Treaty between India and United States – Indian decision that taxability of business income on presumptive basis is subject to presence of PE

The Indian High Court, in its decision dated 26 November 2012 in the case of CIT v. Enron Oil & Gas Expat Services Inc. (29 taxmann.com 419) (published in January 2013) held that the presumptive basis of taxation is subject to the beneficial provisions of article 7 of the India - United States Income Tax Treaty (1989) (Tax Treaty).

While delivering its decision, the High Court considered the following: