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ITAT Delhi rejects the allegation of constitution of Permanent Establishment of foreign enterprise having subsidiaries in India sans satisfaction of disposal test January 8, 2026
Published in: TaxBuzz
DISCLAIMER: The material contained in this publication is solely for information and general guidance and not for advertising or soliciting. The information provided does not constitute professional advice that may be required before acting on any matter. While every care has been taken in the preparation of this publication to ensure its accuracy, Vaish Associates Advocates neither assumes responsibility for any errors, which despite all precautions, may be found herein nor accepts any liability, and disclaims all responsibility, for any kind of loss or damage arising on account of anyone acting / refraining to act by placing reliance upon the information contained in this publication.
We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of ITAT, Delhi Bench in the case of SAIC Motor Corporation Limited v. ACIT: ITA No. 1191/Del/2025 wherein the Hon’ble ITAT struck down the profit attribution made to the alleged PE of a non-resident taxpayer in India, holding that the tax authorities failed to discharge onus of establishing the existence of a Fixed Place PE or a Supervisory PE.
Further, Hon’ble ITAT observed that in case the view of tax authorities is to be accepted i.e., if the assembly unit/manufacturing plant of the subsidiary is treated as fixed place PE of the taxpayer, it would create huge disruptions in taxability of the income of the foreign entities operating in a multinational set-up.
We trust that you will find the same useful.
For any details and clarifications, please feel free to write to:
Mr. Neeraj K Jain, Senior Partner: [email protected]
Mr. Kunal Pandey, Principal Associate: [email protected]
Mr. Girish Sonthlia, Associate: [email protected]
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