ESS Advertising (Mauritius) SNC et Compagnie v. Dy. DIT

SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2019 TaxPub(DT) 0900 (Del-Trib)

INCOME TAX ACT, 1961

Section 9

Once the payment made by assessee to Indian entity had been accepted to be at arm's length price, then no further attribution of profit was required to be done even if Indian entity was held to be constituting assessee's PE.

Income deemed to accrue or arise in India - Attribution of profits of PE in India - Remuneration paid to PE held to be at arm's length -

Assessee based at Mauritius appointed Indian entity as independent representative for soliciting TV advertisement on the channels and to collect and remit advertisement charges to the assessee's PE in India, attributed of 70% of its profit to the assessee. Held: Once the payment made by assessee to Indian entity had been accepted to be at arm's length price, then no further attribution of profit was required to be done even if Indian entity was held to be constituting assessee's PE.

Relied:DIT(IT) v. Morgan Stanley (2007) 292 ITR 416 (SC) : 2007 TaxPub(DT) 1354 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2003-04 & 2004-05

IN THE ITAT, DELHI 'B' BENCH