DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION vs. GE JENBACHER GMBH & CO. OHG

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ITA/368/2014HC Delhi12 January 20158 pages
AI SummaryRemanded

What did the High Court hold?

The High Court referred to a previous decision in ITA 352/2014 for the detailed judgment. The outcome of this judgment would determine whether the payments were taxable in India as business income or royalty, and if so, under which provisions.

What were the facts?

The appeals were filed by the Director of Income Tax (International Taxation) against various entities under the GE group. The core issue revolved around the taxability of payments made to these foreign entities for services rendered in India.

What were the issues?

The primary issue was the characterization of payments made to foreign entities for services, specifically whether they constituted royalty or business income taxable in India. The appeals also likely dealt with the applicability of Double Taxation Avoidance Agreements (DTAAs).

Which sections of the Income-tax Act were involved?

Section 9,Section 44DA,Section 115A

AI-generated summary — verify with the full judgment below

ITA 353/2014 and connected matters Page 1 $~7 to 46 * IN THE HIGH COURT OF DELHI AT NEW DELHI Decided on : 12.01.2015 + ITA 353/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus M/S GE PACKAGED POWER INC. ..... Respondent + ITA 354/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE PACKAGED POWER INC ..... Respondent + ITA 355/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE PACKAGED POWER INC. ..... Respondent + ITA 356/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE PACKAGED POWER INC. ..... Respondent + ITA 357/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE PACKAGED POWER INC ..... Respondent + ITA 358/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 2 versus GE JENBACHER GMBH & CO. OHG ..... Respondent + ITA 359/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE JENBACHER GMBH & CO. OHG ..... Respondent + ITA 360/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE JENBACHER GMBH & CO. OHG ..... Respondent + ITA 361/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE NUOVO PIGNONE S.P.A. ..... Respondent + ITA 362/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE NUOVO PIGNONE S.P.A. ..... Respondent + ITA 363/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE NUOVO PIGNONE S.P.A. ..... Respondent + ITA 364/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 3 GE NUOVO PIGNONE S.P.A. ..... Respondent + ITA 365/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC ..... Respondent + ITA 366/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC ..... Respondent + ITA 367/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC ..... Respondent + ITA 368/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC..... Respondent + ITA 369/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC..... Respondent + ITA 370/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES DISTRIBUTION LLC..... Respondent 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 4 + ITA 371/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent + ITA 372/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent + ITA 373/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent + ITA 374/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent + ITA 375/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent + ITA 376/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE AIRCRAFT ENGINE SERVICES LIMITED ..... Respondent 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 5 + ITA 377/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE AIRCRAFT ENGINE SERVICES LIMITED..... Respondent + ITA 378/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE AIRCRAFT ENGINE SERVICES LIMITED..... Respondent + ITA 379/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE AIRCRAFT ENGINE SERVICES LIMITED..... Respondent + ITA 380/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE AIRCRAFT ENGINE SERVICES LIMITED..... Respondent + ITA 381/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES MALAYSIA SDN BHD..... Respondent + ITA 382/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES MALAYSIA SDN BHD..... Respondent + ITA 383/2014 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 6 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES MALAYSIA SDN BHD ..... Respondent + ITA 384/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES MALAYSIA SDN BHD ..... Respondent + ITA 385/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENGINE SERVICES MALAYSIA SDN BHD ..... Respondent + ITA 386/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus M/S GE JAPAN LTD ..... Respondent + ITA 387/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE JAPAN LTD ..... Respondent + ITA 388/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE JAPAN LTD ..... Respondent + ITA 389/2014 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 7 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE JAPAN LTD ..... Respondent + ITA 390/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE NUOVO PIGNONE S.P.A ..... Respondent + ITA 391/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE NUOVO PIGNONE S.P.A ..... Respondent + ITA 402/2014 DIRECTOR OF INCOME TAX INTERNATIONAL TAXATION ..... Appellant versus GE ENERGY PARTS INC ..... Respondent Through : Sh. Balbir Singh, Sr. Standing Counsel with Ms. Rubal Maini, Advocate, for CIT. Sh. Sachit Jolly and Ms. Gargi Bhatt, Advocates, for the respondent. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K. GAUBA MR. JUSTICE S. RAVINDRA BHAT (OPEN COURT) % 2015:DHC:259-DB

ITA 353/2014 and connected matters Page 8 For detailed judgment, the decision dated 12.01.2015 in ITA 352/2014 may be referred to. S. RAVINDRA BHAT (JUDGE) R.K. GAUBA (JUDGE) JANUARY 12, 2015 2015:DHC:259-DB

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