Human-probability test defeats political donation deductions where banking records mask accommodation-entry fund layering rather than genuine contribu...
For AY 2020-21, the Multilateral Instrument could not be used, including through its purpose or spirit, to determine a permanent establishment under the India-UK DTAA; Article 5 applicable for that year controlled. Dependent-agent, fixed-place and service PE status required fact-specific examination of contracts and conduct, including order solicitation, negotiation, pricing, credit risk, contractual obligations and performance; an Indian associated enterprise alone was insufficient, and Revenue bore the burden of proof. If a PE is established, profit attribution requires a functions, assets and risks analysis; arm's-length remuneration does not itself resolve PE status, and ad hoc attribution based on prior years is impermissible. PE and attribution required fresh determination. Section 153 governed the draft order, while final DRP-directed orders were governed by section 144C. No deviation from DRP directions was identified.
For AY 2020-21, the Multilateral Instrument could not be used, including through its purpose or spirit, to determine a permanent establishment under the India-UK DTAA; Article 5 applicable for that year controlled. Dependent-agent, fixed-place and service PE status required fact-specific examination of contracts and conduct, including order solicitation, negotiation, pricing, credit risk, contractual obligations and performance; an Indian associated enterprise alone was insufficient, and Revenue bore the burden of proof. If a PE is established, profit attribution requires a functions, assets and risks analysis; arm's-length remuneration does not itself resolve PE status, and ad hoc attribution based on prior years is impermissible. PE and attribution required fresh determination. Section 153 governed the draft order, while final DRP-directed orders were governed by section 144C. No deviation from DRP directions was identified.
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TaxTMI 
TaxTMI 
of 4921 
