Held that as per art. 1 of memorandum of agency agreement, the appointment of the Indian subsidiary as agent was for the purpose of performing the functions as selling and purchasing agent for the export from Japan and the import into Japan of all kinds of goods. Article 1 itself mentions that the assessee-company as a principal reserves the right to quote price, place orders of the goods and otherwise deal directly with buyers and/or sellers located in the territory or visiting Japan from the territory, if all the actions of the assessee as principal, circumstances make it necessary advisable to do so. Because the nature of business of trading is a continuous flow of the business process, that cannot be a foundation to conclude a principal-agent relationship for the purpose of art. 5 of the DTAA. There is no PE of assessee in the form of ITPL.  (AY. 2017-18)