Permanent establishment under the India-UK treaty required treaty-specific consideration, supporting recall for a fresh hearing.

Taxability of business profits under the India-UK treaty depended on whether the assessee had a permanent establishment in India during the relevant year. The notes state that an earlier consolidated hearing mainly concerned group entities covered by another treaty and did not allow the assessee to address its treaty-specific facts. They identify recall of the earlier order and a fresh hearing on all relevant issues, including the existence or absence of a permanent establishment, as warranted.

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Issues: Whether the earlier consolidated Tribunal order required recall where the assessee did not receive an opportunity to address its case under the India-UK treaty, including the existence of a permanent establishment for the relevant year.

Analysis: Although the receipt had been characterised as business profits rather than fees for technical services, its taxability depended on the facts concerning a permanent establishment in India for the relevant year. The earlier consolidated hearing principally concerned group entities governed by a different treaty, and the assessee had not addressed the facts specifically applicable to it. A further opportunity was therefore warranted on all relevant issues, including the existence or absence of a permanent establishment.

Conclusion: The assessee was entitled to recall of the earlier order so that its case could be heard afresh on the relevant treaty and permanent-establishment issues.

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