https://www.taxtmi.com/caselaws?id=236068 A permanent establishment cannot be inferred merely from common ownership, common directors, or related-party dealings; where the assessee transacted with Indian clients on a principle-to-principle basis and did not act on behalf of the foreign enterprise, no PE arose and no withholding obligation attached, so the first disallowance was deleted. The payment described as reimbursement for use of a third-party server platform and software licence required verification of its true contractual character and tax incidence; because the record was insufficient, the matter was remitted to the Assessing Officer for fresh consideration, leaving that issue open. en-us Fri, 26 Jul 2013 00:00:00 +0530 Tue, 13 Aug 2013 13:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=236068 A permanent establishment cannot be inferred merely from common ownership, common directors, or related-party dealings; where the assessee transacted with Indian clients on a principle-to-principle basis and did not act on behalf of the foreign enterprise, no PE arose and no withholding obligation attached, so the first disallowance was deleted. The payment described as reimbursement for use of a third-party server platform and software licence required verification of its true contractual character and tax incidence; because the record was insufficient, the matter was remitted to the Assessing Officer for fresh consideration, leaving that issue open. Case-Laws Income Tax Fri, 26 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=236068