“force of attraction”

Itochu Corporation, Japan vs. DCIT (International Taxation), New Delhi

The appeals of the assessee are partly allowed for statistical purposes

Bench: Shri R. K. Pandaa N D Ms. Suchitra Kamblei.T.A. No. 360/Del/2017 (A.Y. 2013-14) A N D I.T.A. No. 7615/Del/2018 (A.Y. 2015-16) (Through Video Conferencing) Itochu Corporation, Acit, 5–1, Kita-Aoyama, Vs. (International Taxation) 2–Chome, Minato-Ku Circle 2(1)(1), Tokyo 107-8077, Japan. New Delhi. Pan: Aabci5567L (Appellant) (Respondent)

profits attributable to the alleged PE with respect to direct sales made by the appellant to its Indian customers by applying the Force of Attraction Rule without appreciating the fact that there is no such provision in the Indian - Japan DTAA. 6. Without prejudice to the above ground ... alleged PE with respect to direct 7 AND ITA No. 7615/Del/2018 sales made by the appellant to its Indian customers by applying the ‘Force of Attraction’ rule without appreciating the fact that there is no such provision in the Indian-Japan DTAA. 7. Without prejudice to the above grounds

Sumitomo Corporation, New Delhi vs. DCIT (International Taxation), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

Bench: Shri R. K. Panda & Ms Suchitra Kamble(Through Video Conferencing) Sumitomo Corporation Vs Dcit (International Taxation) G-195, Circle-3(1)(2) Sarita Vihar New Delhi New Delhi Aabcs6011P (Appellant) (Respondent)

profits of the enterprise to the extent which is directly or indirectly attributable to that permanent establishment. Effectively, the treaty invokes the “Force of attraction”. This means that if the entity has PE in respect of one project but the same has been used indirectly for other project, then ... profits of the enterprise to the extent which is directly or indirectly attributable to that permanent establishment as such, the treaty invokes the “Force of Attraction” and accordingly if the entity has PE in respect of one project but the same has been used indirectly for other project, then

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

State of which the assessee is not a resident. Sub- clauses (b) and (c) to paragraph 1 of Article 7 incorporate a limited force of attraction principle. Under sub-clause (b) in addition to income attributable to the PE, income earned from sale of goods or merchandise or of same