CIT v. Bharti Cellular Ltd.

319 ITR 139High Court2009#585 most cited

What is CIT v. Bharti Cellular Ltd. authority for?

Technical services under Section 9(1)(vii) read with Explanation 2 require human intervention at the time of service delivery. Consequently, payments for telecom services like roaming, mobile data, connectivity, or interconnect/port access do not constitute 'fees for technical services' and are not liable for TDS under Section 194J.

167

judgments rely on this decision, according to BharatTax’s citation analysis of 367,359 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Bharti Cellular Ltd. · Section 9(1)(vii) · Section 194J · fees for technical services · FTS · human intervention · human interface · roaming charges · interconnect access · mobile data · connectivity · TDS liability

Also reported as

175 Taxmann 573

Sections most often in play

Section 9(1)(vii)Section 143(3)Section 194JSection 143(1)Section 195Section 147Section 148Section 201(1)
Read the full judgment

Issues it is cited on

section 35abbsection 35dduse of equipmentsection 9(l)section 194jsection 44bbsection 195(2)section 194hsection 44bsection 40a(ia)section 9(1)(vi)section 9(1)(vii)

Judgments citing CIT v. Bharti Cellular Ltd.

ACIT, Circle-4(2), New Delhi vs. Bharti Airtel Ltd., New Delhi

The appeal of the Revenue is partly allowed and appeal of the assessee is allowed

ITA 6078/DEL/2019[2007-08]Status: DisposedITAT Delhi09 Jun 2025AY 2007-08

Bench: Shri Vikas Awasthy& Shri Amitabh Shuklaआअसं.5692 और5693/दिल्ली/2019 (नि.व. 2007-08 और2008-09)

For Appellant: S/Shri Rohit Jain, Deepesh Jain, Advocates andFor Respondent: Shri Javed Akhtar, CIT(DR)
Section 195Section 40

…obile service provider company for utilization of roaming, mobile data and connectivity could not be termed as technical services, therefore, no TDS is deductable on such roaming charges. The Hon'ble Delhi Court in assessee's own case CIT vs. Bharti Cellular, 319 ITR 139 has held that payment for use of services of other telecom operators via interconnect/port access would not fall within the preview of payments as provided u/s.194J of the Act, therefore, not liable for deduction of tax at source. To further buttress his arguments, the Id. Counsel for the assessee placed reliance on the decision of Coordinate Ben…

Bharti Airtel Limited, New Delhi vs. ACIT Circle 4(2), New Delhi

The appeal of the Revenue is partly allowed and appeal of the assessee is allowed

ITA 5963/DEL/2019[2008-09]Status: DisposedITAT Delhi09 Jun 2025AY 2008-09

Bench: Shri Vikas Awasthy& Shri Amitabh Shuklaआअसं.5692 और5693/िद"ी /2019(िन.व. 2007-08 और2008-09)

For Appellant: S/Shri Rohit Jain, Deepesh Jain, Advocates and Shri Shivam Gupta, Chartered AccoFor Respondent: Shri Javed Akhtar, CIT(DR)
Section 195Section 40

…obile service provider company for utilization of roaming, mobile data and connectivity could not be termed as technical services, therefore, no TDS is deductable on such roaming charges. The Hon’ble Delhi Court in assessee’s own case CIT vs. Bharti Cellular, 319 ITR 139 has held that payment for use of services of other telecom operators via interconnect/port access would not fall within the preview of payments as provided u/s. 194J of the Act, therefore, not liable for deduction of tax at source. To further buttress his arguments, the ld. Counsel for the assessee placed reliance on the decision of Coordinate Be…

Bharti Airtel Ltd, New Delhi vs. ACIT Circle 4(2), New Delhi

The appeal of the Revenue is partly allowed and appeal of the assessee is allowed

ITA 5962/DEL/2019[2007-08]Status: DisposedITAT Delhi09 Jun 2025AY 2007-08

Bench: Shri Vikas Awasthy& Shri Amitabh Shuklaआअसं.5692 और5693/दिल्ली/2019 (नि.व. 2007-08 और2008-09)

For Appellant: S/Shri Rohit Jain, Deepesh Jain, Advocates andFor Respondent: Shri Javed Akhtar, CIT(DR)
Section 195Section 40

