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Assessee has raised the groundthat, in view of the facts and circumstances of thecaseand in law, the Ld. AO has erred in determining the total income of the Appellant at 3,07,34,310/- as against the returned income of Rs. 72,84,230/- which was offered to tax on gross basis as per Article 12 of Double Taxation Avoidance Agreement (“DTAA”) by making an addition of Rs. 2,32,98,701/- (assessed income Rs. 3,07,34,310/- Less Rs. 1,51,473/- offered to tax by the Appellant on account of inadvertent mistake in return of income filed) on account of secondment arrangement between the Appellant and its Indian Associated Enterprise (“AE”).

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Section 9 of the Income Tax Act, 1961—Income - Income deemed to accrue or arise in India —Nothing is brought on record to show whether the services of the seconded employee has been utilized towards international transactions of the Indian entity or has been utilized in domestic market and even the services has been utilized by Associated Enterprises and remunerated at arm’s length price to ‘Teradata India’, will not make any impact, as in the instant case the income taxable in the hands of the PE is under consideration and nothing has been brought on record that Arm’s Length Price of the service transaction between PE of assessee and Indian Entity has been determined but what is relevant here is that income has to be taxed in the hands of the correct person and in the instant case income from rendering services by the PE has to be taxed in the hands of the PE and remunerating the Teradata India by other AEs at arm’s-length price is not relevant, thus, the argument of assessee that Teradata India was remunerated at arm’s length price under transfer pricing principles was rejected - TERADATA OPERATIONS INC. V/s DEPUTY CIT - [2020] 82 ITR (TRIB) 338 (ITAT-DELHI)