HCL MEXICO S. DE R L,MEXICO vs. ACIT CIRCLE -2(1)(1) INTERNATIONAL TAXATION, NEW DELHI

ITA 594/DEL/2021Status: DisposedITAT Delhi20 December 2023AY 2012-13Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)76 pages
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What did the Tribunal hold?

The Tribunal held that the payments received by the assessee entities from HCL Technologies Ltd. were not taxable in India as they did not constitute Fees for Technical Services (FTS) under the relevant Double Taxation Avoidance Agreement (DTAA). Consequently, interest under Section 234B was not leviable.

What were the facts?

The appeals were filed by various HCL group entities against assessment orders for AY 2012-13. The core issue was the taxability of payments received by these entities from HCL Technologies Ltd. (India) for services rendered.

What were the issues?

Whether payments received by foreign HCL entities from an Indian entity for services rendered constitute FTS and are taxable in India. Whether interest under Section 234B is leviable when payments are not taxable.

Which sections of the Income-tax Act were involved?

Section 147,Section 144C,Section 143(3),Section 9(1)(vii),Section 234B,Section 234A

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Cases cited in this judgment(14)Show 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.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’: NEW DELHI BEFORE, SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER HCL Singapore PTE. Ltd.

Asst. CIT C/o HCL Technologies Ltd, 806, New Delhi-110 019 PAN-AADCH 6267Q (Appellant) (Respondent) HCL Technologies Italy S.p.A Asst. CIT (Successor of HCL Italy S.R.L.)

Circle International C/o HCL Technologies Ltd, 806, Vs.

Taxation2(1)(1)

Siddharth New Delhi 96, Nehru Place New Delhi-110 019 PAN-AAECH 9672A (Appellant) (Respondent) C/o HCL Technologies Ltd, 806, New Delhi Siddharth 96, Nehru Place New Delhi-110 019 PAN-AAFCH 0074H (Appellant) (Respondent) HCL Australia Services Pty Ltd.

Asst. CIT C/o HCL Technologies Ltd, 806, New Delhi-110 019 PAN-AAFCH 0704C (Appellant) (Respondent) HCL Technologies Philippines Inc.

Asst. CIT C/o HCL Technologies Ltd, 806, Taxati

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