private equity firm are the highest paid,
therefore, the profit in the PE business are the highest. He further submitted that
combining results ... PE advisory job with the financial result of merchant
banking activity (with low profit margin) would result in profit margin of total
entity getting reduced
premise that the Appellant had accepted the existence of a PE.
2.1 That the AO has erred in holding that onshore revenue from
erection, commissioning ... that the off shore portion of supplies was
attributable to the supervisory PE of the Appellant in India
when such PE, if any, came into
contended that it did not have any Permanent Establishment ('PE') in India within the meaning of Article 5 of the Double Taxation Avoidance ... held that even under the Treaty, the Appellant had a PE in India under Article 5 and so the income was held taxable as business
business connection in India and AIPL is the Permanent Establishment (PE) of the appellant in India.
(b) computer hardware/software provided by the appellant ... travel agents also constitutes PE of the appellant in India.
In holding so the assessing officer observed as under:
The source of income
erred in law in concluding that there existed a
Permanent Establishment (PE)/business connection of Honda Motors,
Japan and Asian Honda Thailand, being non-resident ... attributed to the nonresident in Indian, irrespective of the
existence of a PE.
8. That the CIT(A) grossly erred in law in confirming
rejecting the contention of
the assessee that it did not have a PE in India, Ld. CIT(A) held that
the activities of the assessee ... India constituted PE of the assessee
under Article 5(1) fixed place PE, 5(2)(a) a place of management
4706/Del/2017
Korea therefore the Indian company would constitute PE of the
foreign parent company under Article 5(2)(a) of the DTAA ... carried
out through SIEL during the period under consideration,
question of PE does not arise. Assessee further asserted that,
based on analysis of employee statements
supply of telecom equipment in India was attributed to assessee, the
alleged PE in India.
4. The assessee has challenged this issue ... that office
of Nortel LO and Nortel India would constitute a fixed PE of the assessee in India as
the assessee and Nortel Canada were
assessee sought review of this position contending that there being no PE in India, its entire income received from the Indian companies was not taxable ... activities outside India will constitute commercial income and in the absence of PE in India, these payments cannot be brought to tax. However, payments
holding that the assessee did not have a Permanent
Establishment ('PE') in relation to various contracts for supplies and services
executed in India ... Assessing Officer
('AO') that the assessee had a fixed-place PE in India in relation to the
contracts for supplies executed
