| |
| The Tax Publishers2021 TaxPub(DT) 2908 (Mum-Trib) INCOME TAX ACT, 1961
Section 9 (1)
Issue of existence of DAPE was wholly tax-neutral, inasmuch as Indian agents had been paid arm's length remuneration, and nothing further could, therefore, be taxed in the hands of assessee.
|
Income deemed to accrue or arise in India - Permanent Establishment - Receipits from sale of software products -
Assessee was a non-resident, based at USA. AO treated Novell Software Development India (P) Ltd. ('NSDIPL') as a Dependent Agency Permanent Establishment ('DAPE') of assessee in India and taxed revenues from supply of Novell Software Products to NSDIPL as Business Income attributable to such alleged DAPE on protective basis.Held: Issue of existence of DAPE was wholly tax-neutral, inasmuch as Indian agents had been paid arm's length remuneration, and nothing further could, therefore, be taxed in the hands of assessee.
Followed:ADIT v. Asia Today Ltd. ((2021) 124 Taxmann.com 1 (Mum-Trib) : 2021 TaxPub(DT) 0669 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|