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

242 ITR 208Reported decision1999#3258 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?

Fees for technical services (FTS) under Section 9(1)(vii) are not taxable if they are not 'technical' in nature or rendered in India. Services are not necessarily FTS if they are managerial and provided to an associated enterprise.

36

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2014 to 2025.

Also referred to as

J.K. (Bombay) Limited v. CBDT · 242 ITR 208 · fees for technical services · section 9(1)(vii) · managerial services · associated enterprise · non-resident · tax treaty

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

Giesecke & Devrient India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed partly for statistical purposes

ITA 3865/DEL/2015[2010-11]Status: DisposedITAT Delhi01 May 2020AY 2010-11

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kant

Section 143(3)Section 144CSection 92C(2)Section 92C(3)

…the case of Intertek Testing Services India Pvt. Limited 307 ITR 418 has observed that consultancy services could also be technical in nature and these two expressions are not to be treated as water tight compartments. The AAR in the case of P. No. 28 of 1999 242 ITR 208 observed 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 because a consultancy services could also be technical service. However, the category…

General Motors Overseas Corporation, Mumbai vs. Deputy Director of Income Tax (International Taxation) 3(1), Mumbai

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

ITA 381/MUM/2018[2010-11]Status: DisposedITAT Mumbai06 Mar 2020AY 2010-11

Bench: Shri Laliet Kumar & Shri M. Balaganesha.Y : 2004-05 :

For Appellant: S.K. Aggarwal Advocate For AssesseeFor Respondent: Avinish Tiwari DR for Revenue
Section 234BSection 44DSection 92

…k). Relevant extract of assessment order for AY 2001-02 is also reproduced hereunder for ease of Your Honour's reference. "Since the issue regarding the existence of Permanent Establishment has already been decided by the Hon'ble Authority for Advance Ruling (242 ITR 208), the income of the assesse from the activities carried on in India as per the management provision agreement is taxable as business income." 15.19. Without prejudice to the above and even in case it is assumed (without admission) that the payments made by GMIL under MPA qualifies as FTS, the Ld. AO erred in not appreciating that provisions of Ar…

General Motors Overseas Corporation, Gurgaon vs. DDIT (It) 3(1), Mumbai

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

ITA 2787/MUM/2014[2008-09]Status: DisposedITAT Mumbai06 Mar 2020AY 2008-09

Bench: Shri Laliet Kumar & Shri M. Balaganesha.Y : 2004-05 :

For Appellant: S.K. Aggarwal Advocate For AssesseeFor Respondent: Avinish Tiwari DR for Revenue
Section 234BSection 44DSection 92

…k). Relevant extract of assessment order for AY 2001-02 is also reproduced hereunder for ease of Your Honour's reference. "Since the issue regarding the existence of Permanent Establishment has already been decided by the Hon'ble Authority for Advance Ruling (242 ITR 208), the income of the assesse from the activities carried on in India as per the management provision agreement is taxable as business income." 15.19. Without prejudice to the above and even in case it is assumed (without admission) that the payments made by GMIL under MPA qualifies as FTS, the Ld. AO erred in not appreciating that provisions of Ar…

General Motors Overseas Corporation, Gurgaon vs. DDIT (It) 3(1), Mumbai

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

ITA 1986/MUM/2014[2009-10]Status: DisposedITAT Mumbai06 Mar 2020AY 2009-10

Bench: Shri Laliet Kumar & Shri M. Balaganesha.Y : 2004-05 :

For Appellant: S.K. Aggarwal Advocate For AssesseeFor Respondent: Avinish Tiwari DR for Revenue
Section 234BSection 44DSection 92

…k). Relevant extract of assessment order for AY 2001-02 is also reproduced hereunder for ease of Your Honour's reference. "Since the issue regarding the existence of Permanent Establishment has already been decided by the Hon'ble Authority for Advance Ruling (242 ITR 208), the income of the assesse from the activities carried on in India as per the management provision agreement is taxable as business income." 15.19. Without prejudice to the above and even in case it is assumed (without admission) that the payments made by GMIL under MPA qualifies as FTS, the Ld. AO erred in not appreciating that provisions of Ar…

General Motors Overseas Corporation vs. ACIT (It) 3(1), Mumbai

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

ITA 1282/MUM/2009[2004-2005]Status: DisposedITAT Mumbai06 Mar 2020AY 2004-2005

Bench: Shri Laliet Kumar & Shri M. Balaganesha.Y : 2004-05 :

For Appellant: S.K. Aggarwal Advocate For AssesseeFor Respondent: Avinish Tiwari DR for Revenue
Section 234BSection 44DSection 92

…k). Relevant extract of assessment order for AY 2001-02 is also reproduced hereunder for ease of Your Honour's reference. "Since the issue regarding the existence of Permanent Establishment has already been decided by the Hon'ble Authority for Advance Ruling (242 ITR 208), the income of the assesse from the activities carried on in India as per the management provision agreement is taxable as business income." 15.19. Without prejudice to the above and even in case it is assumed (without admission) that the payments made by GMIL under MPA qualifies as FTS, the Ld. AO erred in not appreciating that provisions of Ar…

ACIT, Circle - 25, Kolkata vs. Sri Subhatosh Majumder, Kolkata

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

ITA 2006/KOL/2017[2011-12]Status: DisposedITAT Kolkata26 Feb 2020AY 2011-12

Bench: Shri A.T. Varkery, Jm & Dr. Arjun Lal Saini, Am ]

Section 194JSection 195Section 195(1)Section 40Section 9(1)(vii)

…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…

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4050/DEL/2015[2012-13]Status: DisposedITAT Delhi28 May 2019AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…ice 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 Advance Ruling P. No. 28 of 1999, In re [1999] 242 ITR 208/105 Taxman 218 (AAR - New Delhi) 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 serv…

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4049/DEL/2015[2011-12]Status: DisposedITAT Delhi28 May 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…ice 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 Advance Ruling P. No. 28 of 1999, In re [1999] 242 ITR 208/105 Taxman 218 (AAR - New Delhi) 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 serv…

ITO, WD-7(1), Kolkata vs. M/S M.S.K. Travels and Tours Ltd., Kolkata

Appeal is dismissed

ITA 284/KOL/2015[2008-2009]Status: DisposedITAT Kolkata22 Jun 2018AY 2008-2009

Bench: Hon’Ble Shri S.S.Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri N.B.Som, Addl. CIT, Sr.DRFor Respondent: Shri Bikash Chanda, AR
Section 143(3)Section 195Section 40Section 5(2)Section 9Section 9(1)(i)Section 9(2)Section 90(1)

…ed position in law that protocol is an indispensable part of the treaty with the same binding force as the main clauses therein. Hon'ble Authority for Advance Ruling, relying upon Dr. Klaus Vogel's commentary on Double "Taxation Conventions and as reported in 242 ITR 208 (relevant portion at p. 225), has observed that protocol is an integral part of the treaty and its binding force is equal to that of the principal treaty. The provisions of the aforesaid DTAA are, therefore, required to be read with the protocol clauses and are subject to the provisions contained in such protocol, including the one reproduced abo…

Pahilajrai Jaikishan, Mumbai vs. DCIT 19(3), Mumbai

In the result, the appeal is allowed

ITA 994/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…ce 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 Advance Ruling P. No. 28 of 1999, In re [1999] 242 ITR 208/105 Taxman 218 (AAR - New Delhi) had observed:— & ITA No. 994/Mum/2014 "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…

Asst CIT 19(3), Mumbai vs. Pahilajrai Jaikishin, Mumbai

In the result, the appeal is allowed

ITA 1562/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…ce 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 Advance Ruling P. No. 28 of 1999, In re [1999] 242 ITR 208/105 Taxman 218 (AAR - New Delhi) had observed:— & ITA No. 994/Mum/2014 "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…

Commissioner of Income Tax -IV vs. Mis. Grup Ism P. Ltd

The appeal is dismissed

ITA/325/2014HC Delhi29 May 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 194JSection 260ASection 40Section 9

…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:- ITA 325/2014 Page 13 "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…

Commissioner of Income Tax-IV vs. M/S. Grup Ism P. Ltd

The appeal is dismissed

ITA-325/2014HC Delhi29 May 2015
Section 194JSection 260ASection 40Section 9

…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:- 2015:DHC:4925-DB ITA 325/2014 Page 13 "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 al…

Director of Income Tax (Intl. Tax.)-II

ITA/292/2014HC Delhi18 Sept 2014
Section 195Section 195(2)Section 9Section 9(1)Section 9(1)(i)

…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 catego…

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

ITA - 735 / 2011HC Delhi05 Feb 2014

…d control of Korean company, it was held that Malaysian company did not have ―permanent establishment‖ in India as per Article 7 of DTAA between Indian and Malaysia. In P.No.28 of 1999 In Re Authority for Advance Ruling in its decision reported in [2000] 242 ITR 208 took an opposite view after noticing that the Indian joint venture did not pay any remuneration to the foreign employees and the employees continued to be the employees of the foreign company and were paid by the foreign company. Thus, the applicant company was rendering services through its employees to the Indian company, therefore this c…

Director of Income Tax vs. M/S E Funds It Solution

The appeals are disposed of

ITA/735/2011HC Delhi05 Feb 2014

…d control of Korean company, it was held that Malaysian company did not have ―permanent establishment‖ in India as per Article 7 of DTAA between Indian and Malaysia. In P.No.28 of 1999 In Re Authority for Advance Ruling in its decision reported in [2000] 242 ITR 208 took an opposite view after noticing that the Indian joint venture did not pay any remuneration to the foreign employees and the employees continued to be the employees of the foreign company and were paid by the foreign company. Thus, the applicant company was rendering services through its employees to the Indian company, therefore this c…