The assessee, Adobe Systems Software Ireland Limited, is a...

The assessee, Adobe Systems Software Ireland Limited, is a company incorporated under Irish laws and a tax resident of Ireland per the India-Ireland tax treaty. The tribunal held that the issue of existence of a Permanent Establishment (PE) in India is covered by a coordinate bench order, which deleted additions made by the Assessing Officer. It was held that no addition was proposed by the Transfer Pricing Officer for Adobe India regarding marketing support services. Attributing profits to the alleged PE (Adobe India) would contradict Supreme Court rulings in Morgan Stanley and E-Funds cases. The tribunal rejected the reasons and conclusions on which the Assessing Officer and Dispute Resolution Panel's findings of PE existence were premised. Consequently, the additions made by the Assessing Officer were deleted on merits for the year under consideration, and the assessee's appeal was allowed.