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2020 (10) TMI 503 - AT - Income TaxIncome accrued in India - Permanent Establishment (PE) in India under Article–5 of the India–Mauritius Tax Treaty - bring the income earned by the assessee to tax net in India - HELD THAT:- Both Parekh Marine Agency Pvt. Ltd. and Samsara Shipping Pvt. Ltd., were not exclusively working for the assessee and are having their independent status - Services provided to the assessee by them are in the ordinary course of their business. That being the case, the exceptions provided under Article–5(5) of the Tax Treaty would be clearly appliable. Hence, neither Parekh Marine Agency Pvt. Ltd. nor Samsara Shipping Pvt. Ltd. can be considered as dependent agents so as to constitute PE in India. The Co–ordinate Bench in Bay Lines Mauritius [2018 (2) TMI 1524 - ITAT MUMBAI] while deciding identical issue involving more or less similar facts, has held that if the agent was not exclusively acting on behalf of the assessee enterprise, it cannot be considered as dependent agent so as to constitute a PE. Thus, the ratio laid down in the aforesaid decision would also support assessee’s case. No infirmity in the order OF Commissioner (Appeals) holding that the assessee does not have a PE in India even under Article-5(5) of the Tax Treaty, hence, is eligible to avail the benefits of the Tax Treaty. More so, considering the fact that the Tax Authorities in Mauritius have issued Tax Residency certificate in favour of the assessee. Decided against revenue.
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