…obile service provider company for utilization of roaming, mobile data and connectivity could not be termed as technical services, therefore, no TDS is deductable on such roaming charges. The Hon'ble Delhi Court in assessee's own case CIT vs. Bharti Cellular, 319 ITR 139 has held that payment for use of services of other telecom operators via interconnect/port access would not fall within the preview of payments as provided u/s.194J of the Act, therefore, not liable for deduction of tax at source. To further buttress his arguments, the Id. Counsel for the assessee placed reliance on the decision of Coordinate Ben…

DCIT(TDS)OSD-1(2), Mumbai, Cumballa Hill vs. House of Anita Dongre Pvt Ltd, Bandra West

In the result, the appeal filed by the revenue is dismissed

ITA 5211/MUM/2024[2017-18]Status: DisposedITAT Mumbai11 Apr 2025AY 2017-18

Bench: BEFOR SHRI ANIKESH BANERJEE (Judicial Member)

Section 201(1)Section 250Section 29

…he presence of certain restrictions on franchisees/LFS—such as MRP control, brand décor, marketing standards, and submission of accounts—does not alter the character of the transaction. Respectfully reliance is placed on Bharti Cellular Ltd. v. Assistant CIT [462 ITR 427 / 160 taxmann.com 12 (SC)], wherein the Apex Court, in the context of distribution of SIM cards and recharge vouchers, held that such restrictions do not change the nature of transaction from sale to agency. (vi) The Ld. DR respectfully relied on the decision in Singapore Airlines Ltd. v. CIT [144 taxmann.com 221 (SC)]which is distinguishable. I…

DCIT(TDS)OSD-1(2), Mumbai, Cumballa Hill vs. House of Anita Dongre Pvt Ltd, Bandra West

In the result, the appeal filed by the revenue is dismissed

ITA 5210/MUM/2024[2016-17]Status: DisposedITAT Mumbai11 Apr 2025AY 2016-17

Bench: BEFOR SHRI ANIKESH BANERJEE (Judicial Member)

Section 201(1)Section 250Section 29

…he presence of certain restrictions on franchisees/LFS—such as MRP control, brand décor, marketing standards, and submission of accounts—does not alter the character of the transaction. Respectfully reliance is placed on Bharti Cellular Ltd. v. Assistant CIT [462 ITR 427 / 160 taxmann.com 12 (SC)], wherein the Apex Court, in the context of distribution of SIM cards and recharge vouchers, held that such restrictions do not change the nature of transaction from sale to agency. (vi) The Ld. DR respectfully relied on the decision in Singapore Airlines Ltd. v. CIT [144 taxmann.com 221 (SC)]which is distinguishable. I…

DCIT(TDS)-1(2), Mumbai vs. House of Anita Dongre Pvt Ltd, Bandra West

In the result, the appeal filed by the revenue is dismissed

ITA 5165/MUM/2024[2018-19]Status: DisposedITAT Mumbai11 Apr 2025AY 2018-19

Bench: BEFOR SHRI ANIKESH BANERJEE (Judicial Member)

Section 201(1)Section 250Section 29

…he presence of certain restrictions on franchisees/LFS—such as MRP control, brand décor, marketing standards, and submission of accounts—does not alter the character of the transaction. Respectfully reliance is placed on Bharti Cellular Ltd. v. Assistant CIT [462 ITR 427 / 160 taxmann.com 12 (SC)], wherein the Apex Court, in the context of distribution of SIM cards and recharge vouchers, held that such restrictions do not change the nature of transaction from sale to agency. (vi) The Ld. DR respectfully relied on the decision in Singapore Airlines Ltd. v. CIT [144 taxmann.com 221 (SC)]which is distinguishable. I…

Novanet India Private Limited, Mumbai vs. ITO Ward Ward 15(2)(1), Mumbai

The appeal of the assessee is allowed

ITA 4505/MUM/2024[2018-19]Status: DisposedITAT Mumbai27 Feb 2025AY 2018-19

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Vishal Shah a/w Jainam
Section 112Section 147Section 148Section 148ASection 201Section 250Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JM & MS PADMAVATHY S, AM I.T.A. No. 4505/Mum/2024 (Assessment Year: 2018-19) Novanet India Private Ltd., ITO. Ward -15(2)(1), Office No. 302, 3rd Floor, Room No. 204, Aayakar Bhavan, EL Tara Building, Building No.10, M.K. Road, Mumbai-400020. Vs. Hiranandani Gardens, Powai, Mumbai-400076. PAN: AAACN9139L Appellant) : Respondent) Appellant /Assessee by : Shri Vishal Shah a/w Jainam Sonaiya, AR : Shri Krishna Kumar, Sr. DR Revenue / Respondent by Date of Hearing : 13.02.2025 Date of Pronouncement : 27.02.2025 O R D E R Per Padmavathy S…

