The Indian Income Tax Appellate Tribunal (ITAT) delivered a ruling dated 29 March 2006 (reported in January 2007) in the case of Van Oord Dredging and Marine Contractors BV v. Deputy Director of Income Tax (International Taxation) (2007 TIOL–18-ITAT-MUM) on whether income attributable to a permanent establishment (PE) of a foreign company is taxable in India even if the PE ceases to exist in the relevant assessment year. (a) Facts. The Appellant (i.e. Van Oord Dredging and Marine Contractors BV) was a company incorporated in the Netherlands and was an international dredging contractor. It was a tax resident of Netherlands....