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2011 (2) TMI 1233 - HC - Income TaxPermanent establishment - as per Double Taxation Avoidance Agreement, the profit attributable to the liaison office held as a permanent establishment in India – Held that:- merely because the buyers place orders directly with the Head Office and make payment directly to the Head Office and it is the Head Office which directly sends goods to the buyers, would not be sufficient to hold that the work done by the liaison office is only liaison and it does not constitute a permanent establishment as defined in Article 5 of DTAA, liaison office is undertaking an activity of trading and therefore entering into business contracts, fixing price for sale of goods and merely because, the officials of the liaison office are not signing any written contract would not absolve them from liability, finding recorded by the tribunal is based on legal evidence and that the finding that the liaison office is a permanent establishment as defined under Article 5 of DTAA and therefore, the business profits earned in India through this liaison office is liable for tax is established, appeals are dismissed
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