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2022 (12) TMI 700 - HC - Income TaxPE in India - activities of Research and development activities do not constitute a PE of the assessee in India - HELD THAT:- The question of law set out is covered by the decision Adobe Systems Incorporated [2016 (5) TMI 728 - DELHI HIGH COURT] Revenue from software supplies - taxable as Royalty under Article 12 of the India-Finland Double Taxation Avoidance Agreement - HELD THAT:- As it is admittedly covered by the decision of the Supreme Court rendered in Engineering Analysis Centre of Excellence Private Limited [2021 (3) TMI 138 - SUPREME COURT] Permanent Establishment [PE] in India - profits attribution - HELD THAT:- The Tribunal has returned a finding of fact, that the respondent/assessee recorded a “global net loss” in the relevant assessment year, and therefore no profit could have possibly been attributed to it. Having regard to the following finding of fact returned by the Tribunal, we are of the view that the proposed questions of law i.e., A and B would not arise for consideration. A plain reading of the Article 7 of the Double Taxation Avoidance Agreement entered into between India and Finland also persuades us to take the same view as that which is taken by the Tribunal. A plain reading of the Article 7(1) would show, that the issue of taxability would arise qua the respondent/assessee only if profits accrue to the respondent/assessee, and that too only to the extent they can be attributed to its PE in India. Given this position, we are not inclined to entertain the appeal.
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