DCIT CIRCLE-3(1)(1) INTERNATIONAL TAXATION, NEW DELHI vs. TOYOTA TSUSHO CORPORATION, GURGAON

ITA 1508/DEL/2020Status: DisposedITAT Delhi21 September 2026AY 2016-1727 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, Toyota Tsusho Corporation, appealed against the disallowance of claims and imposition of tax related to its operations in India. The Revenue also appealed against certain decisions of the CIT(A). The core issues revolved around the existence of a Permanent Establishment (PE) in India and the taxability of offshore supplies and salary reimbursements.

What did the Tribunal hold?

The Tribunal held that offshore supply profits are not taxable in India if property and title pass outside India, and payments are received outside India. It also held that reimbursements of expatriate salary costs to a related entity do not constitute taxable income in the hands of the assessee.

What were the issues?

The key issues were whether the assessee had a Permanent Establishment (PE) in India and the taxability of offshore supplies and reimbursements of expatriate salaries.

Which sections of the Income-tax Act were involved?

Section 5(2),Section 9(1)(i),Section 44DA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SH. VIKAS AWASTHY & SH. NAVEEN CHANDRA

For Appellant: Shri Vishal Kalra, Adv, Ms. Sumisha Murgai and Ms. Kashish Gupta, CAs
For Respondent: Dr. Shalini Verma, CIT-D.R. and Shri Surender Jatav, Sr. D.R
Hearing: 09.07.2026Pronounced: 21.09.2026

ITA Nos.1828 & 1911/Del/2018 [A.Y 2013-14] ITA Nos.1513 & 1908/Del/2020 [A.Y. 2015-16] & ITA Nos.1508 & 1514/Del/2020 [A.Y. 2016-17] Toyota Tsusho Corporation PER NAVEEN CHANDRA, ACCOUNT

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 5(2)

All 421 judgments and leading authorities on Section 5(2) →

Recent GST High Court judgments

Search GST case law →