*"Binding" AAR Rulings can be challenged but not directly in the Supreme
Court *
The Petitioner, a USA company, filed an application for advance ruling on
the question whether its liaison office in India was a "business
connection"/ "permanent establishment" and whether its business profits
were taxable under the Act and the DTAA. The AAR held that the liaison
office was a business connection/ PE and that the income attributable
thereto was assessable to tax in India. The Petitioner filed a SLP directly
in the Supreme Court to challenge the AAR's ruling. The Supreme Court had
to consider whether the AAR was a "tribunal"/ "court" and whether a direct
challenge in the Supreme Court was desirable. HELD:
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