Carborandum Co. v. CIT

Deputy Commissioner of Income Tax (It)-3(2)(1), Mumbai vs. M/S Marriott International Design & Construction Services Inc., Mumbai

In the result the appeal filed by the Assessing Officer is thus dismissed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bledcit (It) – 3(2)(1) V. M/S. Marriott International Design Room No. 1632, 16Th Floor & Construction Services Inc., Air India Building, Nariman Point C/O. Marriot Hotels India Pvt. Ltd., Mumbai – 400 021 303A, 304, Fulcrum B-Wing, Hiranandani Business Park Mumbai, Sahar Road Andheri (E) - 400099 Pan: Aagcm5401Q (Appellant) (Respondent) C.O. No. 01/Mum/2023 [Arising Out Of Ita No. 2977/Mum/2022 (A.Y: 2018-19)] M/S. Marriott International Design V. Dcit (It) – 3(2)(1) & Construction Services Inc., Room No. 1632, 16Th Floor C/O. Marriot Hotels India Pvt. Ltd., Air India Building 303A, 304, Fulcrum Nariman Point B-Wing, Hiranandani Business Park Mumbai – 400 021 Mumbai, Sahar Road Andheri (E) - 400099 Pan: Aagcm5401Q (Appellant) (Respondent) Assessee Represented By : Shri Paras Savla Department Represented By : Shri Kunal Haver

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI AMIT SHUKLA, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER DCIT (IT) – 3(2)(1) v. M/s. Marriott International Design Room No. 1632, 16th Floor & Construction Services Inc., Air India Building, Nariman Point C/o. Marriot Hotels India Pvt. Ltd., Mumbai – 400 021 303A, 304, Fulcrum B-Wing, Hiranandani Business Park Mumbai, Sahar Road Andheri (E) - 400099 PAN: AAGCM5401Q (Appellant) (Respondent) C.O. No. 01/MUM/2023 [ARISING OUT OF ITA NO. 2977/MUM/2022 (A.Y: 2018-19)] M/s. Marriott International Design v. DCIT (I…

Income Tax Officer (It) 3 (2) (2), Mumbai vs. M/S. Macrotech Developers Ltd (As Sucessor of Lodha Developers Ltd Which Was Bellissimo Crown Buildmart Pvt. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

…rectly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the business income earned by the non- resident, which h…

Income Tax Officer (It) 3(2) (2), Mumbai vs. M/S. Macrotech Developers Ltd (As Sucessor of Lodha Developers Ltd Which Was Bellissimo Crown Buildmart Pvt. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

…rectly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the business income earned by the non- resident, which h…

Income Tax Officer (It) 3(2) (2), Mumbai vs. M/S. Macrotech Developers Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…rectly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must…

Income Tax Officer (It) 3(2) (2), Mumbai vs. M/S. Macrotech Develope\Rs Ltd (As Sucessor of Lodha Developers Ltd Which Was Sucessor of Bellissimo Crown Builders P. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…rectly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must…

Income Tax Officer (It), Mumbai vs. M/S. Macrotech Developers Ltd (As Sucessor of Lodha Developers Ltd Which Was Bellissimo Crown Buildmart Pvt. Ltd, Mumbai

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…rectly or indirectly to the earning of those profits or gains. It predicates an element of continuity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must…

Mfe Formwork Technology Sdn Bhd, Mumbai vs. The CIT (Intl Tax), Mumbai

In the result, the appeal is allowed

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI SANDEEP SINGH KARHAIL, JM ITA No. 1579/MUM/2022 (Assessment Year 2018-19) MFE Formwork Technology SDN CIT(Intl Tax) BHD Room No. 1601, 16 th Floor, Unit No. 504, Tower 1 Star Hub, Airport Road, Behind ITC Grand, Air India Bldg. Nariman Point, Vs. Maratha Hotel , Andheri (East) Mumbai-400 021 Mumbai-400 099 (Appellant) (Respondent) PAN No. AAGCM4280M Assessee by : Shri.P.J.Pardiwala/Harsh Kothari/Bhupa Rapelli Revenue by : Ms. Surabhi Sharma-CIT DR Date of hearing: 07.11.2022 Date of pronouncement : 24.01.2023 O R…

Mfe Formwork Technology Sdn Bhd, Mumbai vs. The CIT (Intl Tax), Mumbai

In the result, the appeal is allowed

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI SANDEEP SINGH KARHAIL, JM ITA No. 1579/MUM/2022 (Assessment Year 2018-19) MFE Formwork Technology SDN CIT(Intl Tax) BHD Room No. 1601, 16 th Floor, Unit No. 504, Tower 1 Star Hub, Airport Road, Behind ITC Grand, Air India Bldg. Nariman Point, Vs. Maratha Hotel , Andheri (East) Mumbai-400 021 Mumbai-400 099 (Appellant) (Respondent) PAN No. AAGCM4280M Assessee by : Shri.P.J.Pardiwala/Harsh Kothari/Bhupa Rapelli Revenue by : Ms. Surabhi Sharma-CIT DR Date of hearing: 07.11.2022 Date of pronouncement : 24.01.2023 O R…

