The assessee, a multi-state co-operative society registered in India, entered into a Joint Venture agreement with an Oman oil company to form OMIFCO. The assessee had a branch office in Oman and received dividend income from JV. The  Assessing Officer allowed tax credit in respect of said dividend income  aheld that  dividend income is exempt from tax.  Principal Commissioner  passed the revision order relying on  article 25(4) of DTAA  and  no tax credit was due to assessee under section 90 he also held that  that article 25 would not be applicable as there was no tax payable on dividend in Oman and thus, assessee would not be covered under exemption.   The ITAT quashed the revision order of the PCIT. On appeal the appeal of the Revenue was dismissed. On appeal by Revenue the Court held that  assessee’s establishment in Oman had been treated as PE from very inception. The   assessee had invested in project by setting up a PE in Oman and as JV was registered as a separate company under Omani laws, it was aiding to promote economic development within Oman and achieve object of article 8(bis) of Omani Tax Laws.  Since, article 8(bis) exempts dividend tax received by assessee from its PE in Oman and by virtue of article 25 of DTAA, assessee would be entitled to same tax treatment in India as it received in Oman.( 2010 -11, 2011-12 )