CIT v. KKK West Germany

ASSISTANT COMMISSIONER OF INCOME TAX, CHENNAI vs. COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LIMITED, CHENNAI

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. R. Raghunatha, Hon'Bleआयकर अपील सं./Ita Nos.1193, 1194, 1205, 1206 & 1207/Chny/2024 (निर्धारण वर्ष / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) Cognizant Technology Solutions Vs The Asst. Commissioner India Pvt. Ltd., Of Income Tax, No.5/535, Okkiam Thoraipakkam, Central Circle 1(1), Old Mahabalipuram Road, Chennai. Chennai - 600 096. (प्रत्यर्थी/Respondent) Pan: Aaacd 3312M (अपीलार्थी/Appellant) & आयकर अपील सं./Ita Nos.1262, 1263, 1264, 1265 & 1266/Chny/2024 (निर्धारण वर्ष / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) The Asst. Commissioner Of Vs Cognizant Technology Income Tax, Solutions India Pvt. Ltd., Central Circle 1(1), No.5/535, Okkiam Chennai. Thoraipakkam, Old Mahabalipuram Road, Chennai - 600 096. Pan: Aaacd 3312M (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) निधारिती की ओर से/Assessee By राजस्व की ओर से /Revenue By : Shri N.V. Balaji, Advocate : Shri R. Clement Ramesh Kumar, Cit & Ms. Anitha, Addl. Cit सुनवाई की तारीख/Date Of Hearing : 11.03.2025 घोषणा की तारीख/Date Of Pronouncement : 16.05.2025 - 2 -

…to earn income from a source outside India as the Company is an exporter of computer software and related services. Reliance in this regard was placed on various decisions as listed below: O CIT Vs Aktiengesellschaft Kuhnle Kopp and Kausch W. Germany by BHEL 262 ITR 513 (Mad HC) reference in this regard is made to Page No. 220 (Para No. 8) of the case law paper book • Deputy/Joint Commissioner of Income-tax (OSD) vs Aspire Systems India (P.) Ltd [2023] 157 taxmann.com 699 (Chennai ITAT) reference in this regard is made to Page No. 381 (Para No. 12) of the case law paper book O Titan Industries v ITO (11 SOT 206…

COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LIMITED,CHENNAI vs. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 1(1),, CHENNAI

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita Nos.1193, 1194, 1205, 1206 & 1207/Chny/2024 ("नधा"रण वष" / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) Vs Cognizant Technology Solutions The Asst. Commissioner India Pvt. Ltd., Of Income Tax, No.5/535, Okkiam Thoraipakkam, Central Circle 1(1), Old Mahabalipuram Road, Chennai. Chennai – 600 096. Pan : Aaacd 3312M (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.1262, 1263, 1264, 1265 & 1266/Chny/2024 ("नधा"रण वष" / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) Vs The Asst. Commissioner Of Cognizant Technology Income Tax, Solutions India Pvt. Ltd., Central Circle 1(1), No.5/535, Okkiam Chennai. Thoraipakkam, Old Mahabalipuram Road, Chennai – 600 096. Pan : Aaacd 3312M (अपीलाथ"/Appellant) (""यथ"/Respondent)

…to earn income from a source outside India as the Company is an exporter of computer software and related services. Reliance in this regard was placed on various decisions as listed below: o CIT Vs Aktiengesellschaft Kuhnle Kopp and Kausch