SanDisk India not a Taxable DAPE of Western Digital: ITAT Rejects Survey Based Profit Attribution of ₹194.44 Cr under India-US DTAA

The ITAT has rejected a survey-based profit attribution of ₹194.44 crore on SanDisk India, ruling that it is not a "taxable DAPE of Western Digital." The tribunal's decision, which is a significant victory for the taxpayer, was made on the grounds that the company did not have a permanent establishment in India. The ruling clarifies that a tax authority cannot tax a company for an income that is not for a valid reason. The court's decision is a crucial reminder to all tax authorities to follow due process.