Case Law Details
UPS Asia Group Pte. Ltd. Vs ACIT (ITAT Mumbai)
ITAT held that when Indian Associated Enterprise (AE) is remunerated at arm’s length price (ALP) no further profit attribution is required and the issue of existence of Permanent Establishment becomes wholly tax neutral.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The captioned appeal has been filed by the assessee against the final assessment order dated 29.04.2021 passed under section 143(3) read with section 144C(13) of the Income Tax Act, 1961 (“the Act”) by the Assessing Officer for the assessment year 2017–18.
3. In the present appeal, primarily, two issues arise for our consideration viz., (i) whether or not the assessee has a Business Connection under section 9(1)(i) of the Act and a Permanent Establishment (hereinafter referred to as ―P.E.“) under Article–5 of the India–Singapore Double Taxation Avoidance Agreement (hereinafter referred to as ―India– Singapore DTAA“); and (ii) if the assessee is said to have Business Connection / P.E., then how much of the profit can be attributed to the said Business Connection / P.E. particularly when the transaction is at arm’s length price.
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