OXBOW ENERGY SOLUTIONS B.V.,THANE vs. THE DEPUTY COMMISSIONER OF INCOME, MUMBAI

ITA 4769/MUM/2023Status: DisposedITAT Mumbai04 November 2025AY 2021-2022Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the activities of the Liaison Office were preparatory or auxiliary in nature and did not constitute a Permanent Establishment under the India-Netherlands Double Taxation Avoidance Agreement (DTAA). Therefore, the ad-hoc addition made by the revenue was liable to be deleted.

What were the facts?

The assessee, a foreign company, maintained a Liaison Office (LO) in India for gathering information related to the petroleum-coke market. The Assessing Officer (AO) and Dispute Resolution Panel (DRP) held that the LO constituted a Permanent Establishment (PE) in India and attributed income to it. The assessee argued that the LO's activities were limited to liaison and information gathering, permissible by the RBI, and did not create a PE.

What were the issues?

Whether the activities of a Liaison Office in India, limited to gathering and disseminating information, constitute a Permanent Establishment under the India-Netherlands DTAA. Whether income can be attributed to such a Liaison Office.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13)

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM &

For Appellant: Shri Nishant Thakkar, Ms. Jasmin
For Respondent: Shri. Krishna Kumar, Sr. DR
Pronounced: 04.11.2025

Per Padmavathy S, AM: This appeal by the assessee is against the final order of assessment passed by the Deputy Commissioner of Income tax, International Circle-3(2)(2), Mumbai (in short 'the AO') passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (the 'Act') dated 25.10.2023 for AY 2021-22. The assessee raised the following grounds:

“1. The Assessing Officer (AO) as well as the Dispute Resolution Panel (DRP) erred in assessing Rs. 37,63,060/- as income liable to tax in India.

2 Oxbow Energy solutions B.V.

2.

The AO/DRP erred in holding that ASSESSEE has a business

The order continues below.

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