ADIT v. E-Funds IT Solution Inc.

301 CTR 601Supreme Court of India2018#3366 most cited

What is ADIT v. E-Funds IT Solution Inc. authority for?

Once a transfer pricing analysis has been undertaken in respect of an Indian associated enterprise (AE), nothing further needs to be attributed to it as a Permanent Establishment (PE), as this would extinguish the need for attribution of additional profits to the alleged PE.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2019 to 2024.

Also referred to as

ADIT v. E-Funds IT Solution Inc. · transfer pricing analysis · associated enterprise · permanent establishment · attribution of profits · arm's length · income attribution

Sections most often in play

Section 139(1)Section 143(1)Section 144CSection 244A

Issues it is cited on

dependent agent petransfer pricing orderfixed place pefar analysispermanent establishmentsection 10atransfer pricing adjustmentarm's length pricetax treatysection 195section 144cassociated enterprise

Judgments citing ADIT v. E-Funds IT Solution Inc.

DCIT, International Taxation, Circle- 1(1)(1), New Delhi vs. Adobe Systems Software Ireland Ltd., Dublin, Ireland

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 5028/DEL/2017[2011-12]Status: DisposedITAT Delhi27 Jul 2022AY 2011-12

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

DCIT, International Taxation, Circle- 1(1)(1), New Delhi vs. Adobe Systems Software Ireland Ltd., Dublin, Ireland

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 5027/DEL/2017[2010-11]Status: DisposedITAT Delhi27 Jul 2022AY 2010-11

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. Adobe Systems Software Ireland Ltd., New Delhi

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 5026/DEL/2017[2006-07]Status: DisposedITAT Delhi27 Jul 2022AY 2006-07

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

DCIT, International Taxation, Circle- 1(1)(1), New Delhi vs. Adobe Systems Software Ireland Ltd., Dublin, Ireland

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 5025/DEL/2017[2005-06]Status: DisposedITAT Delhi27 Jul 2022AY 2005-06

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

DCIT, International Taxation, Circle- 1(1)(1), New Delhi vs. Adobe Systems Software Ireland Ltd., Dublin, Ireland

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 5024/DEL/2017[2004-05]Status: DisposedITAT Delhi27 Jul 2022AY 2004-05

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

Adobe Systems Software Ireland Ltd., Ireland vs. DCIT, Circle- 1(1)(1), International Taxation, New Delhi

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 4923/DEL/2017[2012-13]Status: DisposedITAT Delhi27 Jul 2022AY 2012-13

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

Adobe Systems Software Ireland Ltd., Ireland vs. DCIT, Circle- 1(1)(1), International Taxation, New Delhi

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 4922/DEL/2017[2011-12]Status: DisposedITAT Delhi27 Jul 2022AY 2011-12

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

Adobe Systems Software Ireland Ltd., Ireland vs. DCIT, Circle- 1(1)(1), International Taxation, New Delhi

In the result, appeals by the assessee stand allowed in terms of the above order and the Revenue’s appeal stand dismissed as above

ITA 4921/DEL/2017[2010-11]Status: DisposedITAT Delhi27 Jul 2022AY 2010-11

Bench: Shri Shamim Yahya & Shri Chandra Mohan Garg

Section 9(1)(vi)

…the alleged PE > As per the judgements of the Hon’ble Supreme Court in the case of DIT v. Morgan Stanley Co. Inc [2007] 292 ITR416 (SC), ADIT v. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC), 17 ITA No.5027/Del/2017 & Ors. Honda Motor Co. Ltd vs. ADIT (301 CTR 601) (SC) and of the Hon’ble Delhi High Court in the case of Adobe Systems Inc. v. ADIT [WP(C) 2384, 2385, 2390 of 2013] and DIT v. BBC Worldwide Ltd. [2011] 203 Taxman 554 (Delhi) (please refer to pages 273 to 402 of the case law compilation), once a transfer pricing analysis has been undertaken in respect of a instant case), nothing further would b…

Jas Forwarding Worldwide Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

ITA 1687/DEL/2016[2011-12]Status: DisposedITAT Delhi26 Jul 2021AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Salil Kapoor advocateFor Respondent: Shri M. Barnwal, Sr. DR
Section 143Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 40Section 92CSection 92C(2)

…s taking into account all the risk-taking functions of the multinational enterprise. In such a case nothing further would be left to attribute to the PE..." This principle of law has been recently again upheld and applied by SC in the case of Honda Motor Co. (301 CTR 601 (SC)) and E-funds Solutions (399 ITR 34 (SC)). 20. Further, we find that the Ld. CIT(A) has discussed the essential ingredients for attracting Section 9(1) of the Act and has held that the non-residents are liable to tax in India on account of 'business connection' and has thereafter has given a finding that there is no business connection in Ind…

Jas Forwarding Worldwide Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

ITA 2484/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Jul 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Salil Kapoor advocateFor Respondent: Shri Surendra Pal [CIT] – DR
Section 143Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 40Section 92CSection 92C(2)

