U.A.E. EXCHANGE CENTRE LTD. v. UOI

313 ITR 94High Court2009#4852 most cited

What is U.A.E. EXCHANGE CENTRE LTD. v. UOI authority for?

Activities carried out by a liaison office in India are considered auxiliary to the main business and therefore do not constitute a permanent establishment (PE) if they are merely supportive of the core income-generating activity, such as downloading data, preparing cheques, and dispatching them.

24

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2025.

Also referred to as

U.A.E. Exchange Centre Ltd. v. Union of India · Permanent Establishment · Article 5 · DTAA · auxiliary activities · liaison office · business income · fixed place of business

Judgments citing U.A.E. EXCHANGE CENTRE LTD. v. UOI

HYATT INTERNATIONAL SOUTHWEST AISA LTD. vs. ADDITIONAL DIRECTOR OF INCOME TAX

The appeals are dismissed

C.A. No.-009766-009766 - 2025Supreme Court24 Jul 2025

Bench: This Court, Before The High Court & Before The Income

Section 142(1)Section 143(3)

…ragraph from the judgment is especially pertinent in this regard: “13. And again, whilst analysing the scope of Articles 5 and 7 of the DTAA in para 12 of the impugned judgment [UAE Exchange Centre Ltd. v. Union of India, 2009 SCC OnLine Del 337: (2009) 313 ITR 94], the High Court noted thus: “12. … In the case of DTAA under consideration in the present case under Article 5 read with Article 7, profits of an enterprise are liable to tax in India if an enterprise were to carry on business through permanent establishment, meaning thereby fixed place of business through which business of an enterprise is…

M/S. VOITH PAPER GMBH,NEW DELHI vs. DDIT, NEW DELHI

In the result, appeal of the assessee is dismissed

ITA 1077/DEL/2014[2010-11]Status: DisposedITAT Delhi21 Feb 2020AY 2010-11

Bench: Shri O.P. Kant & Shri K.N. Charyassessment Year: 2010-11

Section 143(3)Section 144CSection 5(2)Section 9

…rwise satisfied. The list refers to activities of a preparatory or auxiliary character, such activities being exempted from PE taxation. This Authority for Advance Rulings, in the case of UAE Exchange Centre: 268 ITR 9,further affirmed by Delhi High Court in 313 ITR 94 (Del.)] held as follows: "... the word “auxiliary” in common English means helping, assisting or supporting the main activity. We have, therefore, to ascertain whether the activities carried on in the liaison offices in India, are only supportive of the main business or form one of the main functions of the business.” 86 Voith Paper GmbH Furthe…

GE NUOVO PIGNONE SPA,GURGAON vs. DCIT (INTERNATIONAL TAXATION), CIRCLE-1(3)(1), NEW DELHI

In the result, appeal filed by assessee stands partly allowed

ITA 6892/DEL/2017[2009-10]Status: DisposedITAT Delhi01 Jan 2019AY 2009-10

Bench: Shri Nk Saini & Smt. Beena A Pillaiay: 2009-10 Ge Nuovo Pignone Spa Vs. Dcit, International Taxation C/O 6Th Floor, Building No.7 A Circle 1(3)(1) Standard Chartered Building New Delhi Dlf Cyber City, Phase Iii Gurgaon 122 002 Haryana

For Appellant: Sh. Sachit Jolly, AdvFor Respondent: Sh. G.K.Dhall, CIT, D.R
Section 147Section 9

…‘auxiliary’ to mean as ‘aiding or supporting, subsidiary.’ An activity becomes auxiliary if it is in support or aid of the core income generating activity. The Hon’ble jurisdictional High Court in U.A.E. Exchange Centre Ltd. vs. Union of India and Ors. (2009) 313 ITR 94 (Del) considered a case in which the activity to be done through the Liaison Office in India was of downloading the data; preparation of cheques for remitting the amount; and dispatching the same through courier by Liaison Office. The Hon’ble High Court designated it as auxiliary to the main activity of the petitioner. The Hon’ble jurisdictional H…

