Dismissing the appeal of the revenue the Court held that , the activities carried on by the liaison office of the non-resident in India as permitted by the RBI, demonstrate that the liaison office must steer away from engaging in any primary business activity and in establishing business connection as such. It can carry on activities of preparatory or auxiliary nature only. A liaison office which is only carrying on such activity of a “preparatory or auxiliary” character is not a PE in terms of Article 5 of the DTAA. The deeming provisions in Sections 5 and 9 of the 1961 Act can have no bearing whatsoever    .( CA N0 9775 of 2011 dt 24 -04 2020

( AY.2000-01 to 2003-04)