Case Law Details
Agreement signed on 18.1.1997 between the assessee and M/s Oceaneering International AG (OIAG) registered at Switzerland. The OIAG was stated to be sole, lawful and absolute owner of the machinery provided to the assessee. It was further stated that actual physical possession of the said machinery could be delivered by the OIAG to the assessee outside India.It was further given in the agreement that the risk and reward pertaining to ownerships remained with OIAG. Further, the consideration was to be paid at the rates specified in Annexure B in the Agreement. Referring to the relationship between the parties, the agreement specified that it did not create the partnership joint venture between the two parties. The agreement was entered on a principle to principle basis. Thus, we find that as per the agreement the machinery was to be delivered to the assessee outside the country. Hence, there can be no case of the vendor having a permanent establishment in India. Moreover, there is no case for a business connection in India. There is no finding in the impugned order which would suggest that the vendor had a PE or a business connection in India.
INCOME TAX APPELLATE TRIBUNAL, DELHI
I.T.A. No. 1782/Del/2011
A.Y.: 2000-01
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