9911796707
TMI Blog2006 (10) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... t up in India by the applicant, a non-resident company, it cannot be held to have earned any income taxable in India under the provisions of the Income-tax Act, 1961. - 729 OF 2006 - - - Dated:- 30-10-2006 - Hon'ble Mr. Justice Syed Shah Mohammed Quadri (Chairman), Mr. A.S. Narang (Member) and Mr. A. Sinha (Member) Present for the Department Mr. A.N. Pahuja, DIT (International Tax) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le products available in India to applicant's head office at Hong Kong. Coordinate and act as the channel of communication between the applicant and the Indian exporters. Follow up with the Indian Exporters for timely export of goods ordered by the applicant. It is submitted that the liaison office will not carry on any commercial activity in India and will not earn any income in India. It wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ?" 2. The jurisdictional Commissioner (for short "the Commissioner"), in his comments, submits that there is no Double Taxation Avoidance Agreement (DTAA) with Hong Kong. It is admitted that the applicant is a non-resident and it is conceded that the activities of the liaison office as given by the applicant may not give rise to any taxable income in India. 3. Mr. K. M. Sundram, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The following income shall be deemed to accrue or arise in India :- (i) all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India or through the transfer of a capital asset situated in India. [Explanation 1]- For the purposes of this clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only be to the country of which the applicant is a tax resident. In view of this position we rule on the question as follows:- Looking to the nature of the proposed activities to be carried on by and the nature of the powers of the Liaison Office which is proposed to be set up in India by the applicant, a non-resident company, it cannot be held to have earned any income taxable in India under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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