Permanent Establishment and Business Connection: foreign consultancy receipts not attributable where no fixed base or corporate veil piercing established.

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Full Text of the Document

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....The article explains that protective additions treating foreign consultancy receipts and foreign-group investments as the assessee's income were unsustainable where the tax authority failed to prove a Permanent Establishment or business connection in India, lacked evidence of a fixed base for independent personal services, and did not conduct requisite foreign-channel inquiries to pierce separate corporate personality. Consequently, receipts routed through foreign companies were not attributable as Fees for Technical Services or business income, and investments by foreign group companies could not be taxed as unexplained investments absent direct evidence of routing or control; the disputed additions were dismissed.....