18 (AAR-New Delhi) (ii) Invensys Systems Inc. 317 ITR 438 (AAR) (iii) J.K. (Bombay) Limited v. CBDT

242 ITR 208Reported decision1999#3299 most cited

What is 18 (AAR-New Delhi) (ii) Invensys Systems Inc. 317 ITR 438 (AAR) (iii) J.K. (Bombay) Limited v. CBDT authority for?

Technical services require expertise in technology, while consultancy services are advisory, and the two categories can overlap. Consultancy services encompass advisory services regardless of whether technological expertise is required.

36

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2014 to 2025.

Also referred to as

In Re P.No. 28 of 1999 · 242 ITR 208 · technical services · consultancy services · expertise in technology · advisory services · AAR

Issues it is cited on

service pesection 5(2)business connectiontax treatypermanent establishmentsection 195section 9(1)(vii)section 9(1)fees for technical servicesnon-residentassociated enterprisesassociated enterprise

Judgments citing 18 (AAR-New Delhi) (ii) Invensys Systems Inc. 317 ITR 438 (AAR) (iii) J.K. (Bombay) Limited v. CBDT

SOLVAY S A ,MUMBAI vs. THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAX CIRCLE 4(2)(2), MUMBAI

In the result, the appeal is partly allowed

ITA 2071/MUM/2025[2022-23]Status: DisposedITAT Mumbai27 Oct 2025AY 2022-23
Section 143(3)Section 9(1)(vii)

…No. 2071/Mum/2025 (A.Y.2022-23)\nSolvay S. A. vs. Dy. CIT(IT)\n\nconsultant, who provides the consultancy service, has to be a human being. A machine\ncannot be regarded as a consultant.\"\n\nThe AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had\nobserved:-\n\n\"By technical services, we mean in this context services requiring expertise in\ntechnology. By consultancy services, we mean in this context advisory services. The\ncategory of technical and consultancy services are to some extent overlapping because\na consultancy service could also be technical service. However, the categor…

JANET CHRISTINE DEPENNING,CHENNAI vs. ITO, INTERNATIONAL TAXATION WARD-1(1),, CHENNAI

In the result, the appeal of the Revenue is allowed for statistical purpose

ITA 1319/CHNY/2024[2014-15]Status: DisposedITAT Chennai31 Dec 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.1319, 1320, 1321, 1322 & 1323/Chny/2024 िनधा<रण वष< /Assessment Years:2014-15, 2015-16, 2016-17, 2017-18 & 2020-21 Janet Christine Depenning, The Income Tax Officer, 120, Velachery Main Road, Vs. International Taxation Ward-1(1), Guindy,Chennai – 600 032. Chennai. [Pan: Aebpd 2408L]

For Appellant: Shri Sanjeev Aditya, C.A LMFor Respondent: Smt. G. Saratha, Addl. CIT
Section 195Section 201(1)Section 9(1)(vii)Section 9(1)(viii)

…n the said judgment the Hon’ble Court observed as follows:- “34. In the case at hand, we are concerned with the expression "consultancy services". In this regard, a reference to the decision by the Authority for Advance Ruling P. No. 28 of 1999, In re [2000] 242 ITR 208/[1999] 105 Taxman 218 (AAR - New Delhi), would be applicable. The observations therein read as follows: "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping b…

M/S. LINKLATERS,MUMBAI vs. THE DDIT (IT) 4(1), MUMBAI

In the result, appeal filed by the revenue is dismissed

ITA 3280/MUM/2008[2005-2006]Status: DisposedITAT Mumbai11 Oct 2023AY 2005-2006

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blelinklaters V. Ddit (International Taxation) – 4(1) Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent) Ddit (International Taxation) – 4(1) V. Linklaters Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent)

Section 143(3)Section 244ASection 44C

…may also add that similar argument, materially similar to the argument raised by the assessee before us and in respect of materially similar treaty provision, also came up for consideration before Hon’ble Authority for Advance Ruling in the case of XYZ In Re (242 ITR 208). Rejecting this plea, Hon’ble Justice Ranganathan, Chairman ‐ AAR, observed as follows: 23. The learned counsel also submitted that the definition of PE is only what is formulated in Article 5(1) and that Article 5(2) is only illustrative of the cases that fulfill the requirement of paragraph 1 of Article 5. In other words, XYZ cannot be said to…

DDIT (IT)-4(1), MUMBAI vs. M/S. LINKLATERS, MUMBAI

In the result, appeal filed by the revenue is dismissed

ITA 3039/MUM/2008[2005-2006]Status: DisposedITAT Mumbai11 Oct 2023AY 2005-2006

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blelinklaters V. Ddit (International Taxation) – 4(1) Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent) Ddit (International Taxation) – 4(1) V. Linklaters Scindia House, N.M. Road C/O. Deloitte Haskins & Sells Llp Bellard Estate, Mumbai - 400001 Indiabulls Finance Centre Tower 3 28Th Floor, Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 Pan: Aabfl2160M (Appellant) (Respondent)

