2021 (9) TMI 1050

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....'ITAT'] in ITA No. 1846/Del/2014 whereby the appeal of the respondent-assessee was allowed for Assessment Year 2005-06. 2. The questions of law proposed by the appellant-revenue in the present appeal are as under:- A. "Whether on facts and in the circumstances of the case, the Ld. ITAT erred in law in quashing the assessment proceedings in the case of assessee without appreciating the facts the assessee has a business connection in India under Section 9(1)(i) of the Income Tax Act, 1961 and has a PE, in the form of M/s L.G. Electronics India Ltd. under Article 5(1) & 5(2) of DTAA between India and Indonesia? B. Whether on facts and in the circumstances of the case, the Ld. ITAT erred in law in holding that no income is ....

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....on, who is a non-resident in terms of Section 5(2) of the Act to the extent it is received or deemed to be received in India, or accrued or arisen or deemed to have accrued or arisen in India is taxable in India. He states that Section 9(1) of the Act prescribes that all income accruing or arising, whether directly or indirectly through or from any business connection in India shall be deemed to accrue or arise in India. He further states that the ITAT erred in holding that the transactions between the assessee and LGEIL were at arm's length. 6. Admittedly, during the pendency of the present proceedings, the Supreme Court quashed another set of re-assessment proceedings initiated in the case of foreign AEs consequent to TDS survey co....