Law on PE, Force of Attraction, tax on software embedded in hardware

Article 7(1) of the DTAA between India and Netherlands provides for taxing profits of the enterprise in the other state only to the extent they are attributable to the PE in the other state, adopting “No Force of Attraction” principle. With the above broad principles in mind we will now consider the facts of the present case and the rival contentions Extract of the ITAT Judgment This is an appeal by the Assessee against the order of D.D.I.T.(IT)-1, Kolkata (also referred to as AO) passed u/s 143(3) of the Act r.w. s. 153(1) and section 144C(13) of the Income Tax Act, 1961 (Act) relating t...