GE ENERGY PARTS INC. vs. COMMISSIONER OFINCOME TAX (INTERNATIONAL TAXATION), DELHI - I

ITA/621/2017HC Delhi21 Dec 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 260A

…itself create a Fixed Place PE. It also urged that no inferences could be drawn with respect to negotiating and finalizing the critical terms of the contract. GE placed reliance on the case of U.A.E. Exchange Centre Ltd. vs. Union of India and Ors. (2009) 313 ITR 94 (Del) 10 and submitted that subsidiary activities do not count – even if such activities are necessary for the completion of the contract. It was urged that such a reading would render the core purpose of the clause null ITA 621/2017 & connected matters Page 9 of 85 and void. Similar reliance is placed on National Petroleum Constructio…

PR COMMR OF INCOME TAX-2, HYDERABAD vs. K RAVINDER REDDY, HYDERABAD

ITTA/621/2017HC Telangana23 Aug 2018

Bench: RAMESH RANGANATHAN,KONGARA VIJAYA LAKSHMI

Section 260A

…itself create a Fixed Place PE. It also urged that no inferences could be drawn with respect to negotiating and finalizing the critical terms of the contract. GE placed reliance on the case of U.A.E. Exchange Centre Ltd. vs. Union of India and Ors. (2009) 313 ITR 94 (Del) 10 and submitted that subsidiary activities do not count – even if such activities are necessary for the completion of the contract. It was urged that such a reading would render the core purpose of the clause null ITA 621/2017 & connected matters Page 9 of 85 and void. Similar reliance is placed on National Petroleum Constructio…

NAGASE & CO.LTD,MUMBAI vs. DCIT (IT) 4(2), MUMBAI

The appeals of the Revenue are dismissed

ITA 8598/MUM/2011[2006-07]Status: DisposedITAT Mumbai27 Apr 2018AY 2006-07

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: (A.Y : 2005-06)

For Appellant: Shri Nitesh JoshiFor Respondent: Shri M.V. Rajguru
Section 133ASection 148

…cannot be treated an independent entity. But, if it informs the HO, after entering in to business transaction on its own, about the results of its business activities then the HO cannot claim that the HO was assisting it. In the matter of UAE Exchange Centre (313 ITR 94), the Hon’ble Delhi High Court has held as under: “The plain meaning of the word " auxiliary" is found in the Black' s Law Dictionary 7th Edition at page 130 which reads as " aiding or supporting, subsidiary" .....Once an activity is construed as being subsidiary or in aid or support of the main activity it would, according to us, fall within the…

DDIT (IT) 4(2), MUMBAI vs. NAGASE & CO. LTD, MUMBAI

The appeals of the Revenue are dismissed

ITA 8205/MUM/2011[2006-07]Status: DisposedITAT Mumbai27 Apr 2018AY 2006-07

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: (A.Y : 2005-06)

For Appellant: Shri Nitesh JoshiFor Respondent: Shri M.V. Rajguru
Section 133ASection 148

…cannot be treated an independent entity. But, if it informs the HO, after entering in to business transaction on its own, about the results of its business activities then the HO cannot claim that the HO was assisting it. In the matter of UAE Exchange Centre (313 ITR 94), the Hon’ble Delhi High Court has held as under: “The plain meaning of the word " auxiliary" is found in the Black' s Law Dictionary 7th Edition at page 130 which reads as " aiding or supporting, subsidiary" .....Once an activity is construed as being subsidiary or in aid or support of the main activity it would, according to us, fall within the…

M/S. NAGASE & COMPANY LTD.,MUMBAI vs. ADIT (I.T) - RG.-3(2), MUMBAI

ITA 1800/MUM/2007[1998-1999]Status: DisposedITAT Mumbai12 Jan 2017AY 1998-1999
For Appellant: S/Shri Nitesh Joshi & Manoj AnchaliaFor Respondent: Shri Dipak Ripote-Sr.DR
Section 133ASection 143Section 148Section 254(1)

