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2019 (2) TMI 2044 - AT - Income TaxIncome of the Permanent Establishment (PE) - Income attributable to its agency PE again - appellant before us is a resident of Singapore and has business activities in India - Admittedly, it has appointed its 100% owned subsidiary, Hempel India as a sales agent, who is rendering sales support services - HELD THAT:- As per the assessee, once transfer pricing analysis of the transaction between assessee and its agent in India has been undertaken, there is no further need to attribute profits to the agency PE so long as the remuneration to the Indian agent has been held to be at an arm's length price. Undoubtedly, the proposition sought to be canvassed by the assessee has the approval of Hon'ble Supreme Court in the case of M/s. Morgan Stanley & Co. Inc [2007 (7) TMI 201 - SUPREME COURT]. The judgment of the Hon'ble Bombay High Court in the case of SET Satellite Singapore Pte Ltd. [2008 (8) TMI 96 - BOMBAY HIGH COURT] is also on the same lines in terms of which it is safe to draw the premise that if appropriate arm's length price has been found to have been applied and paid, nothing more would be left to be taxable in India by attributing further income to the PE of the foreign enterprise. The aforesaid proposition, in our view, is fully attracted in the present case having regard to the fact that for the instant assessment year, the commission has been found to be at arm's length price in the hands of the recipient Indian subsidiary, i.e. Hempel India. The ratio of the judgment of the Hon'ble Delhi High Court in the case of BBC Worldwise Ltd. [2011 (9) TMI 548 - DELHI HIGH COURT] is fully attracted in the present case and, therefore, the addition to the returned income is clearly untenable in the facts of the instant case. We hold so. - Decided in favour of assessee.
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