GENERAL ELECTRIC CAPITAL CORPORATION INC.,MUMBAI vs. ASST. DIRECTOR OF INCOME TAX (INT.TAX.)-3(1), MUMBAI

ITA 1415/MUM/2009Status: DisposedITAT Mumbai31 August 2026AY 2004-200547 pages
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What were the facts?

The assessee, a US company, engaged in various transactions with its Indian associated enterprises, including international connectivity services, testing, software supply, and lease of aircraft engines. The Assessing Officer treated several receipts as royalty or fees for technical services, and made transfer-pricing adjustments.

What did the Tribunal hold?

The Tribunal held that international connectivity charges, testing, visa-related expenses, and soft-skills/management training were not taxable in India. Receipts from standardized software were not royalty as no copyright was transferred, and lease rental adjustments were deleted. Interest under section 234B was deleted as tax was deductible at source.

What were the issues?

Whether various receipts from services rendered by a non-resident to its associated enterprises in India are taxable as royalty or fees for technical services, and whether transfer pricing adjustments and interest under section 234B are leviable.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 9(1)(vii),Section 44D,Section 115A,Section 234B,Section 195,Section 92CA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘I’ BENCH

Before: SHRI AMIT SHUKLA & SHRI ARUN KHODPIA

For Respondent: Shri Sridhar G Menon, SR
Hearing: 03/08/2026Pronounced: 31/08/2026

Heard together (2 matters)

ITA No.1340/Mum/2009
ITA No. 1414/Mum/2009

Read from the judgment's own cause title. This page is filed under one of them.

PER AMIT SHUKLA (J.M): The aforesaid cross-appeals filed by the assessee and the Revenue pertain to assessment years 2003-04 and 2004-05 and arise from separate orders passed by the learned Commissioner of Inco

The order continues below.

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