Section 143(3)Section 244ASection 44C

…may also add that similar argument, materially similar to the argument raised by the assessee before us and in respect of materially similar treaty provision, also came up for consideration before Hon’ble Authority for Advance Ruling in the case of XYZ In Re (242 ITR 208). Rejecting this plea, Hon’ble Justice Ranganathan, Chairman ‐ AAR, observed as follows: 23. The learned counsel also submitted that the definition of PE is only what is formulated in Article 5(1) and that Article 5(2) is only illustrative of the cases that fulfill the requirement of paragraph 1 of Article 5. In other words, XYZ cannot be said to…

SPRINGER NATURE CUSTOMER SERVICES CENTRE GMBH,NEW DELHI vs. JCIT, INTERNATIONALO TAXATION, CIRCLE-3(1)(2), NEW DELHI

In the result, the appeal of the assessee is partly allowed

ITA 2534/DEL/2019[2013-14]Status: DisposedITAT Delhi14 Oct 2022AY 2013-14

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2013-14] Springer Nature Customer Services Vs Jcit Centre Gmbh (Earlier Known As (International Taxation), Springer Customer Centre Gmbh), Circle-3(1)(2), 7Th Floor, Vijaya Building, New Delhi. 17-Barakhamba Road, New Delhi-110001. Pan-Aascs1092B Appellant Respondent Appellant By S/Shri Himanshu Sinha, Bhuwan Dhooper & Vibhu Gupta, Advocates Respondent By Ms. Rashmita Jha, Cit Dr Date Of Hearing 20.09.2022 Date Of Pronouncement 14.10.2022

Section 143(3)Section 234ASection 234BSection 271Section 9(1)(vi)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- 20 | P a g e "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the…

SPRINGER VERLAG GMBH,NEW DELHI vs. DCIT, CIRCLE- 3(1)(2), INTERNATIONAL TAXATION , NEW DELHI

In the result, the appeals of the assessee are disposed of as

ITA 434/DEL/2019[2014-15]Status: DisposedITAT Delhi23 Aug 2022AY 2014-15

Bench: Shri N.K. Billaiya & Shri N.K. Choudhry

For Appellant: Shri Himanshu Sinha, AdvFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 9(1)(vi)

…rvice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of co…

SPRINGER VERLAG GMBH,NEW DELHI vs. ACIT, CIRCLE- 3(1)(2), INTERNATIONAL TAXATION , NEW DELHI

In the result, the appeals of the assessee are disposed of as

ITA 3826/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Aug 2022AY 2015-16

Bench: Shri N.K. Billaiya & Shri N.K. Choudhry

For Appellant: Shri Himanshu Sinha, AdvFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 9(1)(vi)

…rvice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of co…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3383/DEL/2018[2017-18]Status: DisposedITAT Delhi05 May 2022AY 2017-18

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3382/DEL/2018[2016-17]Status: DisposedITAT Delhi05 May 2022AY 2016-17

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3381/DEL/2018[2015-16]Status: DisposedITAT Delhi05 May 2022AY 2015-16

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3380/DEL/2018[2014-15]Status: DisposedITAT Delhi05 May 2022AY 2014-15

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3379/DEL/2018[2013-14]Status: DisposedITAT Delhi05 May 2022AY 2013-14

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3378/DEL/2018[2012-13]Status: DisposedITAT Delhi05 May 2022AY 2012-13

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SHARDA EDUCATIONAL TRUST ,GREATER NOIDA vs. ITO (TDS), INTERNATIONAL TAXATION, NOIDA

In the result, ITA.No.3377/Del

ITA 3377/DEL/2018[2011-12]Status: DisposedITAT Delhi05 May 2022AY 2011-12

Bench: Shri R.K. Panda & Shri Anubhav Sharma

For Appellant: Shri Gaurav Gupta, ARFor Respondent: Smt. Anupma Anand, CIT-DR
Section 12ASection 133ASection 195Section 201(1)

…ervice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

RUSSEL REYNOLDS ASSOCIATES INC.,NEW DELHI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI

The appeals are allowed

ITA 1166/DEL/2019[2014-15]Status: DisposedITAT Delhi26 Apr 2022AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaita No.1166/Del/2019 (Assessment Year : 2014-15)

Section 143(3)

…nagerial’.” He also referred to the case of (i) Intertek Testing Services India (P.) Ltd. In re [2008] 307 ITR 418 (AAR-New Delhi) (ii) Invensys Systems Inc. 317 ITR 438 (AAR) (iii) J.K. (Bombay) Limited v. CBDT [1979] 118 ITR 312 (iv) P No 28 of 1999, In re (242 ITR 208).” 4.2 Referring to the case of Sterio India Ltd. [2016] 72 taxmann.com 1 (Delhi HC), he submitted that the issue before Hon’ble Jurisdictional Delhi High Court was that Steria France was providing to Steria India centralized services like legal finance, human resources, communication risk control, information systems, controlling and consolidat…

