DSD NOELL GMBH,NEW DELHI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI
What did the Tribunal hold?
The Tribunal held that the offshore services, including drawings and designs, were inextricably linked to the offshore supply of plant and equipment. Therefore, the receipts were to be characterized as business profits and not FTS, and were not taxable in India as they could not be attributed to the Permanent Establishment (PE) in India.
What were the facts?
The assessee, DSD Noell GMBH, received payments for offshore services including planning, drawings, and designs, which were linked to the supply of plant and equipment for a power project in India. The tax authorities treated these offshore services as 'Fees for Technical Services' (FTS).
What were the issues?
Whether offshore services for planning, drawings, and designs, linked to plant and equipment supply, constitute Fees for Technical Services (FTS) or business profits, and their taxability in India under the DTAA.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(16)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.
- Ishikawajima Harima Heavy Industries Ltd. v. DIT394 citing288 ITR 408 · 2007 · SC
- DIT v. Ericsson A.B256 citing204 Taxmann 192 · 2012 · HC
- ONGC v. CIT241 citing376 ITR 306 · 2015 · SC
- CIT v. Hyundai Heavy Industries Co. Ltd.166 citing291 ITR 482 · 2007 · SC · Read judgment
- CIT v. Neyveli Lignite Corpn. Ltd.91 citing243 ITR 459 · 2000 · HC
- National Petroleum Construction Company v. DIT69 citing66 Taxmann.com 16 · 2016 · HC
- Linde AG, Linde Engineering Division v. DDIT55 citing365 ITR 1 · 2014 · HC
- Mahabir Commercial Co. Ltd. v. CIT36 citing86 ITR 417 · 1972 · SC · Read judgment
- CIT v. Mitsui Engineering and Ship Building32 citing174 CTR 66 · HC
- AEG Aktiengesellschaft v. CIT29 citing267 ITR 209 · 2004 · HC
- CIT v. Mitsui Engineering and Ship Building Co. Ltd.29 citing259 ITR 248 · 2003 · HC
- Linde AG, Linde Engg. Division v. Dy. DIT24 citing44 Taxmann.com 244 · 2014 · HC
- DIT v. LG Cables Ltd.10 citing197 Taxmann 100 · 2011 · HC
- M/s Gentex Merchants Pvt. Ltd. v. Dy. Director Of Income-,Tax9 citing94 ITD 211 · 2005 · ITAT
- State of Rajasthan v. M/s Man Industrial Corporation Ltd.8 citing1 SCC 567 · 1969
- CIT v. Mitsui Engineering7 citing123 Taxmann 182 · HC
Income Tax Appellate Tribunal, DELHI BENCH ‘D’: NEW DELHI
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Read from the judgment's own cause title. This page is filed under one of them.
PER M. BALAGANESH AM: All these appeals of the Assessee arises out of the orders of the Learned Commissioner of Income Tax (Appeals)-42, New Delhi [hereinafter referred to as ‘Ld. CIT(A)], against the order passed by Assistant Director/Assistant Commissioner of Income Tax, Circle-1(2), International Taxation, New Delhi for Assessment Years 2011-12, 2012-13, 2014-15, 2015-16, 2016-17, 2017-18 & 2018-19. 3. The assessee has raised the following gro
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