Anglo French Textile Company Ltd. v. CIT

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…ny activity in India, hence only a conservative bases, 10% of global profit percentage as applied to India sales could at best be attributed as profit attributable to the alleged PE, as held in the following cases:  Anglo French Textile Company Ltd. vs CIT : 23 ITR 101 (SC)  CIT Vs Bertrams Scotts Ltd.: 31 Taxman 444 (Cal. HC) On the above basis, the profit of the PE comes out to Rs. 471,37,848 Cr [Rs. 2382,08,74,842 Cr * (Profit attribution @ 10% * Profit margin @ 1.98 %)] and at the most the aforesaid amount can be disallowed under section 40(a)(i) of the Act.” 38. On the other hand, ld. DR of the Revenue su…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…ny activity in India, hence only a conservative bases, 10% of global profit percentage as applied to India sales could at best be attributed as profit attributable to the alleged PE, as held in the following cases:  Anglo French Textile Company Ltd. vs CIT : 23 ITR 101 (SC)  CIT Vs Bertrams Scotts Ltd.: 31 Taxman 444 (Cal. HC) On the above basis, the profit of the PE comes out to Rs. 471,37,848 Cr [Rs. 2382,08,74,842 Cr * (Profit attribution @ 10% * Profit margin @ 1.98 %)] and at the most the aforesaid amount can be disallowed under section 40(a)(i) of the Act.” 38. On the other hand, ld. DR of the Revenue su…

Kreuz Challenger Pte Ltd, Singapure vs. ACIT, International Taxation Circle2(1)(2), New Delhi

The appeal of the assessee is allowed

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year: 2019-20 Kreuz Challenger Pte Ltd., Vs Acit, 2, Venture Drive, International Taxation #24-01 Vision Exchange, Circle 2(1)(2), Singapore , 999999 New Delhi. Pan : Aahck3082A

…ruing or arising, whether directly or indirectly, through or from any business connection” occurred in Section 42 of the Income Tax Act, 1922 as well. The said section came up for consideration before this Court in Anglo- French Textile Co.Ltd. v. CIT [(1953) 23 ITR 101… xxx xxx xxx The counsel for the revenue Dr. Gaurishankar vehemently contended before us that Section 44AC read with Section 206C are only machinery provisions and not charging sections. We see force in this plea. The charge for the levy of the income that accrued or arose is laid by the charging sections, viz., Sections 5 to 9 and not by virtue…

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

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

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

…vision of section 37(1) of the Act and also made submission regarding history of legislation. Ld. Counsel for the assessee placed reliance on the judgement of the Hon’ble Supreme Court in the case of Sri Venkata Satyanarayana Rice Mill Contractors Co vs. CIT 223 ITR 101 (SC) and the judgement of Hon’ble Delhi High Court rendered in the case of CIT vs Ranbaxy Laboratories Ltd. in ITA No.743/2008 (Del.) and the decision of Co-ordinate Bench of the Tribunal in assessee’s own case pertaining to AY 2009-10. 72. On the other hand, Ld. Special Counsel for the Revenue opposed these submissions and supported the orders of…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

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

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

…vision of section 37(1) of the Act and also made submission regarding history of legislation. Ld. Counsel for the assessee placed reliance on the judgement of the Hon’ble Supreme Court in the case of Sri Venkata Satyanarayana Rice Mill Contractors Co vs. CIT 223 ITR 101 (SC) and the judgement of Hon’ble Delhi High Court rendered in the case of CIT vs Ranbaxy Laboratories Ltd. in ITA No.743/2008 (Del.) and the decision of Co-ordinate Bench of the Tribunal in assessee’s own case pertaining to AY 2009-10. 72. On the other hand, Ld. Special Counsel for the Revenue opposed these submissions and supported the orders of…

DCIT, Circle- 1(2)(1), International Taxation, New Delhi vs. Convergys Customer Management Group Inc., New Delhi

In the result, assessee’s appeal is partly allowed, whereas,

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2014-15

…ts into no further attribution of profits to Indian PE. 11.23. In this backdrop we are reminded of two case laws decided by Hon’ble Supreme Court which have dealt with attribution of the profits to the Indian PEs: (i) Anglo French Textile Company Ltd. vs CIT 23 ITR 101 (SC), in which 10% attribution has been held to be reasonable. (ii) Hukum Chand Mills Ltd. Vs. CIT 103 ITR 548 (SC), in which 15% attribution has been held to be reasonable. 11.24. These cases decided by the Apex Court though are old, but they still hold the field as they have not been tinkered with. In our considered view, the adoption of higher…

