1. Introduction

The Formula One decisions of the Delhi High Court and the Indian Supreme Court have gained the status of ‘landmark’ decisions on the fixed place PE issues. Those decisions involved a rather peculiar fact-pattern. Hence, they are distinguishable on facts in most cases involving fixed place permanent establishment (PE) issues. But the Indian tax authorities have frequently invoked those decisions in many PE cases – as if they have found a ‘formula’ for redefining the prerequisites for existence of fixed place PE.

This article examines 12 PE cases pronounced by the Indian Supreme Court, the Delhi High Court, the Indian Income Tax Appellate Tribunal (ITAT) and the Indian Authority for Advance Rulings (Income-tax) (AAR) wherein the Delhi High Court's and the Indian Supreme Court's Formula One decisions were either relied upon or referred to.