9911796707
TMI Blog2024 (11) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... OURT] as well as Evolv Clothing Co.(P). Ltd [ 2018 (6) TMI 1324 - MADRAS HIGH COURT] as held as Cl. (a) of the Explanation to Cl. (i) of sub-s. (1) of S. 9 of the Act which provides that in the case of a business of which all the operations are not carried out in India, the income of the business deemed under that clause to accrue or arise in India shall be only such part of the income as is reasonably attributable to the operations carried out in India. If all such operations are carried out in India, the entire income accruing therefrom shall be deemed to have accrued in India. If, however, all the operations are not carried out in the taxable territories, the profits and gains of business deemed to accrue in India through and from busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of the Article 12 of India - US DTAA which are applicable in the assessee case? 3. It is brought to our notice that, at least two decisions one by the Hon'ble Supreme Court of India and another by the Division Bench of this Court have been rendered already on the same issue. 4. It is fairly submitted by the learned Senior Standing Counsel appearing for the appellant / Revenue that, the issue is covered by a decision of the Hon'ble Supreme Court in the case of Commissioner of Income Tax Vs. Toshoku Ltd., reported in [1980] 125 ITR 525 (SC) as well as the Division Bench of this Court in the case of Evolv Clothing Co.(P). Ltd., Vs. The Assistant Commissioner of Income Tax, Company Circle-II(1), Chennai reported in [2018] 94 taxmann. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the operations carried out in the taxable territories. If no operations of business are carried out in the taxable territories, it follows that the income accruing or arising abroad through or from any business connection in India cannot be deemed to accrue or arise in India. (See CIT v. R.D.Aggarwal and Co. [1965] 56 ITR 20 (SC) and Carborundum Co. v. CIT [1977] 108 ITR 335 (SC) which are decided on the basis of s.42 of the Indian I.T. Act, 1922, which corresponds to s. 9(1)(i) of the Act. 6. In view of the law having been settled, we are of the view that, the substantial questions of law raised by the appellant Revenue in this appeal are to be answered in favour of the assessee and against the Revenue by following the said decision. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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