TaxTMI 
TaxTMI 
2006 (10) TMI 103
X X X X Extracts X X X X
X X X X Extracts X X X X
....nternational Tax) Present for the Applicant Mr. K. M. Sundram, FCA RULING (By Mr. Justice Syed Shah Mohammed Quadri) - This is an application under Section 245Q(1) of the Income tax Act, 1961 (for short "the Act"). The applicant, M/s Angel Garments Ltd., Hong Kong, is a non-resident company. It is incorporated under the Companies Ordinance of Hong Kong and is having its re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny income in India. It will not have any power or authority to enter into any contract for sale or any other contract to earn income in India . The entire expenses of the proposed liaison office shall be met through remittances from applicant's head office at Hong Kong. On the basis of these facts the applicant has set-forth the following question to seek advance ruling of the Authority :- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Mr. K. M. Sundram, learned FCA appearing for the applicant, submits that the case of the applicant is covered by clause (b) of explanation 1 to Section 9(1)(i) of the Act and therefore no taxable income accrues or arises to the applicant in India. Mr. A.N. Pahuja, DIT (International Tax), Chennai, who appears for the Commissioner, has conceded the position and submits that in view of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the purposes of this clause - x x x x x in the case of a non-resident, no income shall be deemed to accrue or arise in India to him through or from operations which are confined to the purchase of goods in India for the purpose of export; to (d) x x x x x x x A plain reading of the provisions, extracted above, would show that no income shall be deemed to accrue or arise to a non-resident ....