ITAT holds that Permanent Establishment is not created merely on secondment of employees to Indian subsidiary
Brief facts:
The Assessee is Samsung Electronics Co. Ltd. (“Samsung”) which is a company established in Korea. Principle activity of the company is manufacturing and sales of wide range of electronic items globally. Samsung has a wholly owned subsidiary in India named Samsung India Electronics Private Limited (‘SIEL’). A survey was conducted by the income-tax department at the premises of SIEL. Consequently, a notice u/s 148 of the Act was issued to Samsung for initiating re-assessment proceedings for AY 2004-05 to 2009-10. On the request of Samsung the income-tax department provided the following reasons for issuance of notice u/s 148 of the Act: