2023 (1) TMI 1416

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..... 32649/2020, ITA 219/2020, CM APPL. 32650/2020 & CM APPL. 32652/2020, ITA 140/2021, CM APPL. 30258/2021, CM APPL. 30259/2021 & CM APPL. 30260/2021, ITA 36/2022 & CM APPL. 11636/2022 - -<br>Income Tax<br>Hon&#39;ble Mr. Justice Vibhu Bakhru And Hon&#39;ble Mr. Justice Amit Mahajan For the Petitioners : Mr. S. Ganesh, Sr. Adv. with Mr. U.A. Rana & Mr. Himanshu Mehta, Advs. For the Respondents....

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....ary for taxing the income of a permanent establishment in India as an independent assessee. 4. According to the respondent, notwithstanding that an overseas entity incurs a loss, if there is positive income attributable to the PE, the same would be taxable notwithstanding Article 7(1) of the DTAA. 5. Mr. Ganesh submits that the aforesaid questions are squarely covered by the decision of the ....

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....lity would arise qua the respondent/assessee only if profits accrue to the respondent/assessee, and that too only to the extent they can be attributed to its PE in India." 6. He submits that in view of the said decision, the question whether any taxable income could be attributed to PE, would not arise in the event, the assessee incurs a loss. 7. It is noted that although the observations ma....

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....incurring a loss, the profits generated by the establishment, if otherwise chargeable under the Income Tax Act, would be required to be assessed and taxed. 10. In this view, we are inclined to observe that the aforesaid issue be referred to a larger Bench. 11. Mr. S. Ganesh submits that there are other questions which arise in the present appeal and if those are decided in favour of the asse....