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2010 (10) TMI 1178 - AT - Income TaxIncome accruing/arising in India - Attribution of income accruing or arising whether directly or indirectly through or from any business connection in India - PE in India or not? - CIT(A) attributing only 15% of the revenue as income accruing/arising in India within the meaning of Section 9(1) of the Act and Article 7 of the Indo-Spain DTAA - HELD THAT:- As it relates to the attribution of income arising to assessee in India, the issue is covered by the order of Tribunal in the case of Amadeas Global Travel Distribution S.A.[2007 (11) TMI 330 - ITAT DELHI-B] held that majority of the functions are performed outside India. Even the majority of the assets i.e. host computer which is having very large capacity which processes information of all the participants is situated outside India. The risk in this regard entirely rests with the appellant and that is in Spain, outside India. However, it is equally important to note that but for the presence of the assessee in India and the configuration and connectivity being provided in India, the income would not have generated. Thus the initial cause of generation of income is in India also. On the basis of above facts we can reasonably attribute 15 per cent of the revenue accruing to the assessee in respect of bookings made in India as income accruing or arising in India and chargeable u/s. 5(2) r/w s.9(1)(i). Therefore, we found that the appeals of the department are covered by the aforementioned observations of the Tribunal. Respectfully following the same, we found no merit in departmental appeals and they are dismissed. CIT(A) has correctly held that assessee has PE in India and his findings in this regard are in accordance with the aforementioned order - We dismiss the cross-objections filed by the assessee.
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