Assessee is a company incorporated and a tax resident of Cyprus. The assessee was awarded a contract in relation to development of gas fields located offshore in East Coast of India. The AO held that the assessee had a PE in India. Tribunal held that since assessee’s activities in India continued for a period of six month only, it did not constitute any PE in India. (AY. 2009-10)
Bellsea Ltd. v. DIT (IT) (2020) 182 ITD 420 (Delhi)(Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-Resident-Contract for development of gas fields-Construction activity continued in India for a period of six months only-No Permanent Establishment in India-DTAA-India-Cyprus. [Art. 5(a)(g)]