…s taking into account all the risk-taking functions of the multinational enterprise. In such a case nothing further would be left to attribute to the PE..." This principle of law has been recently again upheld and applied by SC in the case of Honda Motor Co. (301 CTR 601 (SC)) and E-funds Solutions (399 ITR 34 (SC)). 20. Further, we find that the Ld. CIT(A) has discussed the essential ingredients for attracting Section 9(1) of the Act and has held that the non-residents are liable to tax in India on account of 'business connection' and has thereafter has given a finding that there is no business connection in Ind…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- 2(2)(1), International Taxation, New Delhi

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 3327/DEL/2018[2013-14]Status: HeardITAT Delhi02 Sept 2019AY 2013-14

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 4560/Del/2018 (Assessment Year: 2005-06) ITA No. 1946/Del/2017 (Assessment Year: 2007-08) ITA No. 5020/Del/2018 (Assessment Year: 2009-10) ITA No. 3327/Del/2018 (Assessment Year: 2013-14) LG Electronics Inc. Korea DCIT(International Vs. (LGEK), Taxation), Amti Shrivastava, Advocate, Circle-2(2)(1) C/o. AZB & Partners Advocates Noida, Room No. 312, and Solicitors, 3rd Floor, Aayakar Bhawan, Plot No. A8, Sector-4, Plot No. A-2D, Sector-24, Noida Noida PAN: AAACL7929E…

M/S. Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT (International Taxation), Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 1946/DEL/2017[2007-08]Status: HeardITAT Delhi02 Sept 2019AY 2007-08

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 4560/Del/2018 (Assessment Year: 2005-06) ITA No. 1946/Del/2017 (Assessment Year: 2007-08) ITA No. 5020/Del/2018 (Assessment Year: 2009-10) ITA No. 3327/Del/2018 (Assessment Year: 2013-14) LG Electronics Inc. Korea DCIT(International Vs. (LGEK), Taxation), Amti Shrivastava, Advocate, Circle-2(2)(1) C/o. AZB & Partners Advocates Noida, Room No. 312, and Solicitors, 3rd Floor, Aayakar Bhawan, Plot No. A8, Sector-4, Plot No. A-2D, Sector-24, Noida Noida PAN: AAACL7929E…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- Noida, International Taxation, Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 6916/DEL/2017[2008-09]Status: HeardITAT Delhi02 Sept 2019AY 2008-09

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 4560/Del/2018 (Assessment Year: 2005-06) ITA No. 1946/Del/2017 (Assessment Year: 2007-08) ITA No. 5020/Del/2018 (Assessment Year: 2009-10) ITA No. 3327/Del/2018 (Assessment Year: 2013-14) LG Electronics Inc. Korea DCIT(International Vs. (LGEK), Taxation), Amti Shrivastava, Advocate, Circle-2(2)(1) C/o. AZB & Partners Advocates Noida, Room No. 312, and Solicitors, 3rd Floor, Aayakar Bhawan, Plot No. A8, Sector-4, Plot No. A-2D, Sector-24, Noida Noida PAN: AAACL7929E…

Jas Forwarding Worldwide Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the Assessee is allowed whereas the appeal of the Revenue is dismissed

ITA 3296/DEL/2011[2007-08]Status: DisposedITAT Delhi08 May 2019AY 2007-08

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year:2007-08

For Respondent: Shri Robin Rawan, Sr. DR
Section 143(2)Section 143(3)Section 40

…sis taking into account all the risk-taking functions of the multinational enterprise. In such a case nothing further would be left to attribute to the PE…” This principle of law has been recently again upheld and applied by SC in the case of Honda Motor Co. (301 CTR 601 (SC)) and E-funds Solutions (399 ITR 34 (SC)). 20. Further, we find that the Ld. CIT(A) has discussed the essential ingredients for attracting Section 9(1) of the Act and has held that the non-residents are liable to tax in India on account of ‘business connection’ and has thereafter has given a finding that there is no business connection in In…

DCIT, New Delhi vs. M/S Jas Forwarding World Pvt. Ltd., New Delhi

The appeal of the Assessee is allowed whereas the appeal of the Revenue is dismissed

ITA 3222/DEL/2011[2007-08]Status: DisposedITAT Delhi08 May 2019AY 2007-08

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year:2007-08

For Respondent: Shri Robin Rawan, Sr. DR
Section 143(2)Section 143(3)Section 40

…sis taking into account all the risk-taking functions of the multinational enterprise. In such a case nothing further would be left to attribute to the PE…” This principle of law has been recently again upheld and applied by SC in the case of Honda Motor Co. (301 CTR 601 (SC)) and E-funds Solutions (399 ITR 34 (SC)). 20. Further, we find that the Ld. CIT(A) has discussed the essential ingredients for attracting Section 9(1) of the Act and has held that the non-residents are liable to tax in India on account of ‘business connection’ and has thereafter has given a finding that there is no business connection in In…