ITAT : No PE for Booz UAE; Revenue’s reliance on AAR in group concern’s case, misplaced

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