Carborandum Co. v. CIT

108 ITR 335Supreme Court of India1977#1314 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2007 to 2025.

Also referred to as

Carborandum Co. v. CIT · 108 ITR 335 · Section 9(1)(i) · Section 5(2) · Section 163 · Section 194C · deputed employees · expatriate taxability · secondment agreement · non-resident income accrual · tax liability foreign company · lien employment foreign entity

Sections most often in play

Section 234B Section 5(2)Section 9(1)(i)Section 143(3)Section 144C(13)Section 144C(5)Section 194C Section 234C

Read the full judgment

Issues it is cited on

bright line test amp expenditure section 42 comparable uncontrolled price method section 92(1)cost plus method functional analysis section 80jja section 80jjaa section 163 section 92c(3)section 9(1)(i)

Judgments citing Carborandum Co. v. CIT

ADIT (It) (2), Mumbai vs. Daimler Ag, Mumbai

ITA 7648/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Sept 2016AY 2008-09

Bench: Shri R.C. Sharma, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 7648 & 7649/Mum/2013 ("नधा"रण वष" / Assessment Year: 2008-09 & 2009-10) Asst. Dit(It) -1(2), M/S. Daimler Ag Room No.119, 1St Floor, Scindia C/O Srbc & Associates 14Th Floor, The Ruby 29, बनाम/ House, N.M. Road, Ballard Estate, Mumbai-400 038. Senapati Bapat Marg Vs. Dadar (West) Mumbai-400 028. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabcd 2354C (अपीलाथ" /Appellant) (""यथ" / Respondent) :

For Appellant: Shri Hemen Chandariya

Section 143(3)Section 195Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, AM AND SHRI SANDEEP GOSAIN, JM आयकर अपील सं./ I.T.A. No. 7648 & 7649/Mum/2013 ("नधा"रण वष" / Assessment Year: 2008-09 & 2009-10) Asst. DIT(IT) -1(2), M/s. Daimler AG Room No.119, 1st Floor, Scindia C/o SRBC & Associates 14th Floor, The Ruby 29, बनाम/ House, N.M. Road, Ballard Estate, Mumbai-400 038. Senapati Bapat Marg Vs. Dadar (West) Mumbai-400 028. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AABCD 2354C (अपीलाथ" /Appellant) (""यथ" / Respondent) : : Shri Harshad Vengurlekar अपीलाथ" क" ओर से / Appellant by : Shri Hemen Chandariya ""यथ"…

M/S Balmer Lawries & Co. Ltd., Kolkata vs. Income Tax Officer(It) WD-1(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2079/KOL/2014[2012-2013]Status: DisposedITAT Kolkata27 Apr 2016AY 2012-2013

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2012-13 M/S Balmer Lawrie & Co. V/S. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [Pan No. Aabcb 0984 E] Bhawan (Poorva), 2Nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, Sr-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, Jcit-Dr ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date Of Hearing 27-04-2016 घोषणा क" तार"ख/Date Of Pronouncement

Section 195Section 201(1)Section 5(2)(b)

…perations or rendered some services in India, in respect of which the income is sought to be assessed to tax in India on deemed accrual basis. Reliance in this connection is placed on the decisions of the Hon’ble Supreme Court in Carborandum Co. v. CIT (1977) 108 ITR 335 (SC), CIT v. Toshoku Ltd. (1980) 125 ITR 525 (SC) and in Ishikawajima-harima Heavy Industries Ltd. v. Director of Income Tax (2007) 288 ITR 408 (SC). ITA No.ITA No.2079/Kol/2014 A.Y. 2012-13 M/s Blmer Lawrie & Co. Ltd. v. ITO(IT) Wd-1(1), Kol. Page 20 7. The aforesaid view was followed and reiterated by the Hon’ble Karnataka High Court in Jindal…

ADIT, Dehradun vs. M/S. Hallin Marine Uk Ltd., Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5290/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2009-10 M/S. Hallin Marine Uk Ltd., Vs. Adit, Intl. Taxation, Dehradun C/O Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (Pan: Aabch9433L) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘C’: NEW DELHI BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Hallin Marine UK Ltd., Vs. ADIT, Intl. Taxation, Dehradun C/o Nangia & Company, Suite 4A, Plaza M-6, Jasola, New Delhi (PAN: AABCH9433L) (Appellant) (Respondent) And Assessment Year: 2009-10 ADIT, International Taxation, Vs. M/s. Hallin Marine UK Ltd., 13A-Subhash Road, Aayakar C/o Nangia & Company, Suite Bhawan, Dehradun 4A, Plaza M-6, Jasola, New Delhi (PAN: AABCH9433L) (Appellant) (Respondent) And C.O. 463/Del/2012 [In ITA No. 5290/Del/2012]…

Hallin Marine Uk Ltd., New Delhi vs. ADIT, Dehradun

In the result, both the appeal and the cross objection filed by the assessee are dismissed and the appeal filed by the Revenue is allowed partly for statistical purposes

ITA 5217/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Jan 2016AY 2009-10

Section 143(2)Section 143(3)Section 44BSection 9(1)(vii)Section 92

M/S Cee Aar Exports, Bangalore vs. ITO, Bangalore

In the result, we are of the opinion that the assessee was not obliged to deduct tax at source on the payments effected to its agents abroad

ITA 918/BANG/2014[2008-09]Status: DisposedITAT Bangalore11 Dec 2015AY 2008-09

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Appellant: Shri P.Dinesh, AdvocateFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)

Section 195Section 201Section 201(1)Section 9

…try. There is absolutely no territorial nexus with India as far as the non- residents are concerned. The non-resident’s source of income outside India and accrues and arises outside India. The Hon’ble Supreme Court in the case of Carborandum Co. v. CIT (1977) 108 ITR 335, has held that “the carrying on of activities or operations in India is essential to make the non-resident have business connection in India in order that he may be liable to tax in respect of the income attributable to that business connection. The CBDT in Circular No. 17(XXXVII) of 1953 dated 17th July, 1953 has stated as follows:- “Foreign age…

Zanav Home Collection vs. JCIT

In the result, the appeal by the Assessee is allowed

ITA 1091/BANG/2013[2009-10]Status: DisposedITAT Bangalore13 Feb 2015AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2009-10

For Appellant: Shri Cherian K. Babay, C.AFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)

Section 36(1)(vii)

…absolutely no territorial nexus with India as far as the non-residents are concerned. The non-resident’s source of income outside India and accrues and arises outside India. The Hon’ble Supreme Court in the case of Page 17 of 18 Carborandum Co. v. CIT (1977) 108 ITR 335, has held that “the carrying on of activities or operations in India is essential to make the non- resident have business connection in India in order that he may be liable to tax in respect of the income attributable to that business connection. The CBDT in Circular No. 17(XXXVII) of 1953 dated 17th July, 1953 has stated as follows:- “Foreign a…

Ishikawajma-Harima Heavy Industries Ltd vs. Director of Income Tax, Mumbai

The appeal is allowed in part and to

C.A. No.-000009-000009 - 2007Supreme Court04 Jan 2007

For Respondent: Director of Income Tax, Mumbai

Section 241

…he income arising in the taxable territories in the particular year from the income arising without the taxable territories in that year for the purposes of Section 4-A(c)(b) of the Act." In Carborandum Co. v. Commissioner of Income-Tax, Madras [(1977) 108 ITR 335 : (1977) 2 SCC 862], this Court referring to its earlier decision in Commissioner of Income Tax, Punjab v. R..D. Aggarwal and Co.& Another [(1965) 56 ITR 20], opined : "15. On a plain reading of sub-sections (1) and (3) of Section 42 it would appear that income accruing or arising from any business connection in the taxable territories \…