CIT v. Ahmedbhai Umarbhai & Co.

DCIT, New Delhi vs. M/S Dharampal Satyapal Ltd., Delhi

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

…Dharampal Satyapal Ltd Vs, DCIT ITA No. 3738, 3739/Del/2016 (A) & ITA No. 3882 & 3883/Del/2016(R) Assessment Year: 2010-11 & 2011-12 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ―I-1‖: NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 3738, 3739/Del/2016 (Assessment Year: 2010-11, 2011-12) Dharampal Satyapal Ltd, Vs. DCIT, 1711, S. P. Mukherjee Marg, Central Circle-29, Delhi New Delhi PAN: AAACD0132H (Appellant) (Respondent) ITA No. 3882 & 3883/Del/2016 (Assessment Year: 2010-11 & 2011-12) DCIT, Vs. Dharampal Satyapal Ltd, Central Circle-29, 1711, S. P. Mukh…

Ge Nuovo Pignone Spa, Gurgaon vs. DCIT (International Taxation), Circle-1(3)(1), New Delhi

In the result, appeal filed by assessee stands partly allowed

Bench: Shri Nk Saini & Smt. Beena A Pillaiay: 2009-10 Ge Nuovo Pignone Spa Vs. Dcit, International Taxation C/O 6Th Floor, Building No.7 A Circle 1(3)(1) Standard Chartered Building New Delhi Dlf Cyber City, Phase Iii Gurgaon 122 002 Haryana

…ehensive activities leading to the income to the assessee are being carried out in India and the income accruing/arising on account of such activities is taxable in India as per the decision of Hon'ble Apex Court in the case of Ahmedbhai Umarbhai & Co. [1950] 18 ITR 472 (SC). ITA No. 6892/Del/2017 A.Y. 2009-10 GE Nuovo Pignone SPA, Gurgaon The contention of the assessee that it is not taxable even under the provisions of tax treaty is contrary to the facts of the case and position of law. Its claim that the liaison office merely acted as a communication interface/ channel and activities undertaken were in the n…

M/S. Zte Corporation, Gurgaon vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…work planning; (b) Negotiations in connection with the sale of equipment; and (c) The signing of the supply and installation contracts. 31. Tribunal further noticed the decision of Hon’ble Supreme Court in the case of CIT v. Ahmedbhai Umarbhai & Co. (1950) 18 ITR 472 (SC) (para 19), wherein the Hon’ble Supreme Court held that the income attributable to the manufacturing activity should be more than the income attributable to the activity of sale. 32. Tribunal further referred to the decision of Hon’ble Madras High Court in the case of CIT v. Anamallais Timber Trust Ltd. (1950) 18 ITR 333 (Mad.), 40 ITA 587…

DDIT, New Delhi vs. M/S Zte Corporation

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…work planning; (b) Negotiations in connection with the sale of equipment; and (c) The signing of the supply and installation contracts. 31. Tribunal further noticed the decision of Hon’ble Supreme Court in the case of CIT v. Ahmedbhai Umarbhai & Co. (1950) 18 ITR 472 (SC) (para 19), wherein the Hon’ble Supreme Court held that the income attributable to the manufacturing activity should be more than the income attributable to the activity of sale. 32. Tribunal further referred to the decision of Hon’ble Madras High Court in the case of CIT v. Anamallais Timber Trust Ltd. (1950) 18 ITR 333 (Mad.), 40 ITA 587…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…work planning; (b) Negotiations in connection with the sale of equipment; and (c) The signing of the supply and installation contracts. 31. Tribunal further noticed the decision of Hon’ble Supreme Court in the case of CIT v. Ahmedbhai Umarbhai & Co. (1950) 18 ITR 472 (SC) (para 19), wherein the Hon’ble Supreme Court held that the income attributable to the manufacturing activity should be more than the income attributable to the activity of sale. 32. Tribunal further referred to the decision of Hon’ble Madras High Court in the case of CIT v. Anamallais Timber Trust Ltd. (1950) 18 ITR 333 (Mad.), 40 ITA 587…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

…work planning; (b) Negotiations in connection with the sale of equipment; and (c) The signing of the supply and installation contracts. 31. Tribunal further noticed the decision of Hon’ble Supreme Court in the case of CIT v. Ahmedbhai Umarbhai & Co. (1950) 18 ITR 472 (SC) (para 19), wherein the Hon’ble Supreme Court held that the income attributable to the manufacturing activity should be more than the income attributable to the activity of sale. 32. Tribunal further referred to the decision of Hon’ble Madras High Court in the case of CIT v. Anamallais Timber Trust Ltd. (1950) 18 ITR 333 (Mad.), 40 ITA 587…

