ACIT v. Paradigm Geophysical Pty. Ltd.

DENSO INTERNATIONAL ASIA CO., LTD.,THAILAND vs. THE ASSISTANT COMMISSIONER OF INCOME TAX , NEW DELHI

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.402/िद"ी/2025(िन.व. 2022-23) Denso International Asia Co. Ltd., 888 Moo 1, Bangna-Trad Road Km 27 5, Bangbo Subdistrict, Samutprakarn Province, Thailand, 10560 ...... अपीलाथ"/Appellant Pan: Aadcd-4652-K बनाम Vs. Assistant Commissioner Of Income Tax, Circle Interantional Taxation 1(2)(2), Civic Centre, ..... "ितवादी/Respondent Minto Road, New Delhi 110002 अपीलाथ" "ारा/ Appellant By : S/Shri Vishal Kalra, Saumyendra Tomar, Advocates & Ms. Taranjeet Kaur, Chartered Accountant "ितवादी"ारा/Respondent By : Shri Nikhil Kumar Govila, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 10/07/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 08/10/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 28.11.2024, Passed U/S. 143(3) R.W.S 144C(13) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’). 2. Facts Of The Case In Brief As Emanating From Records Are: The Assessee Is A Tax Resident Of Thailand. The Assessee Acts As Regional Service Centre Of The Denso

…ns would apply to the items. However, in case it is found that those provisions are not applicable then the items of income would have to be considered in Article taxing business income. Reliance for this can be placed on Paradigm Geophysical Pty. Ltd. [2008] 25 SOT 94. Further, that where there is no FTS clause available in the treaty with a country, then the income in question would be assessable as business income and it can be taxed in India only if there is a permanent establishment in India and the income is attributable to activities or functions performed by such permanent establishment. Reliance for same…

HONDA TRADING ASIA CO. LTD.,THAILAND vs. DCIT, INTL. TAXATION CIRCLE, NOIDA

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

…iskil (Sendirian) Berhard v. CIT [1996] 222 ITR 551 (AAR) • Bangkok Glass Industry Co. Ltd. v. ACIT [2013] (34 taxmann.com 77) (Madras HC) • DCIT v. Michelin ROH Co. Ltd. [2022] 138 taxmann.com 497 (Delhi - Trib.) • ACIT v Paradigm Geophysical Pty Ltd [2008] (25 SOT 94) (Delhi ITAT) 21. The Ld. Sr. Counsel for assessee submitted that the assessee vide its Income Tax Return for the subject assessment year, offered to tax the receipts in the nature of fee for technical services (FTS) amounting to Rs.4,74,73,450 subject to tax @ 10%. Accordingly, the tax amounting Rs. 50,36,458 was paid by the Assessee on such rece…

HONDA TRADING ASIA CO. LTD.,NEW DELHI vs. DCIT, NOIDA

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

…iskil (Sendirian) Berhard v. CIT [1996] 222 ITR 551 (AAR) • Bangkok Glass Industry Co. Ltd. v. ACIT [2013] (34 taxmann.com 77) (Madras HC) • DCIT v. Michelin ROH Co. Ltd. [2022] 138 taxmann.com 497 (Delhi - Trib.) • ACIT v Paradigm Geophysical Pty Ltd [2008] (25 SOT 94) (Delhi ITAT) 21. The Ld. Sr. Counsel for assessee submitted that the assessee vide its Income Tax Return for the subject assessment year, offered to tax the receipts in the nature of fee for technical services (FTS) amounting to Rs.4,74,73,450 subject to tax @ 10%. Accordingly, the tax amounting Rs. 50,36,458 was paid by the Assessee on such rece…

DENSO INTERNATIONAL ASIA CO., LTD.,THAILAND vs. ACIT, CIRCLE INTERNATIONAL TAX 1(2)(2), NEW DELHI

The appeal is allowed and the impugned addition quashed

Bench: SHRI G.S. PANNU, HON'BLE (Vice President), SHRI ANUBHAV SHARMA (Judicial Member)

…ns would apply to the items. However, in case it is found that those provisions are not applicable then the items of income would have to be considered in Article taxing business income. Reliance for this can be placed on Paradigm Geophysical Pty. Ltd. [2008] 25 SOT 94. Further, that where there is no FTS clause available in the treaty with a country, then the income in question would be assessable as business income and it can be taxed in India only if there is a permanent establishment in India and the income is attributable to activities or functions performed by such permanent establishment. Reliance for same…

