Held that only if profits accrued to the assessee to the extent they could be attributable to the assessee’s permanent establishment in India can be taxed. The assesseee incurred loss hence the Assessing Officer is directed to delete the addition.(AY.2018-19, 2019-20)
Hitachi Ltd. v. ACIT (IT) (2024) 116 ITR 393 / [2025] 171 taxmann.com 226 (Delhi)(Trib)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-Resident of Japan-Incurred loss-Only profits earned by Permanent Establishment in India is liable to tax-Addition is deleted-DTAA-India-Japan.[Art.7]