https://www.taxtmi.com/caselaws?id=185683 Business profits of a foreign enterprise may be taxed in India only to the extent they are shown, on evidence, to be attributable to its permanent establishment in India. Under Article 7 of the India-Korea tax treaty, attribution must reflect the profits the permanent establishment could be expected to earn as a distinct and separate enterprise. The revenue failed to prove that 25 per cent of the gross receipts was earned through the Indian permanent establishment or that the allocation had any factual basis, so an arbitrary apportionment was impermissible. Accordingly, taxation of that portion of the receipts in India was unsustainable. en-us Fri, 27 Dec 2013 00:00:00 +0530 Mon, 26 Sep 2016 13:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185683 Business profits of a foreign enterprise may be taxed in India only to the extent they are shown, on evidence, to be attributable to its permanent establishment in India. Under Article 7 of the India-Korea tax treaty, attribution must reflect the profits the permanent establishment could be expected to earn as a distinct and separate enterprise. The revenue failed to prove that 25 per cent of the gross receipts was earned through the Indian permanent establishment or that the allocation had any factual basis, so an arbitrary apportionment was impermissible. Accordingly, taxation of that portion of the receipts in India was unsustainable. Case-Laws Income Tax Fri, 27 Dec 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185683