TaxTMI 
TaxTMI 
2023 (1) TMI 952
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.... assessee submitted at the outset that ground no. 7 of the appeal is the effective ground and if the said ground is decided in favour of the assessee, the other grounds would become infructuous. Therefore, at this stage he would be confining his submissions to ground no.7 of the appeal only. 3. The ground no. 7 raised in appeal by the assessee reads as under: " On the facts and in the circumstances of the case and in law, the learned AO as well as the Hon'ble DRP erred in holding that Warner Bros. Pictures (India) Pvt. Ltd. is a Dependent Agent Permanent Establishment of the appellant, consciously ignoring Hon'ble DRP's own directions for AY 2010-11 to AY 2012-13, binding orders of this Hon'ble Tribunal for AY 2006-07 in the case of appe....
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....to the assessee holding that the assessee has no PE in India. The facts in AY 2019-20 are identical to the facts in preceding years, therefore, following earlier decisions of the Tribunal, the addition be deleted. The learned AR furnished the orders of the Tribunal in assessee's own case in preceding assessment years. The details of appeal filed by the assessee in preceding assessment years is tabulated as under: Sr. No. Assessment Year ITA No. Decided on 1 2006-07 ITA NO.3160/MUM/2010 30/12/2011 2 2007-08 ITA NO.8734/MUM/2010 10/10/2012 3 2008-09 ITA NO.8627/MUM/2010 22/02/2013 4 2009-10 ITA NO.7553/MUM/2010 05/03/2014 5 2010-11 ITA NO.1405/MUM/2010 27/10/2016 6 2011-12 ITA NO.1615/MUM/2010 0....
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....reement. During the period, relevant to assessment year under appeal, the assessee received Rs.39,19,73,663/- in the nature of royalty income from Warner Bros. Pictures (India) Pvt. Ltd. The assessee claimed the aforesaid "Royalty Income" as exempt under the Act as well as under India US Double Tax Avoidance Agreement (DTAA). The case of the assessee is that Warner Bros. Pictures (India) Pvt. Ltd. is not an agency PE of the assessee in India. In fact, the assessee has no PE, therefore, the royalty income is not taxable in India. The learned AR of the assessee asserted that the issue in appeal by the assessee is squarely covered by the decision of Tribunal in assessee's own case in the preceding assessment years. 8. We find that the Tribuna....
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....lishment. 11) We have examined this aspect also. As rightly held by the CIT (A) even if income arises to the Non-Resident due to the business connection in India, the income accruing or arising out of such business connection can only be taxed to the extent of the activities attributed to permanent establishment. In this case, the assessee does not have any permanent establishment in India. Since the Indian company who obtained the rights is acting independently. Agency PE provisions are not applicable to the assessee company The assessee relied on the decision of Ishikawajma Harima Heavy Industries Ltd vs. Director of Income Tax 2007-(158)-TAXMAN 0259-SC that incomes arising to a Non-Resident cannot be taxed as business income in India, ....