CIT v. Hindustan Shipyard Ltd.

MARUTI SUZUKI INDIA LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…hich contributes to earning of such profit and gains on the other. The word ‘Business Connection’ has been judiciously examined in detail by various Courts in the following cases:  CIT v R D Aggarwal & Co (SC) [56 ITR 20]  CIT v Hindustan Shipyard Ltd (AP) [109 ITR 158]  CIT v Atlas Steel Company Ltd (Cal) [164 ITR 401]  Commissioner of Income-tax v Gulf Oil (Great Britain) Ltd The ratio decidendi emanating from the aforesaid decisions is that the following conditions should exist to constitute ‘Business Connection’ in India:  A real and intimate relation must exist between the trading activities carried on…

DCIT, NEW DELHI vs. M/S. MARUTI SUZUKI INDIA LTD., NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…hich contributes to earning of such profit and gains on the other. The word ‘Business Connection’ has been judiciously examined in detail by various Courts in the following cases:  CIT v R D Aggarwal & Co (SC) [56 ITR 20]  CIT v Hindustan Shipyard Ltd (AP) [109 ITR 158]  CIT v Atlas Steel Company Ltd (Cal) [164 ITR 401]  Commissioner of Income-tax v Gulf Oil (Great Britain) Ltd The ratio decidendi emanating from the aforesaid decisions is that the following conditions should exist to constitute ‘Business Connection’ in India:  A real and intimate relation must exist between the trading activities carried on…

UK GRID SOLUTIONS LIMITED,UNITED KINGDOM vs. DCIT CIRCLE INTERNATIONAL TAX 3(1)(1), NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT vs Nokia Networks OY: 358 ITR 259 (Del) and Siemens Mobile Comm…

UK GRID SOLUTIONS LIMITED,UNITED KINGDOM vs. DCIT CIRCLE INTERNATIONAL TAX 3(1)(1), NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT vs Nokia Networks OY: 358 ITR 259 (Del) and Siemens Mobile Comm…

UK GRID SOLUTIONS LIMITED ,UNITED KINGDOM vs. DCIT CIRCLE INTL. TAXATION 3(1)(1), NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT vs Nokia Networks OY: 358 ITR 259 (Del) and Siemens Mobile Comm…

UK GRID SOLUTIONS LIMITED ,UNITED KINGDOM vs. DCIT CIRCLE INTL. TAXATION 3(1)(1), NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…SC). He also relied DIT vs Ericsson AB: 343 ITR 470 (Del). 9.8.1 In support of the submission that there is no business connection of assessee in India, Ld. Sr. Counsel relied, CIT vs. R D Aggarwal and Co. [1965] 56 ITR 20 (SC), CIT vs Hindustan Shipyard Ltd: 109 ITR 158 (AP) and CIT vs Atlas Steel Company Ltd: 164 ITR 401 (Cal). 9.8.2 As with regard to the submission that Offshore supply are not taxable under the Act, he relied Ishikawajma-Harima Heavy Industries Ltd vs DIT: [2007] 288 ITR 408 (SC), DIT vs LG Cable Ltd: [2011] 237 CTR 438 (Del), DIT vs Nokia Networks OY: 358 ITR 259 (Del) and Siemens Mobile Comm…

GE HYDRO FRANCE,NEW DELHI vs. DCIT, CIRCLE-1(3)(1), INTERNATIONAL TAXATION, NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…unsel submitted that Hon‟ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 9.2 It was submitted that when the scope of work under the bid documents covered off-shores supply and off-shores services as distinguished from on-shore supply and construction work, Ld. Tax Authorities had fallen in error in considering the three contracts to be part of one consolidated contract. It was submitted that in…

GE HYDRO FRANCE,NEW DELHI vs. DCIT, CIRCLE-1(3)(1), INTERNATIONAL TAXATION, NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri C. N. Prasad & Shri M. Balaganesh

