https://www.taxtmi.com/caselaws?id=234508 Where an Indian branch and its German head office followed a genuine fee-splitting arrangement for inspection, survey and certification work, only the profits attributable to the permanent establishment were taxable in India under the India-Germany DTAA; the head office's retained share was therefore not taxable in the assessee's hands and the related addition was deleted. Amounts remitted towards head office expenses and connected payments, being part of the same treaty-based attribution structure, could not be added under section 40A(2)(b) either; that disallowance was also deleted. The accepted allocation reflected the respective functions of the branch and head office, giving complete relief to the assessee. en-us Wed, 05 Jun 2013 00:00:00 +0530 Sat, 08 Jun 2013 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234508 Where an Indian branch and its German head office followed a genuine fee-splitting arrangement for inspection, survey and certification work, only the profits attributable to the permanent establishment were taxable in India under the India-Germany DTAA; the head office's retained share was therefore not taxable in the assessee's hands and the related addition was deleted. Amounts remitted towards head office expenses and connected payments, being part of the same treaty-based attribution structure, could not be added under section 40A(2)(b) either; that disallowance was also deleted. The accepted allocation reflected the respective functions of the branch and head office, giving complete relief to the assessee. Case-Laws Income Tax Wed, 05 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234508