Only activities through which the assessee had earned income is with respect to DPIR and engineering services which was carried from outside India and if none of the other activities of clause as given agreement have come into force during this year, then holding that entire income earned during the year was from any hypothetical fixed placed of business of PE would be erroneous. It is in the nature of FTS which is to be taxed in accordance with Article 13(4) of India-Spain DTAA. (AY. 2007-08)
Idiada Automotive Technology v. Dy.CIT (2020) 206 TTJ 114 (Delhi)(Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-No Permanent Establishment during relevant assessment year for activities relating from which Assessee had earned revenue-could not be taxed as business profit carried out through PE in India-Appeal Allowed-DTAA-India-Spain. [S. 90, Art. 13(4)]