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2010 (1) TMI 690 - ITAT BANGALORE-AReassessment - Liaison activity or business activity - Survey - assessee is having its head office in Hongkong and branches in India at Bangalore, Tirpur and Delhi and the branches are headed by office manager who is responsible for the overall working of the branches - Activities of the branch office of M/s Mondial Orient Ltd., in India include evaluating the correct manufacturers/suppliers and assessing their suitability to the buyers - Held that:- it is not necessary that assessee should directly export if the non-resident operates through the assessee but confined to the purchase of goods for the purpose of export is exempted. - Therefore, purchase per se for the purpose of export is not the requirement of the section 9. There is no question of PE because there is no DTAA between India and Hongkong. - Assessee's income is exempted under s. 9(1)(i) Expln. 1(b). - Revenue's case that assessee falls under s. 5 is not acceptable.
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