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2021 (9) TMI 1169 - AT - Income TaxIncome accrued or deemed received in India - PE in India in terms of Article 5 of India US-DTAA - Proof of business connection in India - agency PE - whether the agents have the authority to conclude contracts (on behalf of the assessee)? - HELD THAT:- As decided in own case [2012 (3) TMI 27 - ITAT DELHI] though the assessee had a business connection in India, it had neither fixed placed PE nor agency PE in India and in absence of any PE in India the profits, if any, attributable to India operations could not be assessed as business profits under Article 7 of the India-US DTAA - the agents engaged by the assessee were independent agents under Article-5(4) of the India US-DTAA and they did not have the necessary authority to conclude the contracts of the assessee and, on that premise, it was held that there is no agency PE of the assessee in India. Under similar circumstances, the Co-ordinate Bench of the Tribunal held that though the assessee had business connection, it did not have any fixed placed PE nor agency placed PE in India, and, in the absence of any such PE in India, the profits, if any, attributable to India operations could not be assessed as business profits under Article-7 of the India US DTAA. - Decided against revenue.
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