COMPUTER MODELLING GROUP LIMITED,CANADA vs. ACIT, CIRCLE-1(2)(1), INT. TAXATION, NEW DELHI
What did the Tribunal hold?
The Tribunal held that the assessee's receipts were business income and not taxable in India as the assessee did not have a Permanent Establishment (PE) in India. Consequently, the levy of interest under Section 234B was also found to be not leviable.
What were the facts?
The assessee, a non-resident company, appealed against assessment orders taxing its receipts. The core issue revolved around whether these receipts, primarily from software licenses and services, were taxable in India given the absence of a Permanent Establishment (PE) and the provisions of the India-Canada Double Taxation Avoidance Agreement (DTAA).
What were the issues?
The primary issues were whether the assessee's receipts constituted taxable income in India under the Income Tax Act and the India-Canada DTAA, and whether interest under Section 234B was leviable on a non-resident.
Which sections of the Income-tax Act were involved?
Section 44BB,Section 143(3),Section 144C,Section 250,Section 234B,Section 271(1)(c),Section 270A,Section 244A
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Cases cited in this judgment(8)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Engineering Analysis Centre of Excellence (P) Ltd. v. CIT914 citing125 Taxmann.com 42 · 2021 · SC · Read judgment
- ONGC v. CIT241 citing376 ITR 306 · 2015 · SC
- (i) Formula One World Championship Ltd. v. CIT200 citing13 SCC 294 · 2017 · SC
- DIT v. Mitshubishi Corporation70 citing130 Taxmann.com 276 · 2021 · SC
- Sedco Forex International Inc. v. CIT29 citing399 ITR 1 · 2017 · SC
- DIT v. OHM Ltd.24 citing28 Taxmann.com 120 · 2013 · HC
- Production Testing Services Inc. v. DCIT7 citing68 Taxmann.com 143 · 2016 · HC
- CIT v. Enron Oil & Gaspat Services Inc., Dehradun6 citing29 Taxmann.com 419 · 2013 · HC
Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI
Before: SHRI G.S. PANNU, HON’BLE & MS. ASTHA CHANDRA
Heard together (4 matters)
Read from the judgment's own cause title. This page is filed under one of them.
PER ASTHA CHANDRA, JUDICIAL MEMBER
These four appeals have been filed by the assessee. The appeal in ITA No. 2090/Del/2023 is directed against the order of the Ld. Commissioner of Income-Tax (Appeals), Delhi- 42 (“CIT(A)”) pertaining to assessment year (“AY”) 2012-13. The remaining three appeals in ITA Nos. 2305/Del/2022, ITA No. 2091/Del/2023 and ITA No. 3102/Del/2023 are directed against the assessment order(s) dated 28.07.2022, 26.05.2023 and 12.09.2023 passed by the ACIT, Circle Int. Taxation-1(2)(1), under section 143(3) read with s
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