Western Digital Technologies Inc Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that SanDisk India [Western Digital India] is not a Dependent Agency Permanent Establishment [DAPE] of SanDisk Ireland and hence the assessee income is not chargeable to tax in India.
Facts- The present appeal is preferred by the assessee against Final Assessment Order. The appellant has mainly contesting that AO/ DRP erred in treating M/s SanDisk India as a Dependent Agency Permanent Establishment (PE) of the assessee and, consequently, the taxation of the assessee’s income in India.
Conclusion- Held that the dispute in the case of SanDisk Ireland was brought before this Tribunal in the assessee’s appeals bearing ITA Nos. 763 to 768/Bang/2022. The coordinate bench of the Tribunal, in its order dated August 25, 2023, after analyzing the statements recorded, referenced materials, and agreements, concluded that the activities carried out by SanDisk India for SanDisk Ireland did not constitute a DAPE. In view of the above, we hereby set aside the order of the ld. DRP/ AO with the direction not to hold M/s SanDisk India as dependent Agency PE and consequently the assessee income is not chargeable to tax in India. Hence, the ground of appeal of the assessee is allowed.
