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2014 (1) TMI 1274 - ITAT MUMBAIChargeability to tax - Whether the amount is chargeable to tax as per Article 7 of the DTAA – Held that:- The AR was fair enough to accept that CMA may be considered as the dependent agent of the assessee - Thus, it satisfies the requirement of Article 5 of the DTAA - CMA was the agent of the assessee and hence constitutes its permanent establishment in India. Determination of Business profits as per Article 7 of the DTAA – Income computed u/s 44B of the act – Exemption granted under Article 8 of the DTAA - Held that:- The income in respect of 21 voyages which has been considered as chargeable to tax in India as per Article 7 of the DTAA is the amount on which the assessee paid commission etc. to CMA, which is its AE and also a dependent agent - The receipt in the hands of the CMA has been determined at ALP under due process of law – The decision in Delmas, France vs. ADIT(IT) [2012 (1) TMI 9 - ITAT MUMBAI] followed – where the associated enterprise (that also constitutes a PE) is remunerated on ALP, then nothing further would be left to attribute to the PE – thus, the income in respect of 21 voyages cannot be included in the hands of the assessee - Decided partly in favour of Assessee.
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