Janet Christine Depenning, Chennai vs. ITO, International Taxation Ward-1(1), Chennai

In the result, the appeal of the Revenue is allowed for statistical purpose

ITA 1319/CHNY/2024[2014-15]Status: DisposedITAT Chennai31 Dec 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.1319, 1320, 1321, 1322 & 1323/Chny/2024 िनधा<रण वष< /Assessment Years:2014-15, 2015-16, 2016-17, 2017-18 & 2020-21 Janet Christine Depenning, The Income Tax Officer, 120, Velachery Main Road, Vs. International Taxation Ward-1(1), Guindy,Chennai – 600 032. Chennai. [Pan: Aebpd 2408L]

For Appellant: Shri Sanjeev Aditya, C.A LMFor Respondent: Smt. G. Saratha, Addl. CIT
Section 195Section 201(1)Section 9(1)(vii)Section 9(1)(viii)

…o be technical service. However, the category of consultancy services also includes an advisory service, whether or not expertise in technology is required to perform it.&quot; 35. In this context, a reference to the decision in CIT v. Bharti Cellular Ltd. [2009] 319 ITR 139/[2008] 175 Taxman 573 (Delhi), would be apposite. In the said case, while dealing with the concept of &quot;consultancy services&quot;, the High Court of Delhi has observed thus: &#x27;Similarly, the word &quot;consultancy&quot; has been defined in the said Dictionary as &quot;the work or position of a consultant; a department of consultants.&quot; &quot;Consultant&quot; itself has been de…

Route Mobile Limited, Malad West, Mumbai vs. ITO Circle 13(3)(2), Mumbai, Aayakar Bhawan

ITA 5384/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Dec 2024AY 2017-18

Bench: Justice (Retd.) C V Bhadang, Hon'Ble & Shri B R Baskaran, Hon'Ble

For Appellant: Shri Mani JainFor Respondent: Smt Sanyogita Nagpal
Section 133BSection 194CSection 194JSection 201Section 201(1)

…ent involved while using the core services for sending of bulk SMS. 8. In the case of SMS Country Networks Pvt. Ltd., Hyderabad, the Hyderabad Bench of this Tribunal after taking note of the decision of the Delhi Tribunal in CIT vs Bharati Cellular Ltd (2008) 319 ITR 139 has found that the transmission through systems are outside the purview of “technical services…

Route Mobile Limited, Malad West, Mumbai vs. Income Tax Office Circle 13(3)(2), Mumbai, Aayakar Bhawan

In the result, both the appeals are allowed

ITA 5383/MUM/2024[2020-21]Status: DisposedITAT Mumbai03 Dec 2024AY 2020-21

Bench: Justice (Retd.) C V Bhadang, Hon’Ble & Shri B R Baskaran, Hon’Ble

For Appellant: Shri Mani JainFor Respondent: Smt Sanyogita Nagpal
Section 133BSection 194CSection 194JSection 201Section 201(1)

…ent involved while using the core services for sending of bulk SMS. 8. In the case of SMS Country Networks Pvt. Ltd., Hyderabad, the Hyderabad Bench of this Tribunal after taking note of the decision of the Delhi Tribunal in CIT vs Bharati Cellular Ltd (2008) 319 ITR 139 has found that the transmission through systems are outside the purview of “technical services” where there is no human intervention involved. A co-ordinate Bench of this Tribunal in similar circumstances has held that what is relevant is whether any human intervention is required, which is the main/core activity between the parties. In fact, a p…

M/S. Idea Cellular Limited, Indore vs. The DCIT (TDS), Indore

Appeals are allowed

ITA 111/IND/2015[2013-14 (Quarter 4)]Status: DisposedITAT Indore01 Aug 2024

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 194Section 194HSection 194JSection 201(1)

…ered by decisions. Therefore, we only need to refer those decisions. So far as the first issue whether the payment of roaming charges falls within the meaning of “FTS”, Ld. AR submitted that the Hon’ble Delhi High Court decided in CIT Vs. Bharti Cellular Ltd. 319 ITR 139 (Del) that roaming service not involving human interference is not a technical service as contemplated under Explanation 2 to section 9(1)(vii) and therefore not liable for TDS u/s 194J. Against decision of Hon’ble Delhi High Court, the department filed appeal to Hon’ble Supreme Court whereupon the Hon’ble Supreme Court remanded matter to departm…

