2006 (10) TMI 103

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....ent  Mr. A.N. Pahuja, DIT (International 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 Or....

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....mercial activity in India and will not earn any 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 quest....

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.... not give rise to any taxable income in India. 3. 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, ha....

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....fer of a capital asset situated in India. [Explanation 1]- For 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....