2002 (5) TMI 24

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....eal is directed against the order passed by the Income-tax Appellate Tribunal, dated October 4, 2001. The brief facts which are relevant to dispose of this appeal are recapitulated. The assessee has imported a certain number of printing machines from Rotomac (SPA), Italy, in February, 1987. It had earlier entered into an agreement dated October 9, 1986, with the Italian company for erection, assem....

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....t. before the State making the aforesaid remittance. The learned Commissioner of Income-tax (Appeals) set aside the order of the Assessing Officer and held as under: "If the remittance is clearly covered by article 15 of the agreement and if the period of stay of technicians does not exceed 90 days, then the amount is not to be taxed doubly in both the States and as such there is no question....

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....nt in that other State for a period or periods aggregating to 90 days in the relevant fiscal year; or (b) he has a fixed base regularly available to him in that other State for the purpose of performing his activities, but only so much of the income as is attributable to that fixed base. 2. The term 'professional services' includes independent scientific, literary, artistic, educational or t....

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....eign company, Rotomac (SPA), cannot be held to have a permanent establishment and since the period of stay of their technicians in India is not more than three months in each of the two years, in view of the provisions of article 15 read with article 5(2)(h) of the DTAA, the said company is not liable to pay tax in India. Incidentally, this view finds support from the Income-tax Appellate Tribunal....