ANDRITZ AG,NEW DELHI vs. DDIT (INTERNATIONAL TAXATION), NEW DELHI

ITA 288/DEL/2017Status: DisposedITAT Delhi27 June 2024AY 2012-13Bench: SHRI SAKTIJIT DEY (Vice President), SHRI M. BALAGANESH (Accountant Member)28 pages
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What did the Tribunal hold?

The Tribunal held that payments received for offshore supply of design and engineering, when part of composite contracts for plant and equipment supply, are not taxable as FTS if the plant and equipment supply is not taxable. Reimbursement of costs without markup is also not taxable as FTS.

What were the facts?

The assessee, a non-resident Austrian company, received payments for offshore supply of design and engineering, offshore supply of plants and equipment, and onshore supervisory services from Indian clients. The Assessing Officer treated offshore design and engineering fees as Fees for Technical Services (FTS) taxable in India.

What were the issues?

Whether offshore supply of design and engineering services, as part of composite contracts, are taxable as FTS in India. Whether cost reimbursements without markup are taxable as FTS.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii)

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Cases cited in this judgment(6)Show list

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

Before: SHRI SAKTIJIT DEY, VICE- & SHRI M. BALAGANESH

For Appellant: Shri Percy Pardiwalla, Sr. Advocate, Ms. Ritu Theraja, CA
Hearing: 11.06.2024Pronounced: 27.06.2024

PER SAKTIJIT DEY, VICE-PRESIDENT

Captioned appeals, three by the assessee and one by Revenue, arise out of three separate orders of learned

Commissioner of Income Tax (Appeals), New Delhi, pertaining to assessment years 2011-12, 2012-13 and 2014-15. Since, the appeals involve common issues, they have

The order continues below.

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