GIL Mauritius Holdings Ltd. v. Dy. DIT (IT) (2018) 196 TTJ 896 (Delhi)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-For considering the permanent establishment in Article 5(2)(i) the threshold duration is 9 months-Income is not chargeable to tax in India-DTAA-India–Mauritius. [S. 90, Art. 5(2)(i), 7]

It has been held by the appellate Tribunal that PE establishment in Article 5(2)(i) of DTAA between India and Mauritius, the threshold duration is 9 months. Contract duration of both contracts are less than the said threshold and therefore, assessee does not have a PE as per that Article. Income is not chargeable to tax in India. (AY. 2006-07)