The Delhi High Court has by judgment dated 4 December 2025 dismissed the Revenue’s appeals and upheld the Income Tax Appellate Tribunal (ITAT) order that a Singapore tax resident engaged in legal advisory services did not constitute (i) a service permanent establishment (service PE) or (ii) a “virtual service PE” in India for Assessment Year (AY) 2020-21 and AY 2021-22.

Background

The tax aut…