DCIT, CIRCLE- 1(1)(2), INTL. TAXATION, NEW DELHI vs. BOMBARDIER TRANSPORTATION GMBH, NEW DELHI

ITA 4511/DEL/2017Status: DisposedITAT Delhi07 January 2026AY 2009-10Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the payments received for milestone achievements related to the supply of rolling stock were not FTS as per Article 12(4) of the DTAA. Interest under Section 234B was also not chargeable for the relevant assessment year.

What were the facts?

The assessee, a German company, supplied rolling stock to Delhi Metro Rail Corporation. Payments were made based on milestone achievements, and the Assessing Officer (AO) treated these as Fee for Technical Services (FTS) under the India-Germany DTAA. The assessee contended that these payments were for the supply of goods and related work, not technical services.

What were the issues?

Whether payments for milestone achievements in a rolling stock supply contract constitute Fee for Technical Services (FTS) under the DTAA, and the applicability of interest under Section 234B.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 9(1)(vii),Section 234B,Section 271(1)(c)

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Cases cited in this judgment(4)Show list

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आयकर अपीलीय अधिकरण धिल्ली पीठ “डी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य एिं श्री नवीन चंद्र, लेखाकार सिस्य के समक्ष IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER आअसं.5732/धिल्ली/2011(नि.व. 2008-09)

Bombardier Transportation GmbH, C/o M/s. Bombardier Transportation India Ltd., 3rd Floor, B-Wing, Somdutt Chambers-I, Bhikaji Cama Place, New Delhi ...... अपीलार्थी/Appellant PAN: AADCB-4031-C बिाम Vs.

Assistant Director of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4547/धिल्ली/2017(नि.व. 2009-10)

Bombardier Transportation GmbH, C/o M/s. Bombardier Transportation India P. Ltd., Asset No. 2, 3rd Floor, Novotel- Pullman Commercial Tower, Aero City, Delhi International Airport, New Delhi 110037 ...... अपीलार्थी/Appellant PAN: AADCB-4031-C बिाम Vs.

Assistant Director of Income Tax, ..... प्रनिवादी/Respondent Circle 1(1), New Delhi आअसं.4511/धिल्ली/2017(नि.व. 2009-10)

Deputy Commissioner of Income Tax, (International Taxation), R. No. 409, E-2 Block, 4th floor, Civic Centre, Near Minto Road, ...... अपीलार्थी/Appellant New Delhi बिाम Vs.

Bombardier Transportation Gmb

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