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2018 (3) TMI 477 - HC - Income TaxExistence of Permanent establishment (PE) so as to attract the provisions of Section 9 - Income accrued in India - income directly or indirectly attributable to the branches/offices is not taxable in India - DTAA between India and Japan - Held that:- Tribunal has followed its previous decisions of other year [2018 (3) TMI 434 - DELHI HIGH COURT] wherein held Court is unable to be persuaded that the ITAT erred in its conclusion that the evidence produced by the AO does not show that the LOs of the Assessee carried on any activity which was not incidental and auxiliary in nature. ITAT has examined in detail all the materials referred to by the AO in its remand report as well as the order of the CIT (A) and has given detailed reasons why none of these materials establish that the LOs were used by the Assessee to carry on any business or trading activity in India. The said factual finding by the ITAT has not been shown to be perverse. There was no basis for the AO to conclude that the Special Bench of the ITAT had erred in its conclusion in favour of the Assessee that the LOs were not carrying on any activity which was either incidental and auxiliary in nature. With the consistent position in this regard continuing since 1977-78, in the absence of any evidence to suggest a change in the circumstances, there was no warrant for the AO and the CIT (A) to take a different view of the matter. - Decided in favour of assessee.
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