Landmark Cases on International Taxation and DTAA
456 decisions, ranked by how many judgments on BharatTax rely on them.
A permanent establishment (PE) is constituted if a non-resident enterprise has a fixed place of business in India. This fixed place must be at the disposal of the enterprise, and its business must be carried on through this place.
Income is deemed to accrue or arise in India only to the extent it is reasonably attributable to operations carried out within India, as mandated by Explanation 1(a) to Section 9(1)(i) of the Income Tax Act. The word 'shall' in this explanation signifies a legislative command.
Income derived by a non-resident for performing services in India is taxable in India, even if the payment is received outside India and the individual is not a resident of India, provided the services are rendered within the territorial limits of India.
Interest income payable by a resident to a non-resident is deemed to accrue or arise in India and is taxable if it is not for the purpose of carrying on business outside India or earning income from a source outside India. This is based on the interpretation of Section 9(1)(v)(b), read with Sections 5(2) and 4(1)(2).
The case is cited for the proposition that the characterisation of a transaction, specifically whether it constitutes a 'sale' or 'service' for tax purposes, is a key consideration in determining its taxability.
Where foreign bank account details are not signed by bank officials or lack essential identifying information, additions to the assessee's income based on such information may not be valid.
