principle that an income earned in a tax jurisdiction, irrespective of the residential status of the person earning the said income, is liable to be taxed in the tax jurisdiction where the income is earned - Even as the legal provision throws some light on what will, and what will not, constitute business connection, the precise connotations and scope of 'business connection' remains to be neatly defined - in the case of business connection by the virtue of a sales agent, by whatever name called, non-resident's income deemed to accrue or arise in India can only be such income as is attributable to the operations so carried out by the agent - It would thus seem to us that when no business operations are carried out in India, even if a non-resident has a business connection in India, no part of income of such business can be deemed to have accrued or arisen in India - Held that: onclusion is also in harmony with the conclusions arrived at by a Coordinate Bench in assessee's own case for the assessment years 2002-03 to 2005-06, reported in Dy. DIT v. Star Cruises India Travel Services (P.) Ltd. [2010] 39 SOT 18 (Mum.) - Appeal is dismissed
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