Mumbai ITAT holds that
consideration of Rs.112.83 lakhs received by assessee (a UAE
based Booz group company) for providing technical/professional
personnel to its Indian associated enterprise (i.e. Booz India)
during AY 2011-12, not taxable as business income under Article 7 of India-UAE
DTAA absent assessee’s PE in India; Rejects Revenue’s reliance on AAR
ruling which had held in case of other Booz group companies that they had PE in
India & income received by them from Indian companies was taxable as
business profit under Article 7; ITAT accepts assessee’s stand that without
examining the facts available in the present case, “the ruling given by
AAR in the group concern’s case should not have been taken by the tax
authorities as the basis for determining the existence or otherwise of PE of the
assessee herein”; Notes that the fees received by assessee for
provision of technical/professional personnel were in the nature of business
receipts; However, observes that there was no service PE constituted
since assessee’s employees worked for 156 solar days (i.e. lesser than 9 months
threshold), also notes that there was no fixed place PE as Booz India did
not earmark any specific place under the control or disposal of the assessee,
further rejects constitution of dependent agency PE :ITAT
Subscribe to:
Post Comments (Atom)
CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024
This Tax Alert summarizes Circular No. 19/2024 dated 16 December 2024 (VSV 2- December Circular) issued by the Central Board of Direct Tax...
-
PCIT vs. The Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) S. 50C Capital Gains: The valuation of the stamp autho...
-
This Tax Alert summarizes a recent ruling of the Supreme Court (SC) [1] on availability of CENVAT Credit on mobile towers and pre-fabrica...
-
IFRS and US GAAP - Similarities and Differences What is IFRS? And what is GAAP? The main difference between IFRS and US GAAP is that G...
-
Madras HC reverses ITAT's order, grants deduction u/s. 80P(2)(a)(i) to assessee (a society engaged in the business of banking and provi...
-
SC dismisses assessee-company’s SLP challenging Bombay HC order upholding re-assessment initiation (beyond 4 yrs period) based on a special...
-
SC dismisses Revenue’s SLP challenging Bombay HC order in case of assessee (belonging to Lodha group of companies engaged in real estate bu...
-
Claiming a foreign tax credit (FTC) in Australia allows companies to offset foreign taxes paid on income earned overseas against their Aust...
-
HC allows HDFC Bank’s writ petition, quashes AO’s order and subsequent reference to TPO alleging that certain related party transactions [p...
-
Delhi ITAT deletes Rs. 1558.57 cr. capital gains addition on Telenor India for AY 2014-15, holds that set off of non-refundable entry fee p...
-
This Tax Alert summarizes a recent ruling of the Bombay High Court (HC)1 on admissibility of input tax credit (ITC) w.r.t GST on advance p...
No comments:
Post a Comment