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“permanent establishment”

International TaxSection 9 / DTAA Article 5Section 9 / DTAA Article 51,497 judgments

The decision most relied on for permanent establishment is DIT v. Morgan Stanley & Co. (292 ITR 416), cited in 360 judgments on BharatTax.

Leading authorities on permanent establishment

DIT v. Morgan Stanley & Co.
292 ITR 416 · 2007 · Supreme Court
360
citing judgments

A Permanent Establishment (PE) signifies a foreign enterprise's virtual projection into another country, with a fixed place PE existing where an MNE's business is wholly or partly carried on. A dependent agent PE requires the agent to act as such and/or have the authority to conclude contracts for the foreign enterprise under DTAA provisions.

DIT v. Nokia Networks OY
358 ITR 259 · 2013 · High Court
276
citing judgments

Payments for the supply of software along with telecom equipment are not in the nature of royalty if they are for the use of a copyrighted article, not the copyright itself. Such payments are not taxable in India in the absence of a Permanent Establishment (PE).

DIT v. Infrasoft Ltd.
39 Taxmann.com 88 · 2013 · High Court
269
citing judgments

Payments for the use of copyrighted software, without the transfer of any rights in the underlying copyright itself, do not constitute 'royalty' under the Income-tax Act or tax treaties. Such payments are often treated as business income, taxable only if a permanent establishment exists.

ONGC v. CIT
376 ITR 306 · 2015 · Supreme Court
241
citing judgments

Income derived by a non-resident for services related to mineral oil operations, falling under the presumptive taxation regime of Section 44BB, cannot simultaneously be treated as fees for technical services under Section 9(1)(vii). The specific presumptive provisions override the general FTS definition, particularly when DTAA applies.

Motorola Inc. v. Dy. CIT
95 ITD 269 · 2005 · High Court
213
citing judgments

Revenue must demonstrate the existence of a Permanent Establishment (PE) of a foreign enterprise in India, including establishing that transactions underlying a Dependent Agent PE were not at arm's length. Income from the sale of goods is not taxable in India if title and risk in the goods pass outside India.

(i) Formula One World Championship Ltd. v. CIT
394 ITR 80 · 2017 · Supreme Court
200
citing judgments

This case provides foundational principles that illuminate the contours of the concept of 'Permanent Establishment' (PE) under tax treaties, especially regarding a 'fixed place' PE.

DIT v. Morgan Stanley Co. Inc.
399 ITR 34 · 2017 · Supreme Court
162
citing judgments

Once a transfer pricing analysis has been undertaken for an Indian associated enterprise, no further profits are attributable to it as a Permanent Establishment, thereby extinguishing the need for additional profit attribution.

Sir Kikabhai Premchand v. CIT
24 ITR 506 · 1953 · Supreme Court
156
citing judgments

One cannot make a taxable profit or loss from transactions with oneself, as profit only arises from dealings with external third parties, even when transferring assets between different accounts or divisions of the same entity.

Judgments citing permanent establishment

Youcloud Dmcc, Dubai vs. Deputy Commissioner of Income Tax, Gurugram

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 1220/DEL/2024[2018-2019]Status: DisposedITAT Delhi06 Feb 2026AY 2018-2019

Bench: Shri Ramit Kochar & Shri Raj Kumar Chauhan

Section 143(2)Section 144C(1)Section 144C(5)Section 147Section 148Section 148(1)(d)Section 201(1)

times had its effective management in UAE. Further, our company never had any office including branch or liasoning office or permanent establishment in India. 2. During the year under consideration, the company was engaged by Comviva Technologies, Dubai branch office for rendering services for our common customer M/s. Etisalat (www.etisalat.ae ... times had its 12 effective management in UAE. Further, our company never had any office including branch or liasoning office or permanent establishment in India. 2. During the year under consideration, the company was engaged by Comviva Technologies, Dubai branch office for rendering services for our common customer M/s. Etisalat

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1161/MUM/2025[2014-15]Status: DisposedITAT Mumbai04 Feb 2026AY 2014-15

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR
Section 139Section 147Section 148Section 250Section 271(1)(c)

dated 24/02/2017, passed under section 143(3) read with section 147 of the Act, DZ Bank-India Representative Office was held to be a Permanent Establishment of DZ Bank AG in India and the interest income, as well as ITA No. 1158-1161/Mum/2025 & Co No. 206 -209/Mum/2025 ... submissions of the assessee and taxed the entire income at the rate of 40% by treating DZ Bank-India Representative Office as the Permanent Establishment of DZ Bank AG in India. In further appellate proceedings, the Coordinate Bench of the Tribunal held the aforesaid two receipts to be taxable under

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1160/MUM/2025[2010-11]Status: DisposedITAT Mumbai04 Feb 2026AY 2010-11

