ITAT Delhi allows Business Loss set off against FTS in case of PE

Hyosung Corporation Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi Bench in its order dated April 23, 2025, delivered an important ruling in Hyosung Corporation vs. ACIT. The case involves a Korean company with a Permanent Establishment (PE) in India, challenging the disallowance of setting off business losses against Fee for Technical Services (FTS) income. The tribunal permitted the set-off under Section 71 of the Income Tax Act, 1961, despite the absence of a corresponding provision in the India-Korea Double Taxation Avoidance Agreement (DTAA). Background of the Case ...