Dy CIT (Int.Tax)-2(1)(1), Mumbai vs. M/S Credit Suisse (Singapore) Ltd., Mumbai

In the result, both the appeals filed by the revenue are dismissed

Bench: Shri Amit Shukla, Jm & S Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No.762 & 761/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2016-17 & 2017-18) Dy Cit(Int.Tax)-2(1)(1) M/S. Credit Suisse (Singapore) Ltd, Room No. 1713, 17Th बिधम/ 1. Raffles Link, 03/04-01, Floor, Air India Building, Vs. South Lobby, Singapore, Nariman Point, Mumbai- Foreign, Singapore 400 021. स्थायीलेखासं./जीआइआरसं./ Pan No. Aaccc7328N (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Ms. Bharti Singh-Sr, Dr प्रत्यथीकीओरसे/Respondent By : Shri. Paras Savla/Pratik Poddar/Harsh Shah, Ld. Ar सुनवाईकीतारीख/ : 28.07.2022 Date Of Hearing घोषणाकीतारीख / : 17.10.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeals Have Been Filed By The Revenue Against The Separate Impugned Order Of Even Date 25.02.2022, Passed By Ld. Cit (A) Mumbai For The Quantum Of Assessment Passed U/S 143(3) R.W.S. 144C For Ay 2016-17 & 2017-18. 2

…taxable territories, it follows that the income accruing or arising abroad through or from any business connection in India cannot be deemed to accrue or arise in India (See CIT v. R.D. Aggarwal and Co. [1965] 56 ITR 20 (SC) and Carborundum Co. v. CIT [1977] 108 ITR 335 (SC) which are decided on the basis of s. 42 of the Indian I.T. Act, 1922, which corresponds to s. 9(1)(i ) of the Act). In the instant case, the non-resident assessee did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in India of the sale proceeds of tobacco remitted or ca…

Dy CIT-(Int-Taxation)-2(1)(1), Mumbai vs. M/S Credit Suisse (Singapore) Ltd, Mumbai

In the result, both the appeals filed by the revenue are dismissed

Bench: Shri Amit Shukla, Jm & S Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No.762 & 761/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2016-17 & 2017-18) Dy Cit(Int.Tax)-2(1)(1) M/S. Credit Suisse (Singapore) Ltd, Room No. 1713, 17Th बिधम/ 1. Raffles Link, 03/04-01, Floor, Air India Building, Vs. South Lobby, Singapore, Nariman Point, Mumbai- Foreign, Singapore 400 021. स्थायीलेखासं./जीआइआरसं./ Pan No. Aaccc7328N (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Ms. Bharti Singh-Sr, Dr प्रत्यथीकीओरसे/Respondent By : Shri. Paras Savla/Pratik Poddar/Harsh Shah, Ld. Ar सुनवाईकीतारीख/ : 28.07.2022 Date Of Hearing घोषणाकीतारीख / : 17.10.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeals Have Been Filed By The Revenue Against The Separate Impugned Order Of Even Date 25.02.2022, Passed By Ld. Cit (A) Mumbai For The Quantum Of Assessment Passed U/S 143(3) R.W.S. 144C For Ay 2016-17 & 2017-18. 2

…taxable territories, it follows that the income accruing or arising abroad through or from any business connection in India cannot be deemed to accrue or arise in India (See CIT v. R.D. Aggarwal and Co. [1965] 56 ITR 20 (SC) and Carborundum Co. v. CIT [1977] 108 ITR 335 (SC) which are decided on the basis of s. 42 of the Indian I.T. Act, 1922, which corresponds to s. 9(1)(i ) of the Act). In the instant case, the non-resident assessee did not carry on any business operations in the taxable territories. They acted as selling agents outside India. The receipt in India of the sale proceeds of tobacco remitted or ca…

Mfe Formwork Technology Sdn Bhd, Mumbai vs. The CIT (Intl Tax), Mumbai

In the result, the appeal is allowed

…not be open to the assessee to deny the tax liability that it has already accepted under the said computation. We may, in this regard, refer to a materially similar situation dealt with by the Hon’ble Supreme Court in the case of Carborundum Co Vs CIT [(1977) 108 ITR 335 (SC)], wherein, even while Their Lordships held that the assessee had no tax withholding obligation in respect of technical know-how paid by the assessee, and, as such, revision order under section 263, holding the assessee liable to tax withholding treating 75% of such technical know-how is taxable in India, is unsustainable in law, Their Lordsh…

DCIT (It) 3(2) (1), Mumbai vs. M/S. Marriott International Design & Construction Services Inc., Mumbai

In the result the appeal filed by the Assessing Officer is thus dismissed

…octor. On the other hand, if the same doctor teaches or trains student on the aspect of diagnosis or techniques of surgery, that will amount to making available the technical knowledge and experience of the doctor. In the case of Carborandum Co. v. CIT [1977] 108 ITR 335 (SC), a foreign company entered into an agreement with an Indian company for rendering technical and know how services to the Indian company. In lieu of those services, the foreign company was to receive from the Indian company an annual fee equal to three per cent of the net sale proceeds of the products manufactured by the Indian company every…