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2015 (12) TMI 1894 - AT - Income TaxPE in India - Scope of Article 5(2)(k) of DTAA between India and the UK - HELD THAT:- As in latest order passed by the Tribunal in [2015 (9) TMI 1532 - ITAT MUMBAI] in which identical issue has been decided while we agree with the learned counsel that art. 15 will not be applicable on the facts of the present case, this finding does not really come to the rescue of the assessee since, as we have already held, the assessee did have a PE in India under art. 5(2)(k) of the India-UK tax treaty, and, accordingly, profits attributable to the PE are taxable under art. 7 of the India-UK tax treaty. Decided against assessee. Reimbursement of the expenses as part of the income of the assessee - As decided in assessee own case [2015 (9) TMI 1532 - ITAT MUMBAI] as held reimbursements received by the assessee are in respect of specific and actual expenses incurred by the assessee and do not involve any markup, there is reasonable control mechanism in place to ensure that these claims are not inflated, and the assessee has furnished sufficient evidence to demonstrate the incurring of expenses. There is thus no good reason to make any addition to income in respect of these reimbursements of expenses - Decided in favour of assessee. Interest charged u/s 234B is to be deleted. Income relatable to work performed in India in liable for taxation in India - HELD THAT:- We find that in assessee’s own case for A.Y.1998-99 to 2001-02 [2015 (9) TMI 1532 - ITAT MUMBAI], the Tribunal has held that the profit which is attributable to the PE, can only be assessed in India. Respectfully following the aforesaid order and order of the Hon’ble Special Bench in the case of Clifford Chance [2013 (6) TMI 544 - ITAT MUMBAI] It is held that the only income in respect of services rendered in India, which are attributable to PE only, would be taxable in India. Thus, ground no. raised by the Revenue stands dismissed. Allow 85% of disbursement claim proportionate to the fee related to the services rendered in India as compared to total fees - We direct the AO to follow the aforesaid order of the Tribunal [2015 (9) TMI 1532 - ITAT MUMBAI] and hold that no amount should be disallowed.
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