https://www.taxtmi.com/caselaws?id=123058 Under the Indo-French tax treaty, section 90 gives the treaty priority to the extent it is more beneficial to the assessee. Business profits of a non-resident enterprise are taxable in India only to the extent attributable to a permanent establishment, while fees for technical services are taxable only where the services make available technical knowledge, experience, skill, know-how or processes, or involve development and transfer of technical plans or designs. A reimbursement of head-office technical expenses allocated to the Indian branch was treated as reimbursement, not consideration for specific technical services, and was not shown to be income attributable to the permanent establishment. The addition was therefore deleted and the departmental appeal failed. en-us Thu, 29 Oct 2009 00:00:00 +0530 Sat, 01 Sep 2012 10:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=123058 Under the Indo-French tax treaty, section 90 gives the treaty priority to the extent it is more beneficial to the assessee. Business profits of a non-resident enterprise are taxable in India only to the extent attributable to a permanent establishment, while fees for technical services are taxable only where the services make available technical knowledge, experience, skill, know-how or processes, or involve development and transfer of technical plans or designs. A reimbursement of head-office technical expenses allocated to the Indian branch was treated as reimbursement, not consideration for specific technical services, and was not shown to be income attributable to the permanent establishment. The addition was therefore deleted and the departmental appeal failed. Case-Laws Income Tax Thu, 29 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=123058