https://www.taxtmi.com/highlights?id=94017 The ITAT held that the taxpayer's liaison office (LO) in India did not constitute a permanent establishment (PE) under Article 5 of the India-Netherlands DTAA, read with the MLI, because the LO's activities were preparatory or auxiliary and no cohesive business operation was carried out in India by a subsidiary or the LO that would attribute income to the taxpayer. The Tribunal found no evidence that LO personnel had authority to conclude contracts or that information collected was used by an active PE in India; the revenue's expectation to prove a negative was untenable. Consistent with SC precedent, the adhoc income addition premised on a PE finding was deleted. en-us Mon, 10 Nov 2025 08:56:06 +0530 Mon, 10 Nov 2025 08:56:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=94017 The ITAT held that the taxpayer's liaison office (LO) in India did not constitute a permanent establishment (PE) under Article 5 of the India-Netherlands DTAA, read with the MLI, because the LO's activities were preparatory or auxiliary and no cohesive business operation was carried out in India by a subsidiary or the LO that would attribute income to the taxpayer. The Tribunal found no evidence that LO personnel had authority to conclude contracts or that information collected was used by an active PE in India; the revenue's expectation to prove a negative was untenable. Consistent with SC precedent, the adhoc income addition premised on a PE finding was deleted. Highlights Income Tax Mon, 10 Nov 2025 08:56:06 +0530 https://www.taxtmi.com/highlights?id=94017