Attribution to PE as article 7(1) of DTAA doesn’t apply when foreign enterprise is making loss

CIT Vs Nokia Solutions And Networks OY (Delhi High Court)

Delhi High Court held that as per Article 7(1) of DTAA attribution of profits to Permanent Establishment arises only if foreign enterprise is making a profit. The same is not applicable if foreign enterprise is making a loss.

Facts- Mainly, the present appeal is preferred by the revenue contesting that ld. ITAT has erred in holding that no profits are attributable to the PE of the Assessee relying on the decision of the Hon’ble Special Bench

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