Case Law Details
RELX Inc Vs ACIT (ITAT Delhi)
ITAT Delhi held that payment received in the nature of Business Profit cannot be brought to tax in India in absence of Permanent Establishment in India.
Facts- The assessee is a tax resident of United States of America and engaged in the business of maintaining online data base (Lexis Nexis) pertaining to legal and law related information which included articles copy of judgments filed patent applications before patent registry and other legal information.
The assessee has no fixed place of business or a Permanent Establishment in India, since the assessee has no PE in India, filed return of income by treating that the subscription fees received for providing excess to data base was in the nature of ‘Business Income’ which is not taxable in India as per the provisions of India-US Double Taxation Advance Agreement (for short ‘DTAA’).
The assessment proceedings initiated against the assessee for both the assessment years and the draft assessment order passed u/s 143(3) read with Section 144C of the Act observing that from the Assessee’s website, it is seen that the assessee is not providing “mere access” to a static data base but is providing full fledged services and solutions for legal professionals.
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