The Delhi High Court held that the Indian establishment did not ...

Reassessment notices u/s 148 quashes, since no Fixed Place PE in India. Collaborative work deemed "auxiliary" not core business.

Case Laws Income Tax

May 31, 2024

The Delhi High Court held that the Indian establishment did not constitute a Fixed Place PE for the petitioner. The court noted that the premises in Noida and Varanasi did not meet the criteria of a "virtual projection" or complete takeover for conducting core business activities. The impugned notices u/s 147/148 lacked evidence to establish a Fixed Place PE. The court emphasized that the Indian subsidiary's activities were "preparatory" or "auxiliary" and not core business functions. The respondents failed to prove that the Indian subsidiary was a mere conduit for the petitioner. The court quashed the reassessment proceedings and notices u/s 148, while keeping open the issue of whether the Delhi office constitutes a PE. The transfer of the petitioner's PAN jurisdiction was also quashed.

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The Delhi High Court held that the Indian establishment did not ...

Reassessment notices u/s 148 quashes, since no Fixed Place PE in India. Collaborative work deemed "auxiliary" not core business.

Case Laws Income Tax

May 31, 2024

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