2010 (2) TMI 1296

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....a 'permanent establishment in India' within the meaning of Article 5(2)(b) of the D.T.A agreement between India and Singapore (DTAA). The assessee's activities comprised of collecting and disseminating information available in the public domain with respect to various markets including equity market, fixed income market, commodity market, future and option market, for-ex market, derivatives and money market. The information is made available to various subscribers of the branch office in India. The information are transmitted through telephone lines or V-Sat on a continuous basis in the form of market data regarding prices and value of products relating to different markets, graphics like bar-chart, line, histogram, dot, cloud, ....

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....ons of Sec. 44D of the I.T. Act have to be applied, since 'business profit' of a permanent establishment is to be computed after allowing deductions of expenditure in accordance with the provisions and 'subject to the limitations of the Indian Taxation Law.' The AO also referred to AAR ruling P. No. 13 of 1995., In re [1997] 228 ITR 487  (AAR-New Delhi) in the case of a French company, wherein it was ruled that when receipts of royalty or fees for technical services are connected with the P.E., the income of the non-resident should be computed in accordance with Sec. 44D and entire receipts should be taxed on gross basis @ 20% in terms of Sec. 115A of the I.T. Act. The AO further held that although Sec. 245-S(i)(a) of t....

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....(A) further held that the interest u/s. 234B is not leviable since the assessee is a non-resident company and its entire income is tax deductible u/s. 195. 8. Aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before us. The Ld. Departmental Representative relied on the order of the AO. 9. The Ld. Counsel for the assessee Shri Nitesh Joshi placed before us the copy of the judgement of the I.T.AT Mumbai 'C' Bench in the case of Dy. CIT v. Boston Consulting Group Pte. Ltd. [2005] 94 ITD 31 wherein it has been held that "Assessee is a Singapore based company carrying out its business of strategy consulting services, such as strategy regarding business, marketing, sales, port folio etc. through its Permanent Establ....