SOLVAY ASIA PACIFIC PTE LTD,BANGKOK vs. DCIT, CIRCLE-3(1)(2), INTERNATIONAL TAXATION, NEW DELHI

In the result, the appeal of the assessee is allowed

Bench: Sh. Saktijit Dey & Dr. B. R. R. Kumar

…a. Similar, proposition laid down by the Hon’ble High Court of Madras in the case of Bangkok Glass Industry Co. Ltd. Vs. ACIT (34 Taxman 77). 6 Solvay Asia Pacific Pte. Ltd. 16. The Co-ordinate Bench of Tribunal in the case of Paradigm Geophysical Pvt. Ltd. (25 SOT 94) held that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the tax treaty, then those provisions would apply to the items. However, in case it is found that those provisions are not applicable then the items of income would have to be considered in…

ACIT CIRCLE-2(2)(1), INTERNATIONAL TAXATION, NEW DELHI vs. MICHELIN ROH CO. LTD., THAILAND

In the result, both the appeals of the Revenue are dismissed

Bench: Dr. B. R. R. Kumarms. Astha Chandra

…paid as towards technical services falling for consideration under art. 7. Since the said income does not fall as miscellaneous income, the same cannot be brought under art. 22 ..." Hon'ble Delhi Tribunal in the case of Paradigm Geophysical Pty. Ltd. [2008] 25 SOT 94 The Hon'ble Delhi Tribunal while ruling in the case held that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the tax treaty, then those provisions would apply to the items. However, in case it is found that those provisions are not Michelin ROH Co…

ACIT CIRCLE-2(2)(1), INTERNATIONAL TAXATION, NEW DELHI vs. MICHELIN ROH CO. LTD., THAILAND

In the result, both the appeals of the Revenue are dismissed

Bench: Dr. B. R. R. Kumarms. Astha Chandra

…paid as towards technical services falling for consideration under art. 7. Since the said income does not fall as miscellaneous income, the same cannot be brought under art. 22 ..." Hon'ble Delhi Tribunal in the case of Paradigm Geophysical Pty. Ltd. [2008] 25 SOT 94 The Hon'ble Delhi Tribunal while ruling in the case held that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the tax treaty, then those provisions would apply to the items. However, in case it is found that those provisions are not Michelin ROH Co…

DCIT, CIRCLE-2(2)(1), NEW DELHI vs. MICHELIN ROH CO. LTD., GURGAON

In the result, the Revenue’s appeal is dismissed

…paid as towards technical services falling for consideration under art. 7. Since the said income does not fall as miscellaneous income, the same cannot be brought under art. 22 ... " Hon'ble Delhi Tribunal in the case of Paradigm Geophysical Pty. Ltd. [2008] 25 SOT 94 The Hon'ble Delhi Tribunal while ruling in the case held that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the tax treaty, then those provisions would apply to the items. However, in case it is found that those provisions are not applicable then…

ADIT INTL. TAXATION, DEHRADUN vs. M/S. PARADIGM GEOPHYSICAL PTY LTD.,, DEHRADUN

In the result both the appeals of the revenue are dismissed

Bench: Shri J. Sudhakar Reddy & Ms. Suchitra Kambleay: 2005-06 & Ay: 2005-06 Adit International Taxation Vs. Paradigm Geophysical P.Ltd. Dehradun C/O Nangia & Co. 75/7, Rajpur Road Dehradun Pan: Aadcp 5999B (Appellant) (Respondent)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AY: 2005-06 And AY: 2005-06 ADIT International Taxation vs. Paradigm Geophysical P.Ltd. Dehradun C/o Nangia & Co. 75/7, Rajpur Road Dehradun PAN: AADCP 5999B (Appellant) (Respondent) Appellant by : Sh. Raman Kant Garg, Sr.D.R. Respondent by : Sh. Amit Arora, C.A. ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER Both these appeals are filed by the Revenue and are directed against identical orders of the Ld.CIT(A)-II, Dehradun for the A.Y. 2005-06 dated 27…

ITO (TDS), NEW DELHI vs. BHARTI AIRTEL LTD., GURGAON

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…

ITO (TDS), NEW DELHI vs. BHARTI AIRTEL LTD., GURGAON

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…

BHARTI AIRTEL LTD.,GURGAON vs. ITO (TDS), NEW DELHI

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…

BHARTI AIRTEL LTD.,GURGAON vs. ITO (TDS), NEW DELHI

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…

BHARTI AIRTEL LTD.,GURGAON vs. ITO (TDS), NEW DELHI

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…

BHARTI AIRTEL LTD.,GURGAON vs. ITO (TDS), NEW DELHI

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

…earning of income is attributable to activities or functions performed by such permanent establishment. This view is supported by the decision of the Coordinate Bench. 42. The Delhi Bench of the Tribunal in the case of ACIT vs. Paradigm Geophysical Pty. Ltd. 122 ITD 155 (2010) held as follows:- “What art. 7(7) seems to convey is that where the business profits of the non-resident include items of income for which specific or separate provisions have been made in other articles of the treaty, then those provisions would apply to those items. Per contra, if it is" found that those provisions ITA Nos. 3593 TO 359…