Itochu Corporation, Japan vs. ACIT (International Taxation), Circle-2(1)(1), New Delhi

The appeals of the assessee are partly allowed for statistical purposes

Bench: Shri R. K. Pandaa N D Ms. Suchitra Kamblei.T.A. No. 360/Del/2017 (A.Y. 2013-14) A N D I.T.A. No. 7615/Del/2018 (A.Y. 2015-16) (Through Video Conferencing) Itochu Corporation, Acit, 5–1, Kita-Aoyama, Vs. (International Taxation) 2–Chome, Minato-Ku Circle 2(1)(1), Tokyo 107-8077, Japan. New Delhi. Pan: Aabci5567L (Appellant) (Respondent)

…works (2012) 253 CTR 417 (Del); 16 DIT Vs. Morgan Stanley 292 ITR 416 (SC); 17 DIT Vs. Honda Motors Co. Ltd. 265 Taxman 542 (SC); 18 ESS Advertising (Mauritius) S.N.C. et Compagnie (ITA. Nos. 3760 & 4542/Del/2016); 19 Anglo French Textile Company Ltd. Vs. CIT 23 ITR 101 (SC); 20 Hukum Chand Mills Ltd. Vs. CIT 103 ITR 548 (SC); 21 CIT Vs. Ahmedbhai Umarbhai & Co. 18 ITR 472 (SC); 22 The Anglo–French Textile Co. Ltd. Vs. CIT 25 ITR 27 (SC); 23 Annamalais Timber Trust and Co. Vs. CIT 41 ITR 781 (Mad.) 24 CIT Vs. Bertrams Scotts Ltd. 31 Taxman 444 (Cal.); 25 Samsung Heavy Industries Co. Ltd. Vs. DIT (ITA. 01 of 2012)…

Itochu Corporation, Japan vs. DCIT (International Taxation), New Delhi

The appeals of the assessee are partly allowed for statistical purposes

Bench: Shri R. K. Pandaa N D Ms. Suchitra Kamblei.T.A. No. 360/Del/2017 (A.Y. 2013-14) A N D I.T.A. No. 7615/Del/2018 (A.Y. 2015-16) (Through Video Conferencing) Itochu Corporation, Acit, 5–1, Kita-Aoyama, Vs. (International Taxation) 2–Chome, Minato-Ku Circle 2(1)(1), Tokyo 107-8077, Japan. New Delhi. Pan: Aabci5567L (Appellant) (Respondent)

…works (2012) 253 CTR 417 (Del); 16 DIT Vs. Morgan Stanley 292 ITR 416 (SC); 17 DIT Vs. Honda Motors Co. Ltd. 265 Taxman 542 (SC); 18 ESS Advertising (Mauritius) S.N.C. et Compagnie (ITA. Nos. 3760 & 4542/Del/2016); 19 Anglo French Textile Company Ltd. Vs. CIT 23 ITR 101 (SC); 20 Hukum Chand Mills Ltd. Vs. CIT 103 ITR 548 (SC); 21 CIT Vs. Ahmedbhai Umarbhai & Co. 18 ITR 472 (SC); 22 The Anglo–French Textile Co. Ltd. Vs. CIT 25 ITR 27 (SC); 23 Annamalais Timber Trust and Co. Vs. CIT 41 ITR 781 (Mad.) 24 CIT Vs. Bertrams Scotts Ltd. 31 Taxman 444 (Cal.); 25 Samsung Heavy Industries Co. Ltd. Vs. DIT (ITA. 01 of 2012)…

M/S. Voith Paper Gmbh, New Delhi vs. DDIT, New Delhi

In the result, appeal of the assessee is dismissed

Bench: Shri O.P. Kant & Shri K.N. Charyassessment Year: 2010-11

…ts into no further attribution of profits to Indian PE. 11.23. In this backdrop we are reminded of two case laws decided by Hon’ble Supreme Court which have dealt with attribution of the profits to the Indian PEs: (i) Anglo French Textile Company Ltd. vs CIT 23 ITR 101 (SC), in which 10% attribution has been held to be reasonable. (ii) Hukum Chand Mills Ltd. vs. CIT 103 ITR 548 (SC), in which 15% attribution hasbeen held to be reasonable. 11.24. These cases decided by the Apex Court though are old. but they still hold the field as they have not been tinkered with. In our considered view. the adoption of higher…

Hitachi High- Technologies (Singapore) Pte Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble

