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
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