The Income Tax Appellate Tribunal (ITAT) delivered its decision on 17 January 2014 in the case of Brown & Sharpe Inc v. DCIT. [2014] 41 taxmann.com 345 (Delhi-Trib) on the taxability of a liaison office (LO).
(a) Facts. The Taxpayer (i.e. M/S Brown & Sharpe Inc), a company and a tax resident of United States (US) is a subsidiary of Hexagon AB (Publ), Sweden. The Taxpayer established a LO in India to serve as a communication channel with its customers/prospective customers in Indi…