AEG Aktiengesellschaft v. CIT

Sms Group Gmbh, Delhi vs. ACIT.Circle-3(1)(2), New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh & Shri Vimal Kumar

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT, Circle 3(1)(2), International Txation, New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh & Shri Vimal Kumar

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT Circle - 3(1)(2) Intl. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh & Shri Vimal Kumar

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) Int. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh & Shri Vimal Kumar

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2), Int. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh & Shri Vimal Kumar

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Mevac Uk Ltd., New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) (Int. Tax.), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Mevac Uk Ltd., New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh, New Delhi vs. DCIT (International Taxation), New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. Aacit, Circle- 3(1)(2), Intl. Taxation, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl Taxation, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. Addl. DIT, New Delhi

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

…viewed in isolation and needs to be examined in its proper prospective taking into account the nature of supplies made. 8. The cases relied by the Assessing Officer have no bearing to the facts of the case. In the case of AEG Aktiengesellschaft Vs. CIT (2004) 267 ITR 209-(KAR) the German company had undertaken to supply electrical portions of the Mill and payments for drawings and documents were received separately for rendering services. These drawings were not linked to supply contract and thus held as fees for technical services. In second case of GMP International GmbH Vs. DIT (Intl. Tax) AAR/837/2009, the as…

Sms Concast Ag, New Delhi vs. DCIT (International Taxation), New Delhi

Appeal is allowed

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

…ing is nothing but rendering of technical services. Hence, has to be treated as FTS under section 9(1)(vii) of the Act. While coming to such conclusion, he relied upon a decision of Hon’ble Karnataka High Court in case of AEG Aktiengesllschaft Vs. CIT, [2004] 267 ITR 209. 7. Having held so, he proceeded to examine whether the fees received can be deemed to accrue or arise in India within the meaning of section 9. While dealing with this aspect, he observed that the ratio laid down in case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 will be of no help to the assessee due to introduction…

Dsd Noell Gmbh, New Delhi vs. DCIT Circle-1(2)(2) International Taxation, New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…ately specified, this aspect would require a closer scrutiny and determination of facts, which we do not propose to do in the present proceedings. (Emphasis supplied) Hon’ble Karnataka High Court in Aeg Aktiengesllschaft vs Commissioner Of Income- Tax: (2004) 267 ITR 209 (KAR) held that burden is on the assessee to show that the payment received were not for technical services; “ 10. Further, at paragraph 8 of the order, the Tribunal has observed that since the agreement provides for two different payments and the payments under consideration have clearly been termed in the agreement as "engineering fees", there…

Dsd Noell Gmbh, New Delhi vs. DCIT Circle -1(2)(2), International Taxation, New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…ately specified, this aspect would require a closer scrutiny and determination of facts, which we do not propose to do in the present proceedings. (Emphasis supplied) Hon’ble Karnataka High Court in Aeg Aktiengesllschaft vs Commissioner Of Income- Tax: (2004) 267 ITR 209 (KAR) held that burden is on the assessee to show that the payment received were not for technical services; “ 10. Further, at paragraph 8 of the order, the Tribunal has observed that since the agreement provides for two different payments and the payments under consideration have clearly been termed in the agreement as "engineering fees", there…