Income Deemed to Accrue or Arise in India ::

Last updated: 07 September 2007

Court :
Tribunal

Brief :
Held that since the subsidiary co. did not have the authority to negotiate or enter into contracts on behalf of the foreign principal, it could not be held to be Permanent Establishment of the foreign co. in India and since, assessee did not have any PE in india, no income can be deemed to accrue or arise in India.

Citation :
Rolls Royce Pl. Vs. Asstt. Dir. I.T.

Income Deemed to Accrue or Arise in India Rolls Royce Pl. Vs. Asstt. Dir. I.T. 4/19/2005 IT Appeal No. 282 (Del.) of 2005 Case Fact: Whether income of the assesse, a foreign co., can be deemed to accrue or arise in India, where the co. had entered into contract with its subsidiary co. for rendering liasioning services in India. Decision: Held that since the subsidiary co. did not have the authority to negotiate or enter into contracts on behalf of the foreign principal, it could not be held to be Permanent Establishment of the foreign co. in India and since, assessee did not have any PE in india, no income can be deemed to accrue or arise in India.