TMI Blog2017 (6) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... rresistible conclusion of permanent establishment in India. Both the authorities on appreciation of facts on record have arrived at a plausible conclusion. No substantial question of law arises - Income Tax Appeal No. 939 of 2014 - - - Dated:- 7-6-2017 - S. V. Gangapurwala And G. S. Kulkarni, JJ. Mr. Arvind Pinto, for the Appellant Mr.Nitesh Joshi i/b. Mr.Atul K.Jasani, for the Respondent ORDER PER COURT : 1. The department has assailed the concurrent findings of the Commissioner of Income Tax (Appeals) and the Tribunal in the present appeal on the following grounds stated as substantial questions of law: 6.1 Whether on the facts and in the circumstances of the case and in law, the Tribunal was in error in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding that the respondent is an agent of the foreign company and it constitutes a permanent establishment. The Directors in the respondentcompany and the foreign company i.e. M/s.Komli Inc. US, are common. The relationship of the present respondent with that of M/s.Komli Inc. US is that of an agent. The income is accrued in India. The facts on record have not been properly construed by the Commissioner of Income Tax (Appeals) and the Tribunal under the India US Tax Treaty. The respondent constitutes permanent establishment. According to the learned Counsel, the provisions of Article 5 of the IndiaUSA Tax Treaty has been misconstrued by the respondent visavis the facts of the present case. Learned Counsel submits that the case of the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mali Inc. US is on 'Principal to Principal' basis. The transaction is at arm's length. The nature of the transaction has been detailed by the Commissioner of Income Tax (Appeals) which is as under: 3.2 A reverse procedure is followed, when Komli Inc. intends to book an advertisement space on Indian websites for its overseas clients. In such a scenario, Komli Inc. would get in tough with the Appellant and purchase the advertisement space from the Appellant for its overseas clients. To summarise, the flow of transactions (visavis advertisement space booked by the Appellant from Komli Inc.) in chronological order is as under:1. Indian Client places a request to the Appellant for advertisement on a foreign website. 2. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
