Held that non-levy or short levy of taxes on hypothetical profits of DAPE, independent of taxability of dependent agent, could not be said to be prejudicial to interest of revenue, as long as dependent agent had been paid an arm’s length remuneration for services performed. (AY. 2017-18)
MFE Formwork Technology Sdn Bhd v. DCIT(IT) (2022) 197 ITD 282 / 219 TTJ 450 (Mum.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Permanent establishment-Non-levy or short levy of taxes-Amount paid to dependent agent at arm’s length remuneration for services performed-Revision is not valid-.-DTAA-India-Malaysia. [S. 9(1)(i), Art. 5, 7]