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2013 (1) TMI 870 - AT - Income TaxWhether assessee is having Permanent Establishment in India or not - Held that:- assessee has no operation in respect of manufacture or sale of product carried out in India - Sales are made by the assessee to LIPL on principal to principal basis - The assessee a1so does not have a right to use LIPL premises - there should be some definite activity of the PE to which profits can be attributed and merely acting for a non-resident principal would not by itself render an agent to be considered as PE for the purpose of allocating profits - addition of ₹ 2,29,26,152/- made by the AO being a profit margin of 5% on the sales made by the assessee, is not sustainable - Decided in favor of assessee Chargebility of interest u/s 234B - Held that:- Assessee is a foreign company not liable to tax in India - when a duty was cast on the payer to deduct the tax at source, on failure of the payer to do so, no interest could be imposed on the assessee - Decided in favor of assessee Initiation of penalty u/s 271(1)(c) - Held that:- penalty proceeding are independent proceeding - the ground raised by the assessee is not pressed and accordingly we reject the ground taken by the assessee being pre-matured/not pressed is rejected
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