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR
Section 139Section 147Section 148Section 250Section 271(1)(c)

dated 24/02/2017, passed under section 143(3) read with section 147 of the Act, DZ Bank-India Representative Office was held to be a Permanent Establishment of DZ Bank AG in India and the interest income, as well as ITA No. 1158-1161/Mum/2025 & Co No. 206 -209/Mum/2025 ... submissions of the assessee and taxed the entire income at the rate of 40% by treating DZ Bank-India Representative Office as the Permanent Establishment of DZ Bank AG in India. In further appellate proceedings, the Coordinate Bench of the Tribunal held the aforesaid two receipts to be taxable under

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1159/MUM/2025[2009-10]Status: DisposedITAT Mumbai04 Feb 2026AY 2009-10

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR
Section 139Section 147Section 148Section 250Section 271(1)(c)

dated 24/02/2017, passed under section 143(3) read with section 147 of the Act, DZ Bank-India Representative Office was held to be a Permanent Establishment of DZ Bank AG in India and the interest income, as well as ITA No. 1158-1161/Mum/2025 & Co No. 206 -209/Mum/2025 ... submissions of the assessee and taxed the entire income at the rate of 40% by treating DZ Bank-India Representative Office as the Permanent Establishment of DZ Bank AG in India. In further appellate proceedings, the Coordinate Bench of the Tribunal held the aforesaid two receipts to be taxable under

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1158/MUM/2025[2008-09]Status: DisposedITAT Mumbai04 Feb 2026AY 2008-09

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR
Section 139Section 147Section 148Section 250Section 271(1)(c)

dated 24/02/2017, passed under section 143(3) read with section 147 of the Act, DZ Bank-India Representative Office was held to be a Permanent Establishment of DZ Bank AG in India and the interest income, as well as ITA No. 1158-1161/Mum/2025 & Co No. 206 -209/Mum/2025 ... submissions of the assessee and taxed the entire income at the rate of 40% by treating DZ Bank-India Representative Office as the Permanent Establishment of DZ Bank AG in India. In further appellate proceedings, the Coordinate Bench of the Tribunal held the aforesaid two receipts to be taxable under

R and B Falcon A Pty Ltd, Mumbai vs. Assistant Commissioner of Income Tax, Dehradun

Appeal is allowed in above terms

ITA 128/DDN/2025[2022-23]Status: DisposedITAT Dehradun30 Jan 2026AY 2022-23

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwalita No. 128/Ddn/2025 : Asstt. Year: 2022-23 R & B Falcon A Pty Ltd., Vs Acit, Office No. 402, 4Th Floor, One Circle-2, Boulevard Lake, Boulevard Road, Dehradun, Hiranandani Business Park, Powai Uttarakhand-248001 Lit S.O. Mumbai-400076 (Appellant) (Respondent) Pan No. Aaccr5345Q Assessee By : Sh. Amit Arora, Ca & Sh. Vishal Mishra, Ca Revenue By : Sh. Mohan Lal Joshi, Sr. Dr Date Of Hearing: 15.01.2026 Date Of Pronouncement: 30.01.2026 Order Per Satbeer Singh Godara: This Assessee’S Appeal For Assessment Year 2022-23, Arises Against The Cit(A)-3, Noida’S Din & Order No. Itba/Apl/S/250/2025-26/1076592383(1) Dated 30.05.2025, In Proceedings U/S 143(3) R.W.S. 144C Of The Income Tax Act, 1961. 2. Heard Both The Parties At Length. Case File Perused.

For Appellant: Sh. Amit Arora, CA &For Respondent: Sh. Mohan Lal Joshi, Sr. DR
Section 143(3)Section 244A

Taxation Avoidance Agreement. Further, the appellant has contended that the AO has erred in alleging the interest income to be effectively connected to a Permanent Establishment in India without appreciating that the Appellant did not have any Permanent Establishment in India. 5.1.2 The appellant in its ITR has claimed interest ... held that interest on income tax refund u/s 244A of the Act is business income as this interest is effectively connected with the Permanent Establishment (PE) of the appellant in India. The relevant extract of the observation of the hon’ble HC is reproduced hereunder for ready reference

ITO (It)- 1.2.2, Mumbai vs. Bennett Coleman & Co Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 7523/MUM/2025[2020-21]Status: DisposedITAT Mumbai30 Jan 2026AY 2020-21

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2020-21

For Respondent: Mr. Ajit Kumar Jain
Section 195Section 9(1)Section 9(1)(vi)Section 971

Fees for Technical Services”, and as business profit in the absence “Fees for Technical Services”, and as business profit in the absence of a Permanent Establishment of Intelsat UK in India, the Revenue of a Permanent Establishment of Intelsat UK in India, the Revenue of a Permanent Establishment of Intelsat

General Reinsurance Ag, Mumbai vs. Assistant Commissioner of Income Tax (Internatonal Taxation)-Range 2(3)(2), Mumbai

