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2020 (6) TMI 99 - AT - Income TaxPE in India - India-Spain DTAA - business profit carried out through PE - Services rendered from outside India - HELD THAT:- There is no such material or finding in the impugned order that any such kind of project or supervisory activity was carried out for more than six months in India. There has to be some kind of onsite planning and supervision activity which is completely absent here in this case, firstly, for the reason that the services have been rendered from outside India and secondly, there is no finding that any personnel of assessee have been performing any kind of such activity in India for a period of more than six months. Activity duration can be seen once any kind of such activities has been carried out on any site or any project in India, which finding is absent completely in the impugned orders, except for hypothesis and presumption without looking the real activity and the income earned. It has to come on record that there was some kind of actual activity which was carried out especially prior to 01.09.2006 through any fixed placed of business or through any personnel in India having crossed the threshold period of six months. We hold that there is no Permanent Establishments during the relevant assessment year 2007-08 for the activities relating to DPIR and engineering services from which the assessee has earned the revenue and same cannot be taxed as business profit carried out through PE in India. It is in the nature of FTS which is to be taxed in accordance with Article 13(4) of India-Spain DTAA. - Decided in favour of the assessee.
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