An intangible property cannot constitute a Permanent Establishment: Delhi HC

Director of Income Tax Intn’l Vs Western Union Financial Services Inc. (Delhi High Court) Delhi High Court held that software, being an intangible property, do not in themselves constitute a Permanent Establishment. Hence, Laision Office of assessee didn’t constitute a PE in India. Facts- The respondent-assessee is stated to be a non-resident company registered in USA and has been engaged in the business of rendering Money Transfer Services since 1890. The essential business model adopted by it has been recorded by the Tribunal to be as follows. A person residing in USA desirous of tra...