Case Law Details
Herbert Smith Freehills LLP Vs ACIT (ITAT Delhi)
ITAT Delhi held that benefit of India-UK DTAA is available to Limited Liability Partnership on the portion of income from Indian engagement.
Facts-
The assessee is a firm of solicitors, having its registered office in the United Kingdom and is engaged in providing legal services to its clients worldwide (non-residents and residents of India). The assessee is a UK based Limited Liability Partnership with a majority of its partners being tax residents of the UK. During the previous year under consideration, the assessee provided legal services to its clients in India/ Outside India relating to activities carried out by such clients in India. AO in his assessment order opined that the assessee is not eligible for benefits of India-UK DTAA. According to the AO, an entity to be eligible for India-UK DTAA, needs to be ‘resident of a contracting state’, within the meaning of Article 4.1 of India-UK DTAA. In this case, according to the AO, the assessee was not a resident of UK. The AO held that a Limited Liability Partnership incorporated as per the laws of UK, is a fiscally transparent entity, not liable to taxation in UK and has been specifically excluded from the definition of a resident.
CIT(A) upheld the order of the AO. Being aggrieved, the present appeal is filed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
