The assessee was an Indian company with branch offices in UAE and Qatar. The assessee had earned profits aggregating to Rs. 11.91 crores in these branches, which, for the purposes of the provisions of the respective tax treaties, constituted permanent establishments. The AO included the aggregate of profits earned by assessee’s branches in UAE and Qatar in the total income of the assessee. On appeal the assessee contended that that the Assessing Officer ought to have excluded profits earned by assessee’s branches in UAE and Qatar from total income chargeable to tax in the hands of the assessee in India on the ground that once an income of an Indian assessee is taxable in the treaty partner source jurisdiction under a treaty provision, the same cannot be included in its total income taxable in India as well i.e. the residence jurisdiction. Tribunal held that earnings of assessee, an Indian company from branch offices in UAE and Qatar are to be included in assessee’s taxable income in India. (AY. 2014-15)
Technimont (P.) Ltd. v. ACIT (2020) 184 ITD 474 / (2021) 197 DTR 121 / 209 TTJ 287 (Mum.)(Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Earning from branch offices in UAE and Qatar are to be included in assessee’s taxable income in India-DTAA-India-Qatar. [S. 90(3), 297(2)(k), Art. 7]