The Full Bench is constituted to decide one of the questions arising in the petitions is whether any taxable income can be attributed to the Permanent Establishment (PE) in India if the overseas entity has incurred a loss in the relevant assessment year.  Assessee contended that in case enterprise at an entity level had suffered a loss in relevant assessment year, no profit or income attribution would be warranted insofar as PE in India would be concerned. Court held that Article 7(1) constructs clear dichotomy between profits that may be earned by an enterprise on a global scale and those which are attributable to a PE situate in contracting state. It becomes further evident from Article 7(2) which stipulates that where an enterprise carries on business through a PE in other Contracting State, profits would be liable to be attributed to that PE as if it were a distinct and separate enterprise engaged in similar activities and independent of enterprise of which it may be a part. Article 7(1) itself excludes profits of an enterprise from being subjected to tax till such time as such an entity carries on no business in other Contracting State through a PE. The  fact that a PE was conceived to be an independent taxable entity could not be questioned.  Article 7 cannot be viewed as restricting right of source State to allocate or attribute income to PE based on global income or loss that may have been earned or incurred by a cross border entity. Thus, where an assessee had a PE in India, it would be liable to pay tax on income attributable to that PE notwithstanding that assessee at an entity level had suffered a loss. The matters are placed before the appropriate Roster Bench for disposal of petitions.   (AY. 2009-10 to 2017-18)