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2022 (3) TMI 836 - AT - Income TaxIncome deemed to accrue or arise in India - PE in India - whether or not the assessee has a Business Connection u/s 9(1)(i) and a Permanent Establishment (P.E.) under Article–5 of the India–Singapore Double Taxation Avoidance Agreement - if the assessee is said to have Business Connection / P.E., then how much of the profit can be attributed to the said Business Connection / P.E. particularly when the transaction is at arm's length price - HELD THAT:- Transfer Pricing Officer accepted the value of international transactions as reported by the Indian A.E. in Form no.3CEB filed along with its return of income and made no adjustment to same. Thus, it is not disputed that the transaction between the assessee and its Indian A.E. was conducted at arm's length and the transfer pricing analysis of the same was also accepted by the Transfer Pricing Officer As facts and circumstances of the present case are similar to the assessment year 2015–16, which have also not been denied by the Revenue. Thus, respectfully following the decision of the Co–ordinate Bench rendered in assessee’s own case cited supra, we hold that when the Indian A.E. is remunerated at arm's length price no further profit attribution is required and the issue of existence of P.E. becomes wholly tax neutral. Accordingly, the addition made by the Assessing Officer is directed to be deleted. Assessee appeal allowed.
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