https://www.taxtmi.com/caselaws?id=399960 ITAT Delhi held that Mitsui India Pvt. Ltd. did not constitute a dependent agent PE under Article 5(7) of the India-Japan DTAA because it lacked authority to conclude contracts, did not maintain stock for delivery, and did not habitually secure orders for the foreign enterprise. As no PE existed, no separate profit attribution in India could survive, particularly where the related transactions had already been accepted at arm's length in transfer pricing proceedings. The commission paid to Mitsui India Pvt. Ltd. was also accepted as arm's length, making the proposed disallowance unsustainable and academic. en-us Tue, 20 Oct 2020 00:00:00 +0530 Tue, 05 Nov 2024 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399960 ITAT Delhi held that Mitsui India Pvt. Ltd. did not constitute a dependent agent PE under Article 5(7) of the India-Japan DTAA because it lacked authority to conclude contracts, did not maintain stock for delivery, and did not habitually secure orders for the foreign enterprise. As no PE existed, no separate profit attribution in India could survive, particularly where the related transactions had already been accepted at arm's length in transfer pricing proceedings. The commission paid to Mitsui India Pvt. Ltd. was also accepted as arm's length, making the proposed disallowance unsustainable and academic. Case-Laws Income Tax Tue, 20 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399960