CIT v. R.D. Aggarwal and Co.

56 ITR 20Supreme Court of India1965#631 most cited

What is CIT v. R.D. Aggarwal and Co. authority for?

A 'business connection' for non-residents requires a real and intimate relation between their trading activities outside India and activities within India, contributing directly or indirectly to their earnings. The Supreme Court assigned a wide meaning to this term.

156

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. R.D. Aggarwal and Co. · 56 ITR 20 · Section 9(1)(i) · Section 195 · business connection · non-resident income · income deemed to accrue · real and intimate relation · PE threshold

Sections most often in play

Section 143(3)Section 195Section 1961Section 9(1)(vii)Section 144C(13)Section 234BSection 9(1)(i)Section 115A
Read the full judgment

Issues it is cited on

section 44bbbdependent agent pesection 9(1)(i)agency peconstruction pefixed place pesection 44bbsection 5(2)business connectionsection 42section 44bsection 115a

Judgments citing CIT v. R.D. Aggarwal and Co.

Asst. Commissioner of Income Tax (It)- 2(1)(1), Mumbai vs. Credit Suisse (Singapore) Limited, Singapore

In the result, appeal by the Revenue for assessment year 2014-15 is dismissed

ITA 1700/MUM/2024[2018-19]Status: DisposedITAT Mumbai23 Sept 2024AY 2018-19

Bench: Smt. Beena Pillai & Shri Ratnesh Nandan Sahay

Section 5(2)Section 9Section 9(1)(i)

…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). In the instant case, the non-resident assessees did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in Ind…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 885/DEL/2023[2017-18]Status: DisposedITAT Delhi13 Mar 2024AY 2017-18

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 2239,884, 885 & 2240/Del/2023 (AYs: 2015-16, 2016-17, 2017-18 & 2020-21) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST, 3(1)(1), New Delhi Foreign, United Kingdom (Appellant) (Respondent) PAN: AAICA6271A SA No. 200 & 201/Del/2023 (In ITA Nos. 884, 885/Del/2023 (AYs: 2016-17, 2017-18) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 884/DEL/2023[2016-17]Status: DisposedITAT Delhi13 Mar 2024AY 2016-17

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 2239,884, 885 & 2240/Del/2023 (AYs: 2015-16, 2016-17, 2017-18 & 2020-21) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST, 3(1)(1), New Delhi Foreign, United Kingdom (Appellant) (Respondent) PAN: AAICA6271A SA No. 200 & 201/Del/2023 (In ITA Nos. 884, 885/Del/2023 (AYs: 2016-17, 2017-18) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle Intl. Taxation 3(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 2240/DEL/2023[2020-21]Status: DisposedITAT Delhi13 Mar 2024AY 2020-21

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 2239,884, 885 & 2240/Del/2023 (AYs: 2015-16, 2016-17, 2017-18 & 2020-21) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST, 3(1)(1), New Delhi Foreign, United Kingdom (Appellant) (Respondent) PAN: AAICA6271A SA No. 200 & 201/Del/2023 (In ITA Nos. 884, 885/Del/2023 (AYs: 2016-17, 2017-18) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle Intl. Taxation 3(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 2239/DEL/2023[2015-16]Status: DisposedITAT Delhi13 Mar 2024AY 2015-16

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 2239,884, 885 & 2240/Del/2023 (AYs: 2015-16, 2016-17, 2017-18 & 2020-21) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST, 3(1)(1), New Delhi Foreign, United Kingdom (Appellant) (Respondent) PAN: AAICA6271A SA No. 200 & 201/Del/2023 (In ITA Nos. 884, 885/Del/2023 (AYs: 2016-17, 2017-18) UK Grid Solutions Ltd, Vs. DCIT, ST Leonards Building, Harry Circle International Tax- Kerr Dive, Stafford ST161ST…

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 2086/DEL/2022[2019-20]Status: DisposedITAT Delhi13 Mar 2024AY 2019-20

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv
Section 143(3)Section 144C(13)Section 40Section 44B

…Department‟s SLP dismissed in 242 Taxman 371 (SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT ITA No.2085 & 20…

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 2085/DEL/2022[2018-19]Status: DisposedITAT Delhi13 Mar 2024AY 2018-19

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv
Section 143(3)Section 144C(13)Section 40Section 44B

…Department‟s SLP dismissed in 242 Taxman 371 (SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT ITA No.2085 & 20…

The Commissioner of Income Tax - International Taxation -3 vs. M/S Umw Sher (L) Limited

ITA/153/2024HC Delhi04 Mar 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

Section 115ASection 44BSection 9

…llowing the appeal of the Assessee without appreciating the fact that the receipts in the hands of the non- resident is clearly not a business receipt in view of settled legal position as per the Hon'ble Supreme Court decision in the case of R.D. Aggarwal(56 ITR 20,24) and accordingly such receipts are not liable to be taxed under section 44BB of the Act? 2.3 Whether on the facts and circumstances of the case, the Ld. ITAT has erred in not appreciating the fact that the definition of royalty income under clause (iva) to Explanation -2 of section 9(l)(vi) covers lease income from vessels being in the cate…

The Commissioner of Income Tax - International Taxation -3 vs. M/S Umw Sher (L) Limited