M/S. Idea Cellular Limited, Indore vs. The DCIT (TDS), Indore

Appeals are allowed

ITA 110/IND/2015[2013-14 (for first three quarter)]Status: DisposedITAT Indore01 Aug 2024

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 194Section 194HSection 194JSection 201(1)

…ered by decisions. Therefore, we only need to refer those decisions. So far as the first issue whether the payment of roaming charges falls within the meaning of “FTS”, Ld. AR submitted that the Hon’ble Delhi High Court decided in CIT Vs. Bharti Cellular Ltd. 319 ITR 139 (Del) that roaming service not involving human interference is not a technical service as contemplated under Explanation 2 to section 9(1)(vii) and therefore not liable for TDS u/s 194J. Against decision of Hon’ble Delhi High Court, the department filed appeal to Hon’ble Supreme Court whereupon the Hon’ble Supreme Court remanded matter to departm…

M/S. Idea Cellular Limited, Indore vs. The DCIT (TDS), Indore

Appeals are allowed

ITA 109/IND/2015[2012-13]Status: DisposedITAT Indore01 Aug 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 194Section 194HSection 194JSection 201(1)

…ered by decisions. Therefore, we only need to refer those decisions. So far as the first issue whether the payment of roaming charges falls within the meaning of “FTS”, Ld. AR submitted that the Hon’ble Delhi High Court decided in CIT Vs. Bharti Cellular Ltd. 319 ITR 139 (Del) that roaming service not involving human interference is not a technical service as contemplated under Explanation 2 to section 9(1)(vii) and therefore not liable for TDS u/s 194J. Against decision of Hon’ble Delhi High Court, the department filed appeal to Hon’ble Supreme Court whereupon the Hon’ble Supreme Court remanded matter to departm…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/334/2022HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…LESH KUMAR Signing Date:24.07.2024 19:47:53 Signature Not Verified ITA 334/2022 &amp; connected matters Page 72 of 149 58. The hon&#x27;ble Delhi High Court in the case of CIT v. Bharti Cellular Ltd. reported in [2009] 319 ITR 139 (Delhi) has given a finding that the facility in question provided to the assessee is a &quot;service&quot; and in a broader sense a &quot;communication service&quot;. The facility of interconnection is held as providing service which is &quot;technical&quot; in the sense that involved sophisticated technology. Thus, the factual finding of the jurisdictional High Court i…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/206/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…LESH KUMAR Signing Date:24.07.2024 19:47:53 Signature Not Verified ITA 334/2022 &amp; connected matters Page 72 of 149 58. The hon&#x27;ble Delhi High Court in the case of CIT v. Bharti Cellular Ltd. reported in [2009] 319 ITR 139 (Delhi) has given a finding that the facility in question provided to the assessee is a &quot;service&quot; and in a broader sense a &quot;communication service&quot;. The facility of interconnection is held as providing service which is &quot;technical&quot; in the sense that involved sophisticated technology. Thus, the factual finding of the jurisdictional High Court i…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/61/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…LESH KUMAR Signing Date:24.07.2024 19:47:53 Signature Not Verified ITA 334/2022 &amp; connected matters Page 72 of 149 58. The hon&#x27;ble Delhi High Court in the case of CIT v. Bharti Cellular Ltd. reported in [2009] 319 ITR 139 (Delhi) has given a finding that the facility in question provided to the assessee is a &quot;service&quot; and in a broader sense a &quot;communication service&quot;. The facility of interconnection is held as providing service which is &quot;technical&quot; in the sense that involved sophisticated technology. Thus, the factual finding of the jurisdictional High Court i…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/55/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…LESH KUMAR Signing Date:24.07.2024 19:47:53 Signature Not Verified ITA 334/2022 &amp; connected matters Page 72 of 149 58. The hon&#x27;ble Delhi High Court in the case of CIT v. Bharti Cellular Ltd. reported in [2009] 319 ITR 139 (Delhi) has given a finding that the facility in question provided to the assessee is a &quot;service&quot; and in a broader sense a &quot;communication service&quot;. The facility of interconnection is held as providing service which is &quot;technical&quot; in the sense that involved sophisticated technology. Thus, the factual finding of the jurisdictional High Court i…

