Held that the transactions between the assessee and IBM Philippines were in the course of its business and this had not been disputed by the Revenue and had no permanent establishment in India. Hence, the payments received by IBM Philippines would not be liable for deduction of tax at source under section 195 of the Act. (AY.2011-12)
DIT (IT) v. IBM India Pvt. Ltd. (2023)458 ITR 86 /149 taxmann.com 185 (Kar.)(HC)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Indian firm sub-contracting work to firm in Philippines-No permanent establishment in India-Not liable to deduct tax at source. DTAA-India-Philippines. [S. 195, Art. 7(1), 23]