ITA 887/MUM/2023[2020-21]Status: DisposedITAT Mumbai30 Jan 2026AY 2020-21

Bench: Shri Amit Shukla & Shri Girish Agrawal

Section 115BSection 144C(5)Section 9(1)(i)

based on the directions of the learned DRP, erred in concluding that Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 3. The learned AO has on the facts ... based on the directions of the learned DRP, erred in concluding that the Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 4. Without prejudice to Ground No. 1 above

General Reinsurance Ag, Cologne, Germany vs. Assistant Commissioner of Income-Tax (International Taxation) Circle - 2(3)(2), Mumbai

ITA 4691/MUM/2023[2021-22]Status: DisposedITAT Mumbai30 Jan 2026AY 2021-22

Bench: Shri Amit Shukla & Shri Girish Agrawal

Section 115BSection 144C(5)Section 9(1)(i)

based on the directions of the learned DRP, erred in concluding that Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 3. The learned AO has on the facts ... based on the directions of the learned DRP, erred in concluding that the Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 4. Without prejudice to Ground No. 1 above

General Reinsurance Ag, Mumbai vs. Assistant Commissioner of Income Tax (Internatonal Taxation)-Range 2(3)(2), Mumbai

ITA 2448/MUM/2022[2019-20]Status: DisposedITAT Mumbai30 Jan 2026AY 2019-20

Bench: Shri Amit Shukla & Shri Girish Agrawal

Section 115BSection 144C(5)Section 9(1)(i)

based on the directions of the learned DRP, erred in concluding that Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 3. The learned AO has on the facts ... based on the directions of the learned DRP, erred in concluding that the Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 4. Without prejudice to Ground No. 1 above

General Reinsurance Ag, Mumbai vs. Assistant Comm. of Income Tax (International Taxation)-Range 2(3)(2), Mumbai

ITA 2447/MUM/2022[2018-19]Status: DisposedITAT Mumbai30 Jan 2026AY 2018-19

Bench: Shri Amit Shukla & Shri Girish Agrawal

Section 115BSection 144C(5)Section 9(1)(i)

based on the directions of the learned DRP, erred in concluding that Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 3. The learned AO has on the facts ... based on the directions of the learned DRP, erred in concluding that the Indian Branch of the Appellant is a Dependent Agent permanent establishment ('PE') of the Appellant in India as per Article 5(5) of the India-Germany tax treaty. 4. Without prejudice to Ground No. 1 above

Hareon Solar Singapore Private Limited, Singapore vs. DCIT Int. Taxation Circle-2(1)(1), New Delhi

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

ITA 2226/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Jan 2026AY 2020-21
Section 112Section 143(3)Section 144C(5)

State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available ... Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains from the alienation

Turf Estate Jv, Mumbai vs. Assisstant Commissioner of Income Tax Circle - 20(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 6923/MUM/2024[2017-18]Status: DisposedITAT Mumbai27 Jan 2026AY 2017-18

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Ravi Ganatra, AdvocateFor Respondent: Shri Krishna Kumar, Sr. DR
Section 143(3)Section 195Section 40Section 90A

same do not qualify as "Business Profits" within Article 5 and Article 7 of the DTAA between India & Thailand in the absence of Permanent Establishment in India and hence the applicability of TDS provisions on the said payments does not arise. (d) In summary, the consultancy services rendered ... residents, therefore, the same is not liable to tax in India. Also, the two parties of US and Canada do not have any Permanent Establishment (PE) in India and therefore, the same is also not taxable in India under Article 7 under the relevant DTAAs. In respect of payments made

DCIT Central Circle- 7(1), Mumbai vs. Sajjid Amir Khan, Mumbai

In the result, the three appeals of revenue are dismissed and two

ITA 6687/MUM/2025[2019-20]Status: DisposedITAT Mumbai22 Jan 2026AY 2019-20

Bench: Shri Saktijit Dey & Shri Jagadishι.Τ.Α. Νο. 6685/Mum/2025

Section 133Section 133ASection 195(2)Section 40Section 68

deleted the addition after considering the fact that M/s Ricami Giuma is a resident of Italy with no permanent establishment in India. The payment has been made to the said concern for the services rendered outside India and the said payments are not in nature of fee for technical services ... resident. The Ld. CIT (A) after considering the entire facts has held that the M/s Ricami Giuma is resident of Italy, with no permanent establishments in India and the payment made is for the services rendered outside India, which is not in the nature of technical fee and therefore

DCIT Central Circle- 7(1), Mumbai vs. Sajjid Amir Khan, Mumbai

In the result, the three appeals of revenue are dismissed and two appeals of assessee are allowed

