Non-resident sales commission, royalty under sections 44DA and 115A, and 271AA penalty held not taxable in India

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....ITAT held that commission received by the assessee, a non-resident group entity, for global sales support services rendered to its Indian affiliate is not taxable in India, as no PE or business connection in India was established and all framework agreements and services were executed outside India. Consequently, attribution of 35% of such commission to India was rejected. ITAT further held that royalty income could not be taxed as business income under s.44DA, as the provision applies only where royalty is effectively connected with a PE in India, which was absent; tax already deducted and offered under s.115A was accepted and transfer pricing adjustments deleted. Penalty u/s 271AA for alleged non-disclosure of certain international transa.........