CIT v. Estel Communication (P.) Ltd.

318 ITR 185High Court2009#4672 most cited

What is CIT v. Estel Communication (P.) Ltd. authority for?

Where services may fall into the category of consultancy services, their taxability in the context of technical, managerial, and consultancy services can be examined, especially when such services may overlap.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2014 to 2025.

Also referred to as

CIT v. Estel Communication P. Ltd. · 318 ITR 185 · section 9(1)(vii) · section 195 · fees for technical services · tax treaty · non-resident · technical services · consultancy services · managerial services

Sections most often in play

Section 195Section 37(1)Section 40(a)(ia)Section 80G

Issues it is cited on

section 9(1)(vii)section 195section 40(a)(i)section 9(1)fees for technical servicestax treatysection 40(a)(ia)section 40(a)non-residentsection 19section 40company

Judgments citing CIT v. Estel Communication (P.) Ltd.

Principal Commissioner of Income Tax - 7 vs. M/S Rohde & Schwarz India Pvt. Ltd

ITA/700/2016HC Delhi07 Nov 2016

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA

Section 40Section 9

…he assessee was under an obligation to deduct tax thereon. It was liable by virtue of Section 40(a). The disallowance by the AO was sought to be justified. The ITAT in this regard relied upon the decision of this Court in CIT vs. Estel Communications Ltd. 318 ITR 185. The question is sought to be distinguished by the Revenue on the ground that what was in issue in Estel (supra) was payment towards Internet bandwidth and whereas what is in issue in the present case is ―Frame Relay Charges‖. This Court is of the opinion that the judgment in Estel (supra) would apply because Frame Relay—according to the t…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…rendered may possibly fall in the category of consultancy services. Paragraphs 41 and 42 do not emanate for consideration in the present case, and effect thereof can be examined in an appropriate case [However, see CIT v. Estel Communication (P.) Ltd. [2009] 318 ITR 185 (Del) and Skycell Communications Ltd. (supra)].‖ Further Hon‘ble Delhi tribunal has also explained the word ‗consultant ‗in the same decision as under as under:- ―21. The word ―consultant‖ refers to a person, who is consulted and who advises or from whom information is sought. In Black‘s Law Dictionary, Eighth Edition, the word ―consultation‖ has…

Pahilajrai Jaikishan, Mumbai vs. DCIT 19(3), Mumbai

In the result, the appeal is allowed

ITA 994/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…rendered may possibly fall in the category of consultancy services. Paragraphs 41 and 42 do not emanate for consideration in the present case, and effect thereof can be examined in an appropriate case [However, see CIT v. Estel Communication (P.) Ltd. [2009] 318 ITR 185 (Del) and Skycell Communications Ltd. (supra)]. 25. Thus, the technical services consists of services of technical nature, when special skills or knowledge relating to technical field are required for their provision, managerial services are rendered for performing management functions and consultancy services relate to provision of advice by so…

Asst CIT 19(3), Mumbai vs. Pahilajrai Jaikishin, Mumbai

In the result, the appeal is allowed

ITA 1562/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…rendered may possibly fall in the category of consultancy services. Paragraphs 41 and 42 do not emanate for consideration in the present case, and effect thereof can be examined in an appropriate case [However, see CIT v. Estel Communication (P.) Ltd. [2009] 318 ITR 185 (Del) and Skycell Communications Ltd. (supra)]. 25. Thus, the technical services consists of services of technical nature, when special skills or knowledge relating to technical field are required for their provision, managerial services are rendered for performing management functions and consultancy services relate to provision of advice by so…

Director of Income Tax (Intl. Tax.)-II

ITA/292/2014HC Delhi18 Sept 2014
Section 195Section 195(2)Section 9Section 9(1)Section 9(1)(i)

…in the category of consultancy services. Paragraphs 41 and 42 do not emanate for consideration in the present case, and effect thereof can be examined in an appropriate case [However, see Commissioner of Income Tax vs. Estel Communication P. Ltd. (2009) 318 ITR 185 (Del) and Skycell Communications Ltd. (supra)]. 25. Thus, the technical services consists of services of technical nature, when special skills or knowledge relating to technical field are required for their provision, managerial services are rendered for performing management functions and consultancy services relate to provision of advic…