{"id":62185,"date":"2026-07-18T15:29:50","date_gmt":"2026-07-18T09:59:50","guid":{"rendered":"https:\/\/itatonline.org\/digest\/clifford-chance-pte-ltd-v-acit-2025-132-itr-470-delhi-trib\/"},"modified":"2026-07-18T15:29:50","modified_gmt":"2026-07-18T09:59:50","slug":"clifford-chance-pte-ltd-v-acit-2025-132-itr-470-delhi-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/clifford-chance-pte-ltd-v-acit-2025-132-itr-470-delhi-trib\/","title":{"rendered":"Clifford Chance Pte. Ltd. v. ACIT (2025) 132 ITR 470 (Delhi) (Trib.)"},"content":{"rendered":"<p style=\"margin: 0in;margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: &#039;Verdana&#039;,sans-serif\">The assessee, a Singapore tax resident providing legal advisory services, had its business profits taxed in India on the ground of having a service and virtual service PE in India based on physical presence of its employees, with 100 per cent. of gross receipts attributed thereto. On appeal, the Tribunal held that, applying article 5(6)(a) of the India-Singapore DTAA, actual physical rendition of service in India is essential for constituting a service PE, and after excluding vacation days, business development days and common days from the employees&#8217; presence of 120 days in the first year (with no employees present in the second year), services were furnished for only 44 days, well below the 90-day threshold, so that no service PE existed in either year; it further held that the concept of a virtual service PE, though discussed in the OECD&#8217;s 2018 interim report, finds no place in the India-Singapore Agreement and has not been officially endorsed in India, so that the existing treaty requirement of physical rendition of service alone applies, and consequently the business profits were not taxable in India in the absence of any PE. On ancillary issues, the Tribunal remanded the levy of interest under section 234A for verification of the actual date of filing of return against the extended due date; deleted the interest levied under section 234B since the income was received after TDS; and directed AO to verify the assessee\u2019s claim of non-receipt of certain amounts reflected in Form 26AS and grant corresponding credit for TDS if the claim was found correct. (AY. 2020-21 &amp; 2021-22)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Non-resident-Permanent establishment-Service permanent establishment-Employees required to be physically present and furnish services in India exceeding 90 days (or 30 days for related enterprises) in a fiscal year-Services furnished only for 44 days after excluding vacation, business development and common days-No service permanent establishment-Business profits not taxable in India.-Virtual service permanent establishment-Concept not provided under Double Taxation Avoidance Agreement or officially endorsed in India-Requirement of physical rendition of service alone to be applied-Return-Delay in filing-Interest-Assessee contending return filed within extended due date-Matter remanded for verification-Interest-Advance tax-Income received after deduction of tax at source-Levy of interest for failure to pay advance tax not called for-Income-Accrual-Amounts appearing in Form 26AS cannot automatically be treated as income-Assessing Officer to verify and grant corresponding credit of tax deducted at source if payments not actually received. DTAA-India-Singapore. [S. 4, 5 , 234A , 234B Art. 5(6) ,  Form No 26AS] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62185","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gaZ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62185","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=62185"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62185\/revisions"}],"predecessor-version":[{"id":62186,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62185\/revisions\/62186"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}