GE Global Parts & Products GMBH Vs ACIT (ITAT Delhi)
No Office, No Expats, No PE – ITAT Shuts Down Revenue’s Repeat Tactics in GE Global Case
Delhi Bench of the Income Tax Appellate Tribunal (ITAT) in GE Global Parts & Products GMBH v. ACIT [Order dated 17 October 2025] reaffirmed that the Revenue cannot assume the existence of a Permanent Establishment (PE) merely by relying on findings from earlier years without examining the factual circumstances of the relevant assessment year. The Tribunal held that since the foreign company had no office, expatriates, or active business presence in India during the relevant period, no PE could be said to exist under the India–Germany Double Taxation Avoidance Agreement (DTAA).
Background of the Case
The assessee, GE Global Parts & Products GMBH, a tax resident of Germany, filed an appeal against the final assessment order passed under section 143(3) read with section 144C(13) of the Income Tax Act, 1961, for Assessment Year (AY) 2022–23. The principal issue before the Tribunal was whether the assessee had a Permanent Establishment in India during the relevant year, thereby warranting attribution of profits to India.
The assessee’s counsel argued that this issue had already been decided in the company’s favour by a Coordinate Bench of the Tribunal in earlier years—specifically AYs 2018–19 and 2019–20—where it was conclusively held that no PE existed in India. The factual matrix of the current year, it was contended, was identical to those years. Accordingly, the assessee sought deletion of the PE attribution made by the Assessing Officer (AO).
The Departmental Representative, however, contended that earlier Tribunal orders did not adequately consider certain Supreme Court rulings and urged the Tribunal to uphold the findings of the lower authorities.
