DAPE wholly tax-neutral if remuneration to agent was paid at ALP

Additional Director of Income Tax Vs Asia Today Limited (ITAT Mumbai) Conclusion: Once the existence of dependent agency permanent establishment was wholly tax-neutral, unless it was shown that the agent had not been paid an arm’s length remuneration, and when it was not the case of AO that the agents had not been paid an arm’s length remuneration, the question regarding the existence of dependent agency permanent establishment, i.e., under article 5(4), was a wholly academic question. Held:  Assessee-foreign telecasting company had sold advertising time and collected subscription...