…unsel submitted that Hon‟ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 9.2 It was submitted that when the scope of work under the bid documents covered off-shores supply and off-shores services as distinguished from on-shore supply and construction work, Ld. Tax Authorities had fallen in error in considering the three contracts to be part of one consolidated contract. It was submitted that in…

UK GRID SOLUTION LTD,UNITED KINGDOM vs. DCIT, CIRCLE-3(1)(1), INTERNATIONAL TAXATION, NEW DELHI

The appeal is allowed

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2088/Del/2022, A.Y. 2019-20 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

…unsel submitted that Hon’ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 2088.Del.2022 UK Grid Solution Ltd, United Kingdom 9.2 It was submitted that when the scope of work under the bid documents covered off-shores supply and off-shores services as distinguished from on- shore supply and construction work, Ld. Tax Authorities had fallen in error in considering the three contracts to be part…

UK GRID SOLUTION LTD,UNITED KINGDOM vs. DCIT, CIRCLE-3(1)(1), INTERNATIONAL TAXATION, NEW DELHI

The appeal is allowed

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2087/Del/2022, A.Y. 2018-19 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

…unsel submitted that Hon’ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 9.2 It was submitted that when the scope of work under the bid documents covered off-shores supply and off-shores services as distinguished from on- shore supply and construction work, Ld. Tax Authorities had fallen in error in considering the three contracts to be part of one consolidated contract. It was submitted that in…

GIESECKE & DEVRIENT INDIA PVT. LTD.,GURGAON vs. DCIT, NEW DELHI

In the result, the appeal of the assessee is allowed partly for statistical purposes

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kant

…r the deeming provision of s. 42(1) of the 1922 Act it must be shown by the Department that some of the operations were carried out in India in respect of which the income is sought to be assessed. In CIT vs. Hindustan Shipyard Ltd. 1975 CTR (AP) 97 : (1977) 109 ITR 158 (AP), the respondent-company entered into an agreement with a Polish company for the purchase of diesel engines with accessories. The agreement provided that the Polish company would render services for the effective fulfillment of the contract of sale, which included organizing of a training course in Poland for technical employees of Hindustan…

M/S. VOITH PAPER GMBH,NEW DELHI vs. DDIT, NEW DELHI

In the result, appeal of the assessee is dismissed

Bench: Shri O.P. Kant & Shri K.N. Charyassessment Year: 2010-11

…ch contributes to earning of such profit and gains on the other. 8.1 The word ‘Business Connection’ has been judiciously examined in detail by various Courts in the following cases: • CIT Vs. R.D. Aggarwal & Co., 56 ITR (SC) • CIT Vs. Hindustan Shipyard Ltd., 109 ITR 158 (AP) • CIT vs. Atlas Steel Company Ltd., 164 ITR 401 (Cal.) • Commissioner of Income-tax Vs. Gulf Oil (Great Britain) Ltd., 108 ITR 874 (Bombay) 8.2 The ratio decidenci emanating from the aforesaid decision is that the following conditions should exist to constitute ‘Business Connection’ in India: • A real and intimate relation must exist betwee…

NANJING ELECTRIC (GROUP) CO. LTD.,NOIDA vs. DCIT, NEW DELHI

In the result, the appeal of the assessee is allowed

Bench: Shri H.S. Sidhu & Shri Prashant Maharishii.T.A. No. 1124/Del/2015 Ay: 2011-12 M/S Nanjing Electric Vs. Dcit, Circle 2(2)(2), International Taxation, (Group) Co. Ltd., New Delhi No. 63, Taixin Road, Nanjing China (Pan: Aadcn3651Q) (Appellant) (Respondent)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. No. 1124/DEL/2015 AY: 2011-12 M/S NANJING ELECTRIC VS. DCIT, CIRCLE 2(2)(2), INTERNATIONAL TAXATION, (GROUP) CO. LTD., NEW DELHI No. 63, Taixin Road, Nanjing China (PAN: AADCN3651Q) (APPELLANT) (RESPONDENT) Assessee by : Sh. I.P. Bansal, Adv. Department by : Sh. M. Barnwal, Sr. DR. ORDER PER H.S. SIDHU, JM Assessee has filed the present appeal against the impugned assessment order dated 31.12.2014 passed by the Ld. Assessing Officer/DCIT, Circle2(2)(2),…

DIRECTOR OF INCOME TAX vs. ERICSSON A.B.,NEW DELHI.

