1995 and Horizontal Drilling International SA v. CIT

237 ITR 142Reported decision#9566 most cited

What is 1995 and Horizontal Drilling International SA v. CIT authority for?

Income of a non-resident is not taxable on a gross basis if it leads to a less favourable tax treatment compared to a resident performing similar services, especially considering Double Taxation Avoidance Agreements (DTAAs) that may exclude the application of specific domestic tax provisions like section 44D.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2019 to 2019.

Also referred to as

Horizontal Drilling International SA v CIT · 237 ITR 142 · gross basis taxation · net income taxation · DTAA · Article 24(2) · non-resident taxation · section 44D

Judgments citing 1995 and Horizontal Drilling International SA v. CIT

M/S Sumitomo Corporation, New Delhi vs. DCIT (International Taxation), New Delhi

Appeal are allowed

ITA 6385/DEL/2015[2012-13]Status: DisposedITAT Delhi01 Jul 2019AY 2012-13

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

M/S Sumitomo Corporation, New Delhi vs. DCIT (International Taxation), New Delhi

Appeal are allowed

ITA 6384/DEL/2015[2011-12]Status: DisposedITAT Delhi01 Jul 2019AY 2011-12

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

Sumitomo Corporation, New Delhi vs. DCIT, New Delhi

Appeal are allowed

ITA 1114/DEL/2015[2010-11]Status: DisposedITAT Delhi01 Jul 2019AY 2010-11

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3714/DEL/2014[2004-05]Status: DisposedITAT Delhi01 Jul 2019AY 2004-05

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3713/DEL/2014[2003-04]Status: DisposedITAT Delhi01 Jul 2019AY 2003-04

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3696/DEL/2014[2002-03]Status: DisposedITAT Delhi01 Jul 2019AY 2002-03

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

DDIT, New Delhi vs. M/S. Sumitomo Corporation, New Delhi

Appeal are allowed

ITA 3695/DEL/2014[2001-02]Status: DisposedITAT Delhi01 Jul 2019AY 2001-02

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

Sumitomo Corporation, Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3677/DEL/2014[2003-04]Status: DisposedITAT Delhi01 Jul 2019AY 2003-04

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

Sumitomo Corporation, Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3676/DEL/2014[2002-03]Status: DisposedITAT Delhi01 Jul 2019AY 2002-03

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

Sumitomo Corporation, New Delhi vs. DDIT, New Delhi

Appeal are allowed

ITA 3675/DEL/2014[2001-02]Status: DisposedITAT Delhi01 Jul 2019AY 2001-02

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

…44D of the Act. The Ld. AR submitted that taxation on Gross Basis in the instant case as upheld by the CIT(A) is an arbitrary and absurd interpretation. The Ld. AR relied upon the decisions in cases of Boston Consulting 94 ITD 31 (Mum) and Horizontal Drilling 237 ITR 142 (AAR). The Ld. AR further submitted that it is also settled that, an interpretation, which lead to absurdity, otherwise should not be preferred. Further, the Ld. AR submitted that as per Article 24(2) of the India- Japan DTAA, the income of the PE should not be taxed less favorably than the resident of India doing similar business as in case resi…

M/S Hns India vs. At Inc., Gurgaon

In the result, the appeal is dismissed

ITA 3939/DEL/2013[2002-03]Status: DisposedITAT Delhi28 Feb 2019AY 2002-03

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2002-03

Section 115ASection 44D

…llant had provided installation services for a period exceeding 120 days in any twelve months period. Further reliance of the appellant on Brown and Root Inc V CIT 237 ITR 156 AAR, Advance ruling No. P-l lof 1995 and Horizontal Drilling International SA V CIT 237 ITR 142 is also misplaced as in these case laws, requirement of 120 days was not fulfilled whereas in present case under consideration, installation project has undisputedly continued for a period exceeding 120 days in any twelve months period. 7.5 In view of discussion supra, 1 hold that the appellant is having PE in India within meaning of Article 5(2…

1995 and Horizontal Drilling International SA v. CIT (237 ITR 142) — Cited in 11 Judgments | BharatTax