ITA 6686/MUM/2025[2018-19]Status: DisposedITAT Mumbai22 Jan 2026AY 2018-19

Bench: Shri Saktijit Dey & Shri Jagadish

Section 133Section 133ASection 195(2)Section 40Section 68

deleted the addition after considering the fact that M/s Ricami Giuma is a resident of Italy with no permanent establishment in India. The payment has been made to the said concern for the services rendered outside India and the said payments are not in nature of fee for technical services ... resident. The Ld. CIT (A) after considering the entire facts has held that the M/s Ricami Giuma is resident of Italy,with no permanent establishments in India and the payment made is for the services rendered outside India, which is not in the nature of technical fee and therefore

DCIT Central Circle- 7(1), Mumbai vs. Sajjid Amir Khan, Mumbai

In the result, the three appeals of revenue are dismissed and two appeals of assessee are allowed

ITA 6685/MUM/2025[2017-18]Status: DisposedITAT Mumbai22 Jan 2026AY 2017-18

Bench: Shri Saktijit Dey & Shri Jagadish

Section 133Section 133ASection 195(2)Section 40Section 68

deleted the addition after considering the fact that M/s Ricami Giuma is a resident of Italy with no permanent establishment in India. The payment has been made to the said concern for the services rendered outside India and the said payments are not in nature of fee for technical services ... resident. The Ld. CIT (A) after considering the entire facts has held that the M/s Ricami Giuma is resident of Italy,with no permanent establishments in India and the payment made is for the services rendered outside India, which is not in the nature of technical fee and therefore

Sajjid Amir Khan, Mumbai vs. ACIT, CC-7(1), Mumbai

In the result, the three appeals of revenue are dismissed and two appeals of assessee are allowed

ITA 6552/MUM/2025[2018-19]Status: DisposedITAT Mumbai22 Jan 2026AY 2018-19

Bench: Shri Saktijit Dey & Shri Jagadish

Section 133Section 133ASection 195(2)Section 40Section 68

deleted the addition after considering the fact that M/s Ricami Giuma is a resident of Italy with no permanent establishment in India. The payment has been made to the said concern for the services rendered outside India and the said payments are not in nature of fee for technical services ... resident. The Ld. CIT (A) after considering the entire facts has held that the M/s Ricami Giuma is resident of Italy,with no permanent establishments in India and the payment made is for the services rendered outside India, which is not in the nature of technical fee and therefore

Sajjid Amir Khan, Mumbai vs. ACIT Central Circle 7(1), Mumbai

In the result, the three appeals of revenue are dismissed and two appeals of assessee are allowed

ITA 6546/MUM/2025[2019-20]Status: DisposedITAT Mumbai22 Jan 2026AY 2019-20

Bench: Shri Saktijit Dey & Shri Jagadish

Section 133Section 133ASection 195(2)Section 40Section 68

deleted the addition after considering the fact that M/s Ricami Giuma is a resident of Italy with no permanent establishment in India. The payment has been made to the said concern for the services rendered outside India and the said payments are not in nature of fee for technical services ... resident. The Ld. CIT (A) after considering the entire facts has held that the M/s Ricami Giuma is resident of Italy,with no permanent establishments in India and the payment made is for the services rendered outside India, which is not in the nature of technical fee and therefore

ACIT, Circle-2(1)(1), Agra vs. Emco Exports, Agra

In the result, revenue’s appeal stands dismissed

ITA 415/AGR/2025[2020-21]Status: DisposedITAT Agra15 Jan 2026AY 2020-21

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singhassessment Year: 2020-21

Section 195Section 250Section 40Section 9

submitted the copy of declaration by the foreign commission agent Pro- Moda Srl Italy dated 01.01.2019 and 01.01.2020, declaring that there is no PE (permanent establishment) in India, as there is no office or any staff in India. Copy of Italian citizenship of foreign agent and copy of Income ... which governs the obligation to deduct tax at source on payments made to non-residents, does not stipulate the existence of a permanent establishment or business connection of the non-resident in India, nor does it make any reference to the provisions of Section 9 of the Act. 3. That

Gulf Piping Company Wll, Abu Dhabi vs. Dy Commissioner of Income Tax (International Taxation), Dehradun

ITA 83/DDN/2025[2022-23]Status: DisposedITAT Dehradun14 Jan 2026AY 2022-23

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Sh. Nabin Ballodia, CA &For Respondent: Sh. Mohan Lal Joshi, Sr. DR
Section 143(3)Section 9(1)(vii)

although the assessee is not entitle for relief under “DTAA” clause, it is hereby noticed that it has nowhere been held as having a permanent establishment (“PE”) in India since having rendered all it’s construction and conversion services on “Sagar Samrat” in UAE only. Coupled with this, this tribunal ... relevant documents such as TRC, Form 15CA and 15CB before the lower authorities and that the payee/ recipient/ remittee did not have a permanent establishment (“PE”) in India and the activities were utilized for the purpose of making or earning income from a source outside India. Since the provisions under