…unal erroneously held that the responsibility of installing the system was not upon the assessee, and in comparing the responsibility of the assessee under the Overall Agreement to that of the Polish company in the case of CIT vs. Hindustan Shipyard Ltd., 109 ITR 158 (AP), where it was held that the services offered with the contract of sale were merely incidental 2011:DHC:6682-DB ITA 504/2007, ITA 507/2007, ITA 508/2007,ITA 511/2007, ITA 397/2007 Page 31 of 75 to the contract by way of guarantee for the efficient working of the products of sale. In the instant case, b…

DIRECTOR OF INCOME TAX

…unal erroneously held that the responsibility of installing the system was not upon the assessee, and in comparing the responsibility of the assessee under the Overall Agreement to that of the Polish company in the case of CIT vs. Hindustan Shipyard Ltd., 109 ITR 158 (AP), where it was held that the services offered with the contract of sale were merely incidental 2011:DHC:6682-DB ITA 504/2007, ITA 507/2007, ITA 508/2007,ITA 511/2007, ITA 397/2007 Page 31 of 75 to the contract by way of guarantee for the efficient working of the products of sale. In the instant case, b…

DIRECTOR OF INCOME TAX vs. L.S.CABLE LIMITED

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE SIDDHARTH MRIDUL

…>. \\ \ 'u; IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No.7O6 of 2O11 ITA No.7O4 of 2O11 TA No,7O7 oJ 2OLL Reserved on: 13th September,2O!L. Pronounced on: 30th September. 2011 ITA No.7O6 ^O11 DIRECTOR OF INCOME TAX I . CABLES LTD. I . CABLES LTD. I t" I (3) ITA No.7o7 /2oLL lr IL DIRECTOR OF INCOME ITA lNo.706 , 704, 707 l2OLt OR OF INCOME T;AX Through: VERSUS Through: APPELLANT Mr. Abhishek Maratha, Sr. Standing Counsel. . . .RESPONDENT Mr. R. Satish Kumar, Advocate. APPELLANT Mr. Abhishek Maratha, Sr. Standing Counsel, . . .RESPONDENT Mr. R. Satish Kumar, Advocate. APPELLANT Mr. Abhishek Maratha, Sr. Standing…

DIRECTOR OF INCOME TAX vs. L.S.CABLE LIMITED

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE SIDDHARTH MRIDUL

…and hence income relatable to sale outside India had not accrued in India. Such income could only be taxed outside India and not under Indian law. Further, there cannot be a business connection between a seller and purchaser (Hindustan Shipyard Ltd. – 109 ITR 158). The income from onshore ITA No.706, 704, 707/2011 Page 13 of 14 services was taxable in India, simply because such income accrued in India from services rendered in India. One need not look for business connection to tax such income. The assessee company had shipped the goods from abroad with the bill of lading in…

DIRECTOR OF INCOME TAX vs. L.S. CABLES LTD.

…and hence income relatable to sale outside India had not accrued in India. Such income could only be taxed outside India and not under Indian law. Further, there cannot be a business connection between a seller and purchaser (Hindustan Shipyard Ltd. – 109 ITR 158). The income from onshore 2011:DHC:5138-DB ITA No.706, 704, 707/2011 Page 13 of 14 services was taxable in India, simply because such income accrued in India from services rendered in India. One need not look for business connection to tax such income. The assessee company had shipped the goods from abroad with the b…