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This is an appeal filed by the assessee on the ground that on the facts and circumstances of the case and in law, the learned CIT(A)-XXIX, New Delhi [hereinafter referred to as ‘the learned CIT(A)’] has erred in upholding that the appellant constitutes a PE in India under art. 5 of the India-USA Double Taxation Avoidance Agreement (‘India-US DTAA’) for asst. yr. 2002-03.

Shanti Prime Publication Pvt. Ltd.

Sec. 9 of Income-tax Act, 1961— Income —Income deemed to accrue or arise in India - Income arose in India as requirement of art. 5(2)(k) for existence of PE are satisfied.

Facts: CIT(A) has erred in upholding that the assessee constitutes a PE in India under art. 5 of the India-USA Double Taxation Avoidance Agreement for asst. yr. 2002-03.

Held, that from provisions of art. 5(2)(k), it is clear that there are only two requirement for installation PE to exist, one there should be installation project and secondly, such project should continue for a period more that 120 days. It is pertinent to note that this period of 120 days should be satisfied in any 12 month period. It means that period of 120 days is not to be seen during the financial year only relevant to assessment year under consideration. In present case, it is not disputed even by the assessee that there existed installation PE in preceding assessment years. Thus requirement of art. 5(2)(k) for existence of PE are satisfied. Assessee had furnished documentary evidence to support its claim that support service agreement was amended and assessee was not required to perform installation activities as per amended agreement. This claim of assessee does not affect the existence of PE. The original installation project remained in existence during the period under consideration and it had undisputedly continued for a period exceeding 120 days in preceding assessment years. Even if assessee's contention is accepted that it had not performed installation services during assessment year under consideration, it does not make any difference about existence of PE. That claim of assessee might be relevant for computing income attributable to PE because such income has to be worked out taking into consideration various operations done through such PE. It is clear that CIT(A) has rightly held that there is PE in India. It was the continuation of works done/services rendered. During the course of hearing, the Ld. AR fairly admitted that there is PE in India. The minimum working period is considered in totality and not financial year wise. Therefore, the CIT(A) has rightly decided the issue. - HNS INDIA VSAT INC. V/s ADDI. DIT - [2020] 205 TTJ 113 (ITAT-DELHI)

This is an appeal filed by the assessee on the ground that on the facts and circumstances of the case and in law, the learned CIT(A)-XXIX, New Delhi [hereinafter referred to as ‘the learned CIT(A)’] has erred in upholding that the appellant constitutes a PE in India under art. 5 of the India-USA Double Taxation Avoidance Agreement (‘India-US DTAA’) for asst. yr. 2002-03.

Shanti Prime Publication Pvt. Ltd.

Sec. 9 of Income-tax Act, 1961— Income —Income deemed to accrue or arise in India - Income arose in India as requirement of art. 5(2)(k) for existence of PE are satisfied.

Facts: CIT(A) has erred in upholding that the assessee constitutes a PE in India under art. 5 of the India-USA Double Taxation Avoidance Agreement for asst. yr. 2002-03.