The Mumbai High Court has admitted an appeal filed by the assessee M/s Linklaters and the questions of law before the Bench are:

1. Whether the Tribunal was justified in holding that the fees earned by the Appellant were taxable in India.

2. Whether the Tribunal was justified in holding that the Appellant had a 'permanent establishment' in India within the meaning of the said term in the Double Taxation Avoidance Agreement entered into between India and the United Kingdom.

3. Whether the Tribunal ought to have appreciated that the plain words of Article 7(2) of the Tax Treaty which, by the use of the words, "the profits which that permanent establishment might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment" indicated that the said Article created a legal fiction by which the profits of the permanent establishment had to be necessarily computed on a notional basis by treating as a standalone entity operating in conditions prevalent in India.