https://www.taxtmi.com/caselaws?id=78186 Receipts for supplying expatriate technical personnel under an approved production sharing contract were treated as reimbursement on a pure cost basis, with no profit element. The Court stated that, in such circumstances, the treaty framework under article 7 of the Indo-US DTAA prevails over section 44BB where it is more beneficial, and business profits of a US enterprise are taxable in India only to the extent attributable to a permanent establishment. It also noted that reimbursement of actual expenses is not taxable income for that purpose. Separate earlier-year treatment did not create res judicata or estoppel in income-tax proceedings, so the assessee could contest taxability. en-us Fri, 11 Sep 2009 00:00:00 +0530 Sat, 29 Dec 2012 14:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78186 Receipts for supplying expatriate technical personnel under an approved production sharing contract were treated as reimbursement on a pure cost basis, with no profit element. The Court stated that, in such circumstances, the treaty framework under article 7 of the Indo-US DTAA prevails over section 44BB where it is more beneficial, and business profits of a US enterprise are taxable in India only to the extent attributable to a permanent establishment. It also noted that reimbursement of actual expenses is not taxable income for that purpose. Separate earlier-year treatment did not create res judicata or estoppel in income-tax proceedings, so the assessee could contest taxability. Case-Laws Income Tax Fri, 11 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78186