The assessee claimed that it is a Branch  of its German Company viz. EOS Gmbh. For the relevant assessment year the assessee filed its return in capacity of PE of EOS Gmbh. AO is of the view that the assessee is involved in identifying  potential customers and marketing of business by explaining  product profile, product feature, its utility and application in India. Since all activities like purchase, sales operations, services were carried out by assessee in India a show cause notice was issued  as to why 100 per cent of global profits earned from sales in India by EOS Germany  should not be attributed to assessee and brought to tax. Assessee filed the writ petition challenging the said notice stating that it was operating as PE in India because  profits from sales in India by EOS Germany  through critical functions such as R& D, manufacture, sales strategy, pricing , negotiation etc, were performed by EOS Germany and not Indian Branch . Court held that many factual disputes went to root of matter viz. nature of activities carried on by assessee, existed between the parties, therefore  unless and until aforesaid factual disputes were settled by appreciation of factual aspects of matter by a fact finding authority, question whether  income at hands of assessee was to be treated as income earned in India and liable to tax could not be decided in writ proceedings. Accordingly the court directed the petitioner file objections before DRP. (AY. 2016-17)