CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC vs. ACIT (INT. TAXATION), CIRCLE 1 (2) 1, NEW DELHI

ITA - 438 / 2024HC Delhi14 August 20242 pages

For Petitioner: SHASHWAT BAJPAI

AI SummaryPartly Allowed

What did the High Court hold?

The Delhi High Court admitted the appeal, noting that the ITAT's decision was consistent with its prior rulings for other assessment years. The court framed specific questions of law regarding the PE's existence, profit attribution, and the ITAT's reliance on earlier orders.

What were the facts?

The assessee's appeal before the Delhi High Court concerns the Income Tax Appellate Tribunal's (ITAT) decision regarding the existence of a fixed place Permanent Establishment (PE) and attribution of profits. The ITAT had previously ruled on similar issues for earlier assessment years.

What were the issues?

The key issues are whether the appellant had a fixed place PE in India and if profits could be attributed to it based on the use of assets and software by its Indian subsidiary. The court also considered the ITAT's reliance on its own prior decisions.

Which sections of the Income-tax Act were involved?

Article 5(1)

AI-generated summary — verify with the full judgment below

$~63 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 438/2024 CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC .....Appellant Through: Dr. Shashwat Bajpai, Mr. Mahir Khanna and Mr. Sudarsan Roy Adv. versus ACIT (INT. TAXATION), CIRCLE 1 (2) 1, NEW DELHI .....Respondent Through: Ms. Nivedita, Ms. Poshali Dhillon, Advocates for Mr. Aseem Chawla, Sr. St. Counsel. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA O R D E R %

14.08.2024 CM APPL. 46640/2024 (Exemption) Allowed, subject to all just exceptions. This application stands disposed of. ITA 438/2024 & CM APPL. 46641/2024 (Ex. List Of Dates & Synopsis) 1. We note that the Income Tax Appellate Tribunal [“Tribunal”] has essentially followed the view taken by it for Assessment Year [“AY”] 2013-14, 2018-19 and 2019-20. We note that the judgments rendered for those years presently forms subject matter of a batch of Income Tax Appeals led by ITA No. 131/2021. On 23 January 2024, we had admitted the assessee’s appeals on the following three questions: 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 12:07:37

“a. Whether, the Income Tax Appellate Tribunal [‘ITAT‟] was correct in law in concluding that the Appellant had a fixed place Permanent Establishment ('PE') in terms of Article 5(1) of the India-US Tax Treaty? b. Whether, the ITAT has erred in law in holding that profits could be attributed to the alleged PE on account of provision of/allowing use of project specific assets/software by the Appellant to its Indian subsidiary for the purpose of executing specific projects/activities? c. Whether the ITAT erred in solely relying upon the ITAT orders passed in Appellant‟s own case for the earlier AY‟s, i.e., AY 2006- 07 to 2008-09 in complete ignorance of the facts of the current case and jurisprudence on the issue of PE? 2. Consequently, let this appeal stand tagged with ITA 131/2021 to be called on the date fixed i.e 27.08.2024. 3. The appeal shall also stand admitted on the questions aforenoted. YASHWANT VARMA, J. RAVINDER DUDEJA, J. AUGUST 14, 2024/ib 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 12:07:37

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