https://www.taxtmi.com/caselaws?id=311747 A liaison office is treated as a permanent establishment under the India-Japan tax treaty only where the record shows independent business operations or authority to negotiate and conclude contracts in India; where it performs only preparatory, auxiliary, liaison, or representative functions under head office instructions, no permanent establishment arises. On the facts discussed, no independent material established that the office exceeded its permitted role, so the treaty PE test was not met. Interest under section 234B was also held not sustainable, following earlier year precedent. The assessee therefore succeeded on the substantive treaty issue and the revenue's related challenges became academic. en-us Fri, 27 Apr 2018 00:00:00 +0530 Thu, 11 Jan 2024 09:26:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311747 A liaison office is treated as a permanent establishment under the India-Japan tax treaty only where the record shows independent business operations or authority to negotiate and conclude contracts in India; where it performs only preparatory, auxiliary, liaison, or representative functions under head office instructions, no permanent establishment arises. On the facts discussed, no independent material established that the office exceeded its permitted role, so the treaty PE test was not met. Interest under section 234B was also held not sustainable, following earlier year precedent. The assessee therefore succeeded on the substantive treaty issue and the revenue's related challenges became academic. Case-Laws Income Tax Fri, 27 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311747