Subsidiary would only be deemed a PE if it satisfies specific tests outlined in DTAA

Progress Rail Locomotive Inc. (Formerly Electro Motive Diesel Inc.) Vs DCIT (International Taxation) (Delhi High Court)

Progress Rail Locomotive Inc. (formerly Electro Motive Diesel Inc.) and the Deputy Commissioner of Income Tax (International Taxation) engaged in a legal battle over the establishment of a Permanent Establishment (PE) in India. The dispute revolved around whether the activities of Progress Rail in India constituted a fixed place PE, which would have tax implications under the India-USA Double Taxation Avoidance Agreement (DTAA).

The court analyzed various f

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