https://www.taxtmi.com/caselaws?id=459469 ITAT Bangalore held that a foreign entity did not have a permanent establishment in India where sales were conducted through distributors. The assessee's Indian marketing team only educated customers about products, while distributors negotiated prices and placed orders. The team lacked authority to conclude contracts on behalf of the foreign entity. The AO failed to provide sufficient evidence establishing PE existence. Following Net App B.V precedent with similar circumstances, the Tribunal ruled that marketing support services without contract conclusion authority do not constitute PE. Appeal allowed. en-us Fri, 25 Aug 2023 00:00:00 +0530 Sat, 14 Dec 2024 14:21:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459469 ITAT Bangalore held that a foreign entity did not have a permanent establishment in India where sales were conducted through distributors. The assessee's Indian marketing team only educated customers about products, while distributors negotiated prices and placed orders. The team lacked authority to conclude contracts on behalf of the foreign entity. The AO failed to provide sufficient evidence establishing PE existence. Following Net App B.V precedent with similar circumstances, the Tribunal ruled that marketing support services without contract conclusion authority do not constitute PE. Appeal allowed. Case-Laws Income Tax Fri, 25 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459469