…he DRP/assessing officer has no basis and is based on conjectures and surmises, as no FAR analysis has been conducted by them in this regard. 82. Referring to the decision of the Hon'ble Supreme Court in the case of Anglo French Textile Company Ltd. vs CIT 23 ITR 101 (SC) and the Hon'ble Calcutta High Court in the case of CIT Vs Bertrams Scotts Ltd.: 31 Taxman 444 (Cal. HC), the ld. counsel for the assessee stated that on a rough and ready basis, since the alleged PE is involved in lesser number of activities, only 10% of global profit percentage, as applied to India sales could at best be attributed as prof…

Amadeus Global Travel Distribution Sa, Spain vs. ADIT, New Delhi

The appeal of the assessee is allowed with above direction

Bench: Shri Kuldip Singh & Shri Prashant Maharishiamadeus Global Travel Vs. Adit, Distribution Sa Circle-1(1), (Now Known As Amadeus It International Taxation, Group Sa), New Delhi Salvador De Madariaga, E- 28027, Madrid, Spain Pan: Aafca9629P (Appellant) (Respondent)

…ts into no further attribution of profits to Indian PE. 11.23. In this backdrop we are reminded of two case laws decided by Hon‘ble Supreme Court which have dealt with attribution of the profits to the Indian PEs: (i) Anglo French Textile Company Ltd. vs CIT 23 ITR 101 (SC), in which 10% attribution has been held to be reasonable. (ii) Hukum Chand Mills Ltd. vs. CIT 103 ITR 548 (SC), in which 15% attribution has been held to be reasonable. 11.24. These cases decided by the Apex Court though are old, but they still hold the field as they have not been tinkered with. In our considered view, the adoption of higher…

Director of Incometax vs. Tokio Marine & Fire Insurance Co.Ltd

Bench: HON'BLE MR. JUSTICE MADAN B. LOKUR,HON'BLE MR. JUSTICE J.R. MIDHA

…ntants, etc. Its incurring expenditure (a factor taken into consideration by the Courts) did not ipso facto satisfy the requisite test. 5. The ratio of the judgments of the Supreme Court in Anglo French Textile Co Ltd v. Commissioner of Income Tax (1953) 23 ITR 101 and Commissioner of Income Tax, Punjab v. R.D. Aggarwal & Co. (1965) 56 ITR 20 is that the non-resident entity could be taxed only if there was business connection between the business carried on by a non-resident which yields profits or gains and some activity in the taxable territory which contributes directly or indirectly to the earning o…

Director of Income Tax-II vs. Western Union Financial Services Inc

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…son office of the applicant is only to expend money and all its income accrues outside India by the sale of the products. The position we have adopted is clearly supported by the decision of the Supreme Court in Anglo- French Textile Co. Ltd. v. CIT [1953] 23 ITR 101 affirming the decision of the Madras High Court in Anglo-French Textile Co. Ltd. v. CIT [1950] 18 ITR 888. The Supreme Court answered the question, "can any profit arise out of mere purchase of raw- material," thus 'In our judgment, the contention of the Learned Digitally Signed By:KAMLESH KUMAR Signing Date:18.12.2024 17:35:40 Signature Not V…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

…ritish India. In such cases, it has been held that the profits arose both from manufacture and the sales and that part of the profit which arises from sales outside British India would be exempt from tax: See Anglo French Textiles Co. Ltd. v. CIT, (1953) 23 ITR 101 (SC); CIT v. Ahmedbhai Umarbhai & Co. (supra). But these cases are not of any assistance to the assessee in the present case since the contention here is that the source of income is the export sales and the export sales are located outside India. 15. For these reasons we are unable to hold that the assessee‟s case falls under the second ex…

Commissioner of Income Tax vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

…ritish India. In such cases, it has been held that the profits arose both from manufacture and the sales and that part of the profit which arises from sales outside British India would be exempt from tax: See Anglo French Textiles Co. Ltd. v. CIT, (1953) 23 ITR 101 (SC); CIT v. Ahmedbhai Umarbhai & Co. (supra). But these cases are not of any assistance to the assessee in the present case since the contention here is that the source of income is the export sales and the export sales are located outside India. 15. For these reasons we are unable to hold that the assessee‟s case falls under the second ex…

CIT vs. Havells India Ltd

In the result the appeals filed by the revenue are disposed of with no

…ritish India. In such cases, it has been held that the profits arose both from manufacture and the sales and that part of the profit which arises from sales outside British India would be exempt from tax: See Anglo French Textiles Co. Ltd. v. CIT, (1953) 23 ITR 101 (SC); CIT v. Ahmedbhai Umarbhai & Co. (supra). But these cases are not of any assistance to the assessee in the present case since the contention here is that the source of income is the export sales and the export sales are located outside India. 15. For these reasons we are unable to hold that the assessee‟s case falls under the second ex…