https://www.taxtmi.com/caselaws?id=65479 Receipts from an affiliated concern were treated as cost-based payments under the production sharing contract, with no material showing any profit element; the section 44BB addition was therefore unsustainable. On the treaty issue, the record did not establish a permanent establishment in India under Article 5(2) of the India-USA DTAA, so Article 7 confined taxation of business profits to the State of residence. The analysis also noted that, even otherwise, the record did not show taxable profits in India after allowing corresponding expenditure, and the receipts could not be taxed in India as business profits. en-us Fri, 24 Oct 2008 00:00:00 +0530 Thu, 16 Nov 2023 17:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65479 Receipts from an affiliated concern were treated as cost-based payments under the production sharing contract, with no material showing any profit element; the section 44BB addition was therefore unsustainable. On the treaty issue, the record did not establish a permanent establishment in India under Article 5(2) of the India-USA DTAA, so Article 7 confined taxation of business profits to the State of residence. The analysis also noted that, even otherwise, the record did not show taxable profits in India after allowing corresponding expenditure, and the receipts could not be taxed in India as business profits. Case-Laws Income Tax Fri, 24 Oct 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65479