SHELL INTERNATIONAL PETROLEUM COMPANY LTD.,MUMBAI vs. DCIT (IT) 4(2)(1), MUMBAI

ITA 2307/MUM/2022Status: DisposedITAT Mumbai21 April 2025AY 2019-20Bench: MS PADMAVATHY S (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that Business Support Services (BSS) do not constitute Fees for Technical Services (FTS) as they are in the nature of cost recharges. Similarly, software license and maintenance charges were not considered royalty, and cost allocations for IT services were also not taxable as FTS.

What were the facts?

The assessee, M/s Shell International Petroleum Co. Ltd., appealed against assessment orders concerning Business Support Services (BSS), software license charges, and cost allocations. The Assessing Officer (AO) treated these as Fees for Technical Services (FTS) or royalty, which the assessee contested.

What were the issues?

Whether Business Support Services (BSS) and software-related charges constitute Fees for Technical Services (FTS) or royalty, and whether cost allocations for IT services are taxable as FTS.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 195,Section 234B,Section 271(1)(c),Section 270A

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Cases cited in this judgment(5)Show list

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI RAJ KUMAR CHAUHAN, JM

For Appellant: Ms. Reema Garewal &, Ms. Snigdha Gautam, AR
For Respondent: Shri Vivek Perampurna, CIT-DR
Hearing: 01.04.2025Pronounced: 21.04.2025

Heard together (5 matters)

I.T.A. No. 7499/Mum/2019
I.T.A. No. 1244/Mum/2021
I.T.A. No. 995/Mum/2022
I.T.A. No. 2307/Mum/2022
I.T.A. No. 3317/Mum/2023

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

Per Bench : These appeals by the assessee are against the separate final assessment order of the Deputy. Commissioner of Income Tax (International Tax)-4(2)(1), Mumbai (in short "the AO") passed under section 143(3) r.w.s. 144C(13) of the Incom

The order continues below.

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