Office established merely for communication is not a PE under India-Korea DTAA

Director of Income Tax Vs Vs Samsung Heavy Industries Co. Ltd. (Supreme Court) The issue under consideration is whether the office which is established merely for the sake of communication is covered under the character of Permanent Establishment (PE) under India-Korea DTAA? Supreme Court states that, there were only two persons working in the Mumbai office, neither of whom was qualified to perform any core activity of the Assessee, the ITAT chose to ignore the same. This being the case, it is clear, therefore, that no permanent establishment has been set up within the meaning of Article 5(1) ...