…d it cannot be treated an independent entity.But,if it informs the HO,after entering in to business transaction on its own,about the results of its business activities then the HO cannot claim that the HO was assisting it.In the matter of UAE Exchange Centre (313 ITR 94),the Hon’ble Delhi High Court has held as under: 1800/M/07&115/M/06369/M/06, M/s. Nagase & Co.Ltd. “The plain meaning of the word " auxiliary" is found in the Black' s Law Dictionary 7th Edition at page 130 which reads as " aiding or supporting, subsidiary" …..Once an activity is construed as being subsidiary or in aid or support of the main ac…

INTERWOVEN INC. INDIA BRNCH,MUMBAI vs. DDIT (IT) 3(1), MUMBAI

ITA 8755/MUM/2011[2008-09]Status: DisposedITAT Mumbai30 Nov 2016AY 2008-09

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 143(3)

…the activity test, but if the activities of the BO are of a preparatory or auxiliary character, then it would not constitute PE. In this regard, reliance was placed on the judgment of Hon’ble Delhi High Court in U.A.E. Exchange Centre Ltd. v. Union of India (313 ITR 94). Similar principles were applied by the Supreme Court in the case of DIT v. Morgan Stanley (292 ITR 416), by the Authority for Advance Rulings in KT Corporation (181 Taxman 94) and by the Mumbai ITAT in Dy. DIT v. Staubli A.G. India Branch Office (40 SOT 14). 19. It was submitted that the assessee does not have a PE in India under the Agency PE…

INTERWOVEN INC. INDIA BRANCH,MUMBAI vs. ADIT (IT) 3(1), MUMBAI

ITA 56/MUM/2011[2006-07]Status: DisposedITAT Mumbai30 Nov 2016AY 2006-07

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 143(3)

…the activity test, but if the activities of the BO are of a preparatory or auxiliary character, then it would not constitute PE. In this regard, reliance was placed on the judgment of Hon’ble Delhi High Court in U.A.E. Exchange Centre Ltd. v. Union of India (313 ITR 94). Similar principles were applied by the Supreme Court in the case of DIT v. Morgan Stanley (292 ITR 416), by the Authority for Advance Rulings in KT Corporation (181 Taxman 94) and by the Mumbai ITAT in Dy. DIT v. Staubli A.G. India Branch Office (40 SOT 14). 19. It was submitted that the assessee does not have a PE in India under the Agency PE…

MC DERMOTT EASTERN HEMISPHERE TD ( FORMELRY KNOWN AS J. RAY MC DERMOTT EASTERN HEMISPHERE LTD),MUMBAI vs. DDIT (IT) 3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 7855/MUM/2011[2008-09]Status: DisposedITAT Mumbai06 May 2016AY 2008-09

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J RAY MCDERMOTT EASTERN HEMISPHERE LTD,MUMBAI vs. DDIT (IT) 3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 8720/MUM/2010[2004-05]Status: DisposedITAT Mumbai06 May 2016AY 2004-05

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J RAY MCDERMOTT EASTRN HEMISPHERE LTD,MUMBAI vs. DDIT (IT) 3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 8718/MUM/2010[2007-08]Status: DisposedITAT Mumbai06 May 2016AY 2007-08

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J RAY MCDERMOTT EASTRN HEMISPHERE LTD,MUMBAI vs. DDIT (IT), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 8717/MUM/2010[2005-06]Status: DisposedITAT Mumbai06 May 2016AY 2005-06

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J. RAY MC DERMOTT EASTERN HEMISPHERE LTD,MUMBAI vs. ADIT (IT)-3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 2227/MUM/2009[2002-2003]Status: DisposedITAT Mumbai06 May 2016AY 2002-2003

