Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
The dominant issue was whether the foreign taxpayer had a PE/deemed PE in India under Article 5 of the India-UK DTAA so as to tax receipts from offshore supply of equipment and standard software. The Tribunal held that the burden to establish a PE lies on the AO, and a mere assumption without examining Article 5 conditions, identifying the alleged PE, or recording reasons does not discharge that onus; consequently, PE was not proved and PE-based taxation failed. It further held that where title transfer and consideration for offshore supply occur outside India and no related activities are carried out in India, such receipts are not taxable in India; accordingly, the offshore supply receipts were held not taxable in India. - ITAT
The dominant issue was whether the foreign taxpayer had a PE/deemed PE in India under Article 5 of the India-UK DTAA so as to tax receipts from offshore supply of equipment and standard software. The Tribunal held that the burden to establish a PE lies on the AO, and a mere assumption without examining Article 5 conditions, identifying the alleged PE, or recording reasons does not discharge that onus; consequently, PE was not proved and PE-based taxation failed. It further held that where title transfer and consideration for offshore supply occur outside India and no related activities are carried out in India, such receipts are not taxable in India; accordingly, the offshore supply receipts were held not taxable in India. - ITAT
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