M/S RUSSEL REYNOLDS ASSOCIATES INC.,NEW DELHI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI

The appeals are allowed

ITA 1165/DEL/2019[2013-14]Status: DisposedITAT Delhi26 Apr 2022AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaita No.1166/Del/2019 (Assessment Year : 2014-15)

Section 143(3)

…nagerial’.” He also referred to the case of (i) Intertek Testing Services India (P.) Ltd. In re [2008] 307 ITR 418 (AAR-New Delhi) (ii) Invensys Systems Inc. 317 ITR 438 (AAR) (iii) J.K. (Bombay) Limited v. CBDT [1979] 118 ITR 312 (iv) P No 28 of 1999, In re (242 ITR 208).” 4.2 Referring to the case of Sterio India Ltd. [2016] 72 taxmann.com 1 (Delhi HC), he submitted that the issue before Hon’ble Jurisdictional Delhi High Court was that Steria France was providing to Steria India centralized services like legal finance, human resources, communication risk control, information systems, controlling and consolidat…

ACIT, CIRCLE- 14(1), NEW DELHI vs. KAPOOR INDUSTRIES LTD., NEW DELHI

ITA 4215/DEL/2017[2014-15]Status: DisposedITAT Delhi29 Jan 2021AY 2014-15

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh

For Appellant: Shri R.K. Mehra, CAFor Respondent: Shri Shailesh Kumar, Senior DR
Section 195Section 40Section 9

…rvice of consultancy also necessarily entails human intervention. The consultant, who provides the consultancy service, has to be a human being. A machine cannot be regarded as a consultant." The AAR in the case of In Re: P.No. 28 of 1999, reported as [1999] 242 ITR 208 had observed:- "By technical services, we mean in this context services requiring expertise in technology. By consultancy services, we mean in this context advisory services. The category of technical and consultancy services are to some extent overlapping because a consultancy service could also be technical service. However, the category of con…

SUBRAMANIAM HARIHARAN,NEW DELHI vs. ACIT CIRCLE-61(1), NEW DELHI

ITA 7418/DEL/2019[2015-16]Status: DisposedITAT Delhi06 Nov 2020AY 2015-16

Bench: Ms. Suchitra Kamble & Shri Prashant Maharishi

Section 143(3)Section 195Section 37(1)Section 40Section 40a

…IN THE INCOME TAX APPELLATE TRIBUNAL [DELHI BENCH “D”: NEW DELHI] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER, & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA. No. 7418/Del/2019 Assessment Year: 2015-16. Shri Hariharan Subramaniam, Vs The Assistant Commissioner of Income Tax Subramaniam& Associates Circle 61(1) New Delhi Attorneys-at-Law, Centra Square Respondent Attorneys-at-Law, Centra Square Manohar Lal Khurana Marg, Bara Hindu Rao ( off Jhanshi Road New Delhi 110006 Pan AABPH0358K ( Appellant) Assessee by Shri Ajay Vohra, Sr. Advocate; Shri Neeraj Jain, Advocate; Sh. Aditya Vohra, Adv. & Sh. Arpit Goyal…

LEASE PLAN INDIA PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, both the appeals are allowed

ITA 6462/DEL/2015[2010-11]Status: DisposedITAT Delhi15 Jun 2020AY 2010-11

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajat Kumar Kuneel, Sr. DR
Section 195Section 234DSection 244ASection 40Section 9

…f the phrase „managerial or consultancy‟ services. He therefore held that the terms „managerial or consultancy services‟ are not defined in The Income Tax Act and held to be understood in the context of common parlance. He relied on the decision of the AAR in 242 ITR 208 wherein it has been held that the category of consultancy services also includes advisory services whether or not expertise in technology is required to perform it. He further relied upon the decision of CIT versus Bharti cellular Ltd 319 ITR 139 wherein the honourable Delhi High Court discussed meaning of the word „consultancy”. He also referred…

LEASE PLAN INDIA PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, both the appeals are allowed

ITA 6461/DEL/2015[2009-10]Status: DisposedITAT Delhi15 Jun 2020AY 2009-10

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajat Kumar Kuneel, Sr. DR
Section 195Section 234DSection 244ASection 40Section 9

…f the phrase „managerial or consultancy‟ services. He therefore held that the terms „managerial or consultancy services‟ are not defined in The Income Tax Act and held to be understood in the context of common parlance. He relied on the decision of the AAR in 242 ITR 208 wherein it has been held that the category of consultancy services also includes advisory services whether or not expertise in technology is required to perform it. He further relied upon the decision of CIT versus Bharti cellular Ltd 319 ITR 139 wherein the honourable Delhi High Court discussed meaning of the word „consultancy”. He also referred…

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