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2021 (7) TMI 324 - AT - Income TaxExistence of an Assessee’s PE in India - Double Taxation Avoidance Agreement between India and the UAE - CIT(A) held that activities of the Project Office of the assessee were 'preparatory and auxiliary' in nature in terms of the Article 5(3)(e) of the Double Avoidance Agreement between India and the UAE - HELD THAT:- As decided in own case [2016 (2) TMI 47 - DELHI HIGH COURT] the consideration of various activities has been specified in the contracts in question. Annexure C (Contract Price Schedule and Rental Rates Schedule) specifically assigns value to various activities. It is also not disputed that the invoices raised by the Assessee specifically mentioned the work done outside India as well as in India. Thus, even though the contracts in question may be turnkey contracts, the value of the work done outside India is ascertainable. There is no dispute that the values ascribed to the activities under the contracts are not at Arm's Length. There is also no material to indicate that the work done outside India included any input from the Assessee's PE in India. The ITAT had considered the contract and in view of the fact that the consideration for various activities such as design and engineering, material procurement, fabrication, transportation, installation and commissioning had been separately specified, the Tribunal rightly held that the consideration for the activities carried on overseas could not be attributed to the Assessee's PE in India In view of the conclusion that the Assessee did not have a PE in India during the AYs 2007-08 and 2008-09, no income of the Assessee from the projects in question can be attributed to the Assessee’s PE.- Decided in favour of assessee.
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