2016 (1) TMI 1106

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....re. 2. On the facts and circumstances of the case and in law, the ld. CIT(A) erred in holding that the assessee does not have permanent establishment in India. 3. The appellant prays to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal." 2. Brief facts of the case are as under: The assessee filed its return declaring nil income on 28.12.06. The return was filed in response to the notice u/s 142(1) of the Act on 04.01.06. Accordingly, notices u/s 143(2) of the Act was issued. The assessee is a liaison office in India of company incorporated in Israel. In Israel the company is engaged in the development, manufacture and sale of Internet Traffic Management Solution under the style and name ....

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....company incorporated in India known as Radware Limited which is an Israel Company. In Israel, the company is engaged in the development, manufacture and sale of Internet Traffic Management Solution. The ld. AR further submitted that Indian liaison office is undertaking solely liaison activities, and are acting purely as a communication channel between its head office in Israel, and parties in India. The ld. AR stated across the bar that the assessee is not carrying on any activity of a trading, commercial or industrial in nature, and does not have any business income arising in India. 6.2. The ld. AR further submitted that, it is an undisputed fact that the company from Israel makes all the sales through the distributors directly from Isra....

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....ook, the arguments advanced by both the parties and the judgment of the Hon'ble Delhi High Court relied upon by the ld.AR . 8.1. We observe that the decision of the Jurisdictional High Court in the case of UAE Exchange Centre Limited (supra) covers the issue which needs to be considered in the present appeal. We have observed from the findings of the ld. CIT(A) that the assessee has been involved in supplying the literature relating to marketing and sales without any participation in actual sales activity. The Israeli company is selling the products to the distributors as per the requirements directly from Israel, and also makes efforts to services and maintain products used within the territory, which are sold directly by the Israeli comp....