Allowing the petitions the Court held that in the reasons recorded for initiating reassessment proceedings under section\u00a0147, the Deputy Commissioner (IT) had placed the assessee in all three categories of permanent establishments, namely, service permanent establishment, fixed place permanent establishment and dependent agent permanent establishment.. Court held that there is no finding that enterprise rendering services within India through employees of\u00a0 subsidiary or\u00a0 other personnel hence the ingredient is\u00a0 not satisfied therefore\u00a0 no creation of Permanent Establishment. \u00a0Non-Existence of\u00a0 material to show Indian subsidiary authorised to or\u00a0 concluded any contracts for and on behalf of\u00a0 assessee hence\u00a0 not dependent agent Permanent Establishment. \u00a0Discovery of assessee\u2019s seal during survey irrelevant. Onus on department to establish existence of\u00a0 Permanent Establishment. \u00a0Statements recorded during Survey not evidencing existence of\u00a0 Permanent Establishment. \u00a0Indian subsidiary providing communication and consultancy support. Activities undertaken not beyond being preparatory or auxiliary. Revenue has\u00a0 not established with commonality of\u00a0 general purpose.Finding that Indian Subsidiary Permanent Establishment of assessee is\u00a0 unsustainable \u00a0DTAA. \u00a0Disposal, Control Virtual Projection and alter eg. India-United States of America\u00a0 \u00a0(AY.2012-13 to 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-Non-Resident-Permanent Establishment-Transactions found to be at arm\u2019s length-Supplying materials through direct imports to Indian Railways-Allegation of wholly owned subsidiary-No material to prove conclusively that Indian Subsidiary\u2019s place assessee\u2019s Permanent Establishment falling in any of three Categories. Petition is allowed. Liberty is given to Department to independently examine whether Delhi Office of assessee a Permanent Establishment or service Permanent Establishment-DTAA-India-USA. [S.92CA, 133A, 148, Art.5(1), 5(2), 5(3), 5(4)] <\/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":[21],"tags":[],"class_list":["post-47625","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-co9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47625","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=47625"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47625\/revisions"}],"predecessor-version":[{"id":47626,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47625\/revisions\/47626"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}