JC BAMFORD EXCAVATORS LTD, vs. DEPUTY COMMISSIONER OF INCOME TAX

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ITA - 307 / 2018HC Delhi16 March 20182 pages
For Petitioner: MAYANK NAGI
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court admitted the appeals for consideration. The court framed specific questions of law regarding whether the ITAT correctly determined the existence of a Service PE and the nature of services as 'Fees for Technical Services'.

What were the facts?

The appellant companies are challenging the ITAT's decision that employees seconded from JCBE, UK, constituted a Permanent Establishment (PE) in India. The ITAT also held that the services rendered by these employees were 'Fees for Technical Services' under the Indo-UK DTAA.

What were the issues?

The key issues are whether seconded employees constitute a Permanent Establishment and if their services qualify as 'Fees for Technical Services' under the India-UK Double Taxation Avoidance Agreement.

Which sections of the Income-tax Act were involved?

Article 5(2)(k), Article 13(4)

AI-generated summary — verify with the full judgment below

$~26/31 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 307/2018

JC BAMFORD EXCAVATORS LTD

..... Appellant

versus

DEPUTY COMMISSIONER OF INCOME TAX..... Respondent

+ ITA 309/2018

JC BAMFORD INVESTMENTS

..... Appellant

versus

DEPUTY COMMISSIONER OF INCOME TAX..... Respondent Through : Sh. Mayank Nagi, Advocate, for appellant. Sh. Ruchir Bhatia, Sr. Standing Counsel, for respondent.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

16.03.2018

Admit.

Following questions of law arise for consideration: “1. Whether the Income Tax Appellate Tribunal (ITAT) was correct in law in holding that the employees seconded by JCBE, U.K. engaged in rendering managerial services constitutes a PE of the appellant company under Article 5(2)(k) of the Indo-UK DTAA, especially with respect to the Technology Transfer Agreement.

2.

Whether the ITAT was correct in law in holding that the services rendered by the employees seconded by JCBE, U.K. were in the nature of “Fees for Technical Services” for and on behalf of the appellant in terms of Page 1 of 2

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 14:03:02

Article 13(4) of the Indo-UK DTAA and having held so, whether it was right in holding that the rendering of such services resulted in a Service PE in India?”

Sh. Ruchir Bhatia, Sr. Standing Counsel accepts notice of appeal on behalf of the Revenue. List these appeals along with ITA 685/2014 and ITA 69/2015 for hearing on 07.08.2018.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MARCH 16, 2018/ajk

Page 2 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 14:03:02

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