ANGEL GARMENT LTD Vs. STATE

JUDGEMENT

(1.) 1. This is an application under Section 245Q(1) of the Income-tax Act, 1961 (for short "the Act"). The applicant, M/s. Angel Garments Ltd., Hong Kong, is a non-resident company. It is incorporated under the Companies Ordinance of Hong Kong and is having its registered office at Hong Kong. The applicant is proposing to set up a liaison office in India after duly obtaining the permission from the Reserve Bank of India. The activities of the liaison office, as enumerated, would be as follows:

(2.) It is submitted that the liaison office will not carry on any commercial activity in India and will not earn any income in India. It will not have any power or authority to enter into any contract for sale or any other contract to earn income in India.

(3.) THE jurisdictional Commissioner (for short "the Commissioner"), in his comments, submits that there is no Double Taxation Avoidance Agreement (DTAA) with Hong Kong. It is admitted that the applicant is a non-resident and it is conceded that the activities of the liaison office as given by the applicant may not give rise to any taxable income in India.