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2019 (11) TMI 1760 - AT - Income TaxDetermination of PE - assessee activity under the contract - duration of assessee’s operation in India - Threshold period of 12 months exceeded to have a PE established under Article 5(2)(g) of the DTAA - India-Cyprus Tax Treaty - assessee was awarded a contract by Allseas Marine Contractors, S.A.(AMC) in relation to the development of the Dhirubhai 1 and Dhirubhai 3 gas fieldslocated offshore in the Krishna Godavari Basinof the East Coast of India - Whether duration of assessee’s operation in India have to be counted from the visit of its employee? - Assessee submitted that as per the provisions of Article 5(2)(g) of the DTAA, a non-resident engaged in construction activities in India would be considered as having a PE in India only if the construction activity continues for a period exceeding twelve months - HELD THAT:- As relying on assessee own case for the AY 2008-09 [2018 (8) TMI 438 - ITAT DELHI] we answer the issue in favour of the assessee holding that no income of the assessee on contract executed by the assessee in India can be held to be taxable under Article 5(2)(g) of the DTAA. Grounds of appeal of the assessee are accordingly allowed.
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