https://www.taxtmi.com/highlights?id=90372 The ITAT held that the assessee, engaged in reinsurance, does not constitute a permanent establishment (PE) in India under the modified Article 5 of the MLI between India and Ireland. Despite the revenue's contention that the assessee and a related enterprise carried out complementary functions amounting to a cohesive business operation in India, the tribunal found no business activities or presence in India, including no premises or acceptance of risk within India. Consequently, the anti-fragmentation rule under the MLI, designed to prevent abuse of preparatory or auxiliary activity exemptions, was inapplicable. The tribunal concluded that the assessee's income was not taxable in India due to the absence of a PE, ruling in favor of the assessee. en-us Fri, 11 Jul 2025 08:39:54 +0530 Fri, 11 Jul 2025 08:39:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=90372 The ITAT held that the assessee, engaged in reinsurance, does not constitute a permanent establishment (PE) in India under the modified Article 5 of the MLI between India and Ireland. Despite the revenue's contention that the assessee and a related enterprise carried out complementary functions amounting to a cohesive business operation in India, the tribunal found no business activities or presence in India, including no premises or acceptance of risk within India. Consequently, the anti-fragmentation rule under the MLI, designed to prevent abuse of preparatory or auxiliary activity exemptions, was inapplicable. The tribunal concluded that the assessee's income was not taxable in India due to the absence of a PE, ruling in favor of the assessee. Highlights Income Tax Fri, 11 Jul 2025 08:39:54 +0530 https://www.taxtmi.com/highlights?id=90372