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2019 (9) TMI 1407 - AT - Income TaxIncome accrued in India - Permanent establishment of the Appellant Company under Article 5 of the DTAA between India and Mauritius - appellant-company is a non-resident company incorporated in Mauritius engaged in the business of shipping and declared income from shipping activities - assessee claimed that its place of effective management is located in Mauritius and hence as per Article -8, no income is taxable in India - HELD THAT:- Effective management can be only in between two contracting state is not correct and as per the facts narrated above, we are of the considered view that the effective management of the assessee is neither in Mauritius nor in India and we are in agreement with the views of Mr. Klaus Vogel, who is an eminent authority of International Taxation, that if the effective management of an enterprise is not in one of the contracting state, but is situated in the third state, the benefit of article-8, cannot be extended. No new facts or contrary judgments have been brought on record before us by the Ld. AR in order to controvert or rebut the findings recorded by the Ld.CIT (A). Moreover, there are no reasons for us to deviate from the findings so recorded by the CIT (A). Therefore, we are of the considered view that the findings recoded by the Ld. CIT (A) are judicious and are well reasoned. Accordingly, we uphold the same. Whether there exists any Agency PE or fixed place PE in India? - HELD THAT:- Co-ordinate Bench in the case of Bay Lines (Mauritius) [2018 (2) TMI 1524 - ITAT MUMBAI] has held that M/s Freight Connection India Pvt. Ltd. is an agent of independent status and hence it cannot be considered as constituting Agency PE of that assessee. The decision so rendered shall also apply to the instant case and accordingly, we hold that M/s Freight Connection India P. Ltd. shall not constitute Agency PE of the assessee. Assessee does not have PE in India and its income being business income, it cannot be brought to tax in India.
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