ITAT Rejects PE Allegation Against IMAX Canada

The Delhi ITAT held that IMAX Corporation, Canada, did not constitute either a Fixed Place PE or an Installation/Supervisory PE in India under Article 5 of the India–Canada DTAA. 

The Tribunal found that customer theatre premises were not at the disposal of the assessee and that a brief five-day visit, coupled with installation activities lasting far below the 120-day treaty threshold, was insufficient to create a PE. 

Consequently, no income could be attributed to India and the additions made by the Revenue were deleted.