Taxability of a South Korean Company on basis of its local office in India

RELEVANT PARAGRAPH 16. We have heard both the parties. The Hon’ble Apex Court in the case of CIT v. P V A L Kulandagan Chettiar 267 ITR 654 had an occasion to consider the impact of double taxation avoidance agreement provisions of Income Tax Act. The Hon’ble Apex Court held that where liability to tax arises under the local enactment, the provisions of sections 4 and 5 of the Act provide for taxation of globle income of an assessee chargeable to tax there under, then it is subject to the provisions of an agreement entered into between the Central Government and the Government of a...