ITA - 153 / 2024HC Delhi04 Mar 2024
Section 115ASection 44BSection 9

…llowing the appeal of the Assessee without appreciating the fact that the receipts in the hands of the non- resident is clearly not a business receipt in view of settled legal position as per the Hon'ble Supreme Court decision in the case of R.D. Aggarwal(56 ITR 20,24) and accordingly such receipts are not liable to be taxed under section 44BB of the Act? 2.3 Whether on the facts and circumstances of the case, the Ld. ITAT has erred in not appreciating the fact that the definition of royalty income under clause (iva) to Explanation -2 of section 9(l)(vi) covers lease income from vessels being in the cate…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 455/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2017-18

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…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). In the instant case, the non-resident assessees did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in In…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 454/AHD/2022[2014-15]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2014-15

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…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). In the instant case, the non-resident assessees did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in In…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 453/AHD/2022[2013-14]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2013-14

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…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). In the instant case, the non-resident assessees did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in In…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 452/AHD/2022[2012-13]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2012-13

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…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). In the instant case, the non-resident assessees did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in In…

Ge Precision Healthcare Llc, Usa vs. The Assistant Commissioner of Income Tax, Circle 1(3)(1), Minto Road, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2623/DEL/2023[AY 2021-22]Status: DisposedITAT Delhi17 Jan 2024

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Ravi Sharma, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT-DR
Section 143(3)Section 144C(13)Section 234ASection 234BSection 234FSection 270ASection 56Section 9(1)(vii)

…degree of permanence of a non- resident or doing activities through n dependent person or employees are considered to satisfy the substantial economic connection in a source country. He also relied on the decision of the Apex court in the case of R D Agrawal (56 ITR 20,24), which laid down the law that non-resident is said to have a business activity if there exists a real and intimate relation between trading activity carried on outside the taxable territories and trading activity within the territories. The landmark judgment of the Andhra Pradesh High Court in the case of GVK Industries Ltd (228 ITR 564) was al…

We Are Voices Entertainment Inc, Gurgaon vs. DCIT International Taxation 3(1)(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 1474/DEL/2022[2019-20]Status: DisposedITAT Delhi25 Jul 2023AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2019-20

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri Vizay Vasanta, CIT-DR
Section 143(3)Section 195Section 234ASection 270A

…siness income but ‘Other Income’ which is taxable in India under Article 23 of the India- USA DTAA. Considering the factual matrix of the present case, in our humble opinion, the reliance placed by the Ld. AO in the case of CIT vs. R.D. Aggarwala & Co. (1965) 56 ITR 20 (SC) and GVK Industries Ltd. vs. ITO is misplaced. Another case relied upon by the Ld. AO i.e. CIT vs. Alpine Solvex Ltd. (2005) 276 ITR 92 (MP) is also distinguishable on facts. 7.2 The relevant extract of Article 7 of the India-USA DTAA is reproduced below:- “Article 7 Business Profit 1. The profits of an enterprise of a Contacting State shall…

Uk Grid Solution Ltd, United Kingdom vs. DCIT, Circle-3(1)(1), International Taxation, New Delhi

The appeal is allowed

ITA 2088/DEL/2022[2019-20]Status: DisposedITAT Delhi17 Apr 2023AY 2019-20

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2088/Del/2022, A.Y. 2019-20 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

Section 143(3)Section 90(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘D’ : NEW DELHI) BEFORE SH. N.K.BILLAIYA, ACCOUNTANT MEMBER AND SH.ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 2088/Del/2022, A.Y. 2019-20 UK Grid Solution Limited Vs. Deputy Commissioner of St. LOeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, ST16 1WT, International Taxation United Kingdom New Delhi PAN : AAICA6271A Assesseeby Sh. Ajay Vohra, Sr. Adv., Aditya Vohra, Adv. & Arpit Goyal, CA Revenue by Shree Jitender Kumar, CIT(DR) Date of hearing: 09.02.2023 Date of Pronouncement: 17.04.2023 ORDER Per Anubhav Sharma, JM : The assessee h…

Uk Grid Solution Ltd, United Kingdom vs. DCIT, Circle-3(1)(1), International Taxation, New Delhi

The appeal is allowed

ITA 2087/DEL/2022[2018-2019]Status: DisposedITAT Delhi12 Apr 2023AY 2018-2019

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2087/Del/2022, A.Y. 2018-19 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

Section 143(3)Section 9Section 90(2)

…Department’s SLP dismissed in 242 Taxman 371 (SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT vs Nokia Networ…

Income Tax Officer (It) 3 (2) (2), Mumbai vs. M/S. Macrotech Developers Ltd (As Sucessor of Lodha Developers Ltd Which Was Bellissimo Crown Buildmart Pvt. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 783/MUM/2022[2016-17]Status: DisposedITAT Mumbai24 Jan 2023AY 2016-17

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…nd some activities in India, which contributes directly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the bus…

Income Tax Officer (It) 3(2) (2), Mumbai vs. M/S. Macrotech Developers Ltd (As Sucessor of Lodha Developers Ltd Which Was Bellissimo Crown Buildmart Pvt. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 782/MUM/2022[2015-16]Status: DisposedITAT Mumbai24 Jan 2023AY 2015-16

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…nd some activities in India, which contributes directly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the bus…

Income Tax Officer (It) 3(2) (2), Mumbai vs. M/S. Macrotech Developers Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 500/MUM/2022[2015-16]Status: DisposedITAT Mumbai24 Jan 2023AY 2015-16

Bench: Shri Aby T Varkey & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…nd some activities in India, which contributes directly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or rec…