Marketing support and subcontracted client contracts: no agency permanent establishment under Article 5 DTAA; arm's-length pricing bars profit attribution.

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....Whether the foreign enterprise had a PE in India under Article 5 of the India-USA DTAA and could be taxed by attributing income was decided against the Revenue. On facts, the Revenue failed to show furnishing of services in India or secondment of employees, and the Indian entity merely performed marketing/support with client contracts assigned/sub-contracted, without authority to conclude contracts or habitually secure orders for the foreign enterprise; customers were located outside India. Consequently, the conditions for an agency PE were not satisfied and no PE existed. In any event, applying the arm's length principle, where dealings are at ALP no further profit attribution arises. The appeals were dismissed for want of any substantial question of law - HC....