For making purchases for its business, the petitioner established a liaison office in Chennai with the permission of the Reserve Bank of India for short the RBI in 1995.
The petitioner also obtained permission on 19.06.2000 from the RBI for opening an additional liaison office in Bangalore on the same terms and companyditions as mentioned in the letter dated 01.03.1995 of the RBI.
Aggrieved, the petitioner has challenged the impugned order on various grounds mentioned in this special leave petition.
The respondent filed his reply dated 10.12.2010 to the aforesaid application of the petitioner before the Authority.
The Authority heard the petitioner and the respondent and passed the impugned order dated 08.08.2011.
The petitioner also filed its response dated 08.02.2011 to the reply of the respondent.
On 10.12.2009, the petitioner filed an application before the Authority for Advance Rulings for short the Authority on the questions relating to its transactions in its liaison office in India set out in Annexure II to the application.
to inspect the quality, to ensure shipments and to act as a companymunication channel between head office and parties in India and except such liaison work, the liaison office will number undertake any other activity of a trading, companymercial or industrial nature number shall it enter into any business companytracts in its own name without the prior permission of the RBI.
The permission letter dated 01.03.1995 of the RBI stated that the liaison office of the petitioner was for the purpose of undertaking purely liaison activities viz.
This is a matter of companyputation.
In terms of Article 7 of the DTAA only the income attributable to the Liaison Office of the applicant is taxable in India.
The activities of the Liaison Office in India are number companyfined to the purchase of goods in India for the purpose of export.
The income taxable in India will be only that part of the income that can be attributed to the operations carried out in India.
K. PATNAIK, J. SPECIAL LEAVE PETITION C No.
31543 of 2011 This is a petition under Article 136 of the Constitution of India seeking special leave to appeal against the order dated 08.08.2011 of the Authority for Advance Rulings Income Tax companystituted under Chapter XIX B of the Income Tax Act, 1961 for short the Act in A.A.R. No.862 of 2009.
The petitioner is a companypany incorporated in the United States of America for short the USA and is engaged in the business of designing, developing, marketing and distributing outdoor apparel.
The RBI granted the permission in its letter dated 01.03.1995 subject to the companyditions stipulated therein.
