Delhi ITAT rules that there
is no PE of assessee (a UAE co. engaged in providing solutions for subsea
off-shore construction industry) on account of the grouting activities carried
out in India during AY 2007-08; Accepts assessee’s stand that the grouting activities
fall within the construction activity as contemplated in specific provision of
Article 5(2)(h), and since the number of days spent in India was less than the
stipulated period of 9 months, there was no PE trigger for the assessee in
India; Revenue had argued that Article 5(1) squarely applies to the assessee,
further Revenue had argued that the assessee has equipment PE in India, lastly
it was also contended that even movables place of business may constitute a PE
despite they are temporary in location; Firstly, ITAT applies the maxim,
“generalia specialibus non deroganf' i.e, a general provision would not be
applicable when specific provision is there, next ITAT clarifies that merely
because grouting is not a simple masonry work and involves complex aspects, it
does not take it out of the construction activities as mentioned in Article
5(2)(h), “…and any further classification [as done by the Revenue] would amount
to rewriting DTAA.”; Lastly, rejects Revenue’s stand that since the assessee
indulged in on-going projects, 9 months stipulation cannot be applied, states
that PE determination has to be made for each AY and with reference to DTAA
provision.:ITAT
Subscribe to:
Post Comments (Atom)
Supreme Court ruling holds non-compete fee is allowable as revenue expenditure
The Hon’ble Supreme Court settled the long-standing controversy surrounding the tax treatment of non-compete fees and, based on the facts ...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
Section 68 -Cash credits Section 69 -Unexplained investments Section 69A - Unexplained money, etc Section 69B -Amount of investme...
-
In a landmark development that could have far-reaching implications for multinational groups operating in India, the Hon’ble Bombay High C...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
The taxation of transactions within a Hindu Undivided Family (HUF) is governed by specific provisions under the Income Tax Act, 1961. This...
-
In the case of "Maya Gopinathan vs Anoop SB 2024 INSC 334," the Hon'ble Supreme Court provided insightful guidance on the de...
-
The overall effective tax rate of a U.S. multinational corporation may have significant impact on the value of its stock. Therefore, it ...
-
Introduction The law relating to companies is laid down in Companies Act, 2013 and the rules made thereunder and t...
-
As per Income Tax Laws, any sum received or receivable in cash or kind under an agreement for not carrying business or profession is treat...
No comments:
Post a Comment