Assessee is a company incorporated in Japan and has opened a Liaison office in India seeking RBI approval. Assessee declared nil income in its return of income. AO held that assessee\u2019s LO constituted a PE under article 5 of India-Japan DTAA as it had a full fledged office with employees and staff. AO also referred to an agreement between assessee\u2019s LO and LG Chemicals Ltd, Korea for granting exclusive and non-transferrable right to distribute chemicals products on commission basis. Tribunal noted that the agreement was valid upto December 1996 and it did not pertain to the year under consideration. Further, the co-ordinate bench of the tribunal in its own case for earlier years held that LO did not constitute a PE of the assessee in India and the LO was performing activities in accordance with permission granted by RBI. Hence, relying on the earlier year order it was held that LO did not constitute PE of the assessee under Article 5 of India-Japan DTAA.\u00a0 (AY.2002-03)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(i) : Income deemed to accrue or arise in India\u2013Permanent establishment\u2013Liaison office of assessee did not constitute PE-Income is not chargeable to tax in India. [Art. 5]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10519","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2JF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10519"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10519\/revisions"}],"predecessor-version":[{"id":19710,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10519\/revisions\/19710"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}