Idea Cellular Limited, Indore vs. DCIT TDS, Indore

ITA 265/IND/2018[2010-11]Status: DisposedITAT Indore23 Apr 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S Vodafone Idea Ltd. Cit (Tds), बनाम/ (Formerly M/S Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/S Vodafone Idea Ltd. Dcit/Jcit (Tds), बनाम/ (Formerly M/S Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent)

Section 194HSection 194JSection 201Section 201(1)Section 250Section 254(2)Section 263

…d by decisions. Therefore, we only need to refer those decisions. So far as the first issue whether the payment of roaming charges falls within the meaning of “FTS”, Ld. AR submitted that the Hon’ble Delhi High Court decided in CIT Vs. Bharti Cellular Ltd. 319 ITR 139 (Del) that roaming service not involving human interference is not a technical service as contemplated under Explanation 2 to section 9(1)(vii) and therefore not liable for TDS u/s 194J. Against Page 7 of 65 ITA No. 415/Ind/2014 &amp; 265/Ind/2018 – AY 2010-11 M/s Vodafone Idea Ltd. (Formerly M/s Idea Cellular Ltd.) decision of Hon’ble Delhi Hig…

M/S. Idea Cellular Limited, Indore vs. The CIT (TDS), Bhopal

ITA 415/IND/2014[2010-11]Status: DisposedITAT Indore23 Apr 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S Vodafone Idea Ltd. Cit (Tds), बनाम/ (Formerly M/S Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/S Vodafone Idea Ltd. Dcit/Jcit (Tds), बनाम/ (Formerly M/S Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent)

Section 194HSection 194JSection 201Section 201(1)Section 250Section 254(2)Section 263

…d by decisions. Therefore, we only need to refer those decisions. So far as the first issue whether the payment of roaming charges falls within the meaning of “FTS”, Ld. AR submitted that the Hon’ble Delhi High Court decided in CIT Vs. Bharti Cellular Ltd. 319 ITR 139 (Del) that roaming service not involving human interference is not a technical service as contemplated under Explanation 2 to section 9(1)(vii) and therefore not liable for TDS u/s 194J. Against Page 7 of 65 ITA No. 415/Ind/2014 &amp; 265/Ind/2018 – AY 2010-11 M/s Vodafone Idea Ltd. (Formerly M/s Idea Cellular Ltd.) decision of Hon’ble Delhi Hig…

DCIT, Circle-1(1)(1), Int. Taxn., New Delhi vs. Avaya Internaional Sales Limited, Ireland

In the result, the appeal of the assessee is allowed for statistical purposes and the appeal of the revenue is dismissed

ITA 714/DEL/2020[2016-17]Status: DisposedITAT Delhi07 Mar 2023AY 2016-17

Bench: Shri N. K. Billaiya & Shri Anubhav Sharmaavaya International Sales Ltd, Vs. Acit, C/O. Mr. Rohit Verma Ernst & Circle-International Young Llp, 1St Floor, Tower B, Taxation 1(1)(1), Dlf Centre Court Building, New Delhi Sector-42, Gold Course, Gurgaon-122002 (Assessee ) (Respondent) Pan: Aakca7138A Dcit, Vs. Avaya International Sales Ltd, Circle-1(1)(1), C/O. Mr. Rohit Verma Ernst & Young Llp, 1St Floor, Tower B, International Taxation, New Delhi Dlf Centre Court Building, Sector-42, Gold Course, Gurgaon-122002 (Assessee ) (Respondent) Pan: Aakca7138A Assessee By : Dr. Shashwat Bajpai, Adv Ms. Ananya Kapoor, Adv Revenue By: Shri Sukesh Kumar Jain, Cit-Dr Date Of Hearing 16/02/2023 Date Of Pronouncement 07/03/2023

For Appellant: Dr. Shashwat Bajpai, AdvFor Respondent: Shri Sukesh Kumar Jain, CIT-DR
Section 139(4)Section 143(2)Section 143(3)Section 144C

…by it from PGCIL was not a technical service. It was held that DTL was not liable to be saddled with higher liability of TDS. The appeal was accordingly allowed. 9. The ITAT based its opinion on the decision of this Court in CITV. Bharti Cellular Ltd. [2009] 319 ITR 139/[2008] 175 Taxman 573 (Delhi) and of the Madras High Court in Skycell Communications Ltd. v. Dy. CIT [2001] 251 ITR 53/119 Taxman 496. The ITAT noted that both the decisions laid emphasis on the involvement of a &#x27;human element&#x27; for rendering technical services and imparting of technical knowledge. The ITAT held that none of those conditions were…