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J. RAY MC DERMOTT EASTERN HEMISPHERE LTD,MUMBAI vs. ADIT (IT)-3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 2226/MUM/2009[2000-2001]Status: DisposedITAT Mumbai06 May 2016AY 2000-2001

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

M/S. J. RAY MC DERMOTT EASTERN HEMISPHERE LTD,MUMBAI vs. THE ACIT IT 3(1), MUMBAI

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 2309/MUM/2006[2002-2003]Status: DisposedITAT Mumbai06 May 2016AY 2002-2003

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

J.RAY MC DERMOTT EASTERN HEMISPHERE LTD. vs. THE JDIT (IT) 4,

In the result, appeals filed by the assessee and revenue are partly allowed for statistical purposes

ITA 5302/MUM/2004[2000-01]Status: DisposedITAT Mumbai06 May 2016AY 2000-01

Bench: Shri C.N. Prasad & Shri Ashwani Tanejaassessment Year: 1998-99 Adit (It) 1(2), M/S. J. Ray Mc Dermott Eastern Aayakar Bhavan, Hemisphere Ltd., बनाम/ M.K. Road, C/O. Price Waterhouse & Co. Cas Vs. Mumbai-400020 Trade World, ‘C’ Wing, 8Th Floor, Kamla Mills Compound, Lower Parel, Senapati Bapat Marg Mumbai- 400013 (Assessee) (Revenue) P.A. No. Aabcm1087F

…in this office were of the nature of back up and auxiliary services, and such services were specifically excluded in terms of Article 5(3)(e). He placed reliance upon the judgment of Hon’ble Delhi High Court in the case of U.A.E. EXCHANGE CENTRE LTD. vs. UOI 313 ITR 94 (Del.) and also upon the judgment of Hon’ble Supreme Court in the case of DIT vs. Morgan Stanley 292 ITR 416 (SC). He also submitted that survey operation was done u/s 133A which is distinct from the action done u/s 132(4) in terms of evidentiary value of the documents found during 17 J. Ray Mc Dermott these operations. It was submitted that in c…

DIRECTOR OF INCOME TAX -II vs. M/S NATIONAL PETROLEUM CONSTRUCTION CO.

The appeals are disposed of in the above terms

ITA/795/2014HC Delhi29 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 260A

…contention that the Assessee’s activity of installation and commissioning of platforms could be examined only in the light of the provisions of Article 5(2)(h) of the DTAA. Mr Aggarwal relied on the decision of UAE Exchange Centre Limited v. UOI: (2009) 313 ITR 94 (Del) and IAC v. Mitsui &. Co. Ltd.: (1991) 39 ITD 59 (ITAT[Del]) in support of its contention that the back office function of collection of information was specifically excluded from the purview of PE by virtue of Article 5(3)(d) and 5(3)(e) of the DTAA. 11.3 Mr Aggarwal further contended that in terms of article 5(2)(h) of the DTAA, the…

NATIONAL PETROLEUM CONSTRUCTION COMPANY vs. DIRECTOR OF INCOME TAX

The appeals are disposed of in the above terms

ITA/143/2013HC Delhi29 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 260A

…contention that the Assessee’s activity of installation and commissioning of platforms could be examined only in the light of the provisions of Article 5(2)(h) of the DTAA. Mr Aggarwal relied on the decision of UAE Exchange Centre Limited v. UOI: (2009) 313 ITR 94 (Del) and IAC v. Mitsui &. Co. Ltd.: (1991) 39 ITD 59 (ITAT[Del]) in support of its contention that the back office function of collection of information was specifically excluded from the purview of PE by virtue of Article 5(3)(d) and 5(3)(e) of the DTAA. 11.3 Mr Aggarwal further contended that in terms of article 5(2)(h) of the DTAA, the…

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U.A.E. EXCHANGE CENTRE LTD. v. UOI (313 ITR 94) — Cited in 24 Judgments | BharatTax