Ranbaxy Laboratories Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, we direct the AO to reduce the book profit u/s 115JB of the Act by the amount of reversal of the provision of Rs

Bench: Sh. I. C.Sudhir Judicialmember & Sh. Prashant Maharishia.Y.: - 2008-09 Ranbaxy Laboratories Ltd. Vs Acit 12Th Floor, Devika Tower, Range -15 6, Nehru Place New Delhi New Delhi Pan No. Aaacr0127N (Appellant) (Respondent)

…have been provided, so that such an abnormal profit @ 58.66% could be checked. 9.6 In support of the above submissions, Mr. Srivastava has placed on strong reliance on the decision of Hon'ble Supreme Court in the case of CIT v. Ahmedbhai Umarbhai & Co. [1950] 18 ITR 472 for the legal proposition that, quote "The profits received relate firstly to his business as a manufacturer, secondly to his trading operations, and thirdly to his business of import and export. Profit or loss has to be apportioned between these businesses in a business like manner and according to well established principles or accountancy." Unq…

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

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

…icant, - and on which the whole argument is founded - that it is the act of sale alone from which the profits accrue or arise can no longer be sustained and has to be repelled in view of the decision of this Court in CIT v. Ahmedbhai Umarbhai & Co. [1950] 18 ITR 472. … It was held by this court that the profits of that part of the business, viz., the manufacture of the oil in the Mill in Raichur, accrued or arose in Raichur even though the manufactured oil was sold in Bombay and the price was received there, and, accordingly that part of the profits derived from sales in Bombay which was attributable to…

Director of Income Tax Delhi vs. M/S Lufthansa Cargo India P

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

…legal proposition, we are supported by the decision of the Supreme court in the case of Anglo French Textile Company Ltd. v. CIT (1954) 25 IRT 27, where relying on an earlier judgment of the larger bench in the case of CIT v. Ahmed Bhai Umar Bhai and Co. (18 ITR 472)… ********* ******* ***** 54. The Ld. Counsel for the assessee fairly states that he has no objection to the apportionment on the basis of the above-quoted decision. He, however, submits that virtually 100% of the Revenues were earned outside India and the aggregate direct expenditure incurred outside India is about 71%, and ano…

Director of Income Tax Delhi vs. M/S Lufthansa Cargo India P

…legal proposition, we are supported by the decision of the Supreme court in the case of Anglo French Textile Company Ltd. v. CIT (1954) 25 IRT 27, where relying on an earlier judgment of the larger bench in the case of CIT v. Ahmed Bhai Umar Bhai and Co. (18 ITR 472)… ********* ******* ***** 54. The Ld. Counsel for the assessee fairly states that he has no objection to the apportionment on the basis of the above-quoted decision. He, however, submits that virtually 100% of the Revenues were earned outside India and the aggregate direct expenditure incurred outside India is about 71%, and ano…

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

…ITR 123. The location or situs of a source of income is another aspect. The third aspect is the accrual of the income. Though it is true, as held by Kania, C.J., speaking for a Constitution Bench of the Supreme Court in CIT v. Ahmedbhai Umarbhai, (1950) 18 ITR 472 (SC) at page 479, that the place where the source of income is located may not necessarily be the place where the income also accrues, that question is not material in the present case because herein we are concerned only with the question as to the location of the source. The real question is whether the export sales proceeds received from…

Commissioner of Income Tax vs. Havells India Ltd

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

…ITR 123. The location or situs of a source of income is another aspect. The third aspect is the accrual of the income. Though it is true, as held by Kania, C.J., speaking for a Constitution Bench of the Supreme Court in CIT v. Ahmedbhai Umarbhai, (1950) 18 ITR 472 (SC) at page 479, that the place where the source of income is located may not necessarily be the place where the income also accrues, that question is not material in the present case because herein we are concerned only with the question as to the location of the source. The real question is whether the export sales proceeds received from…

CIT vs. Havells India Ltd

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

…ITR 123. The location or situs of a source of income is another aspect. The third aspect is the accrual of the income. Though it is true, as held by Kania, C.J., speaking for a Constitution Bench of the Supreme Court in CIT v. Ahmedbhai Umarbhai, (1950) 18 ITR 472 (SC) at page 479, that the place where the source of income is located may not necessarily be the place where the income also accrues, that question is not material in the present case because herein we are concerned only with the question as to the location of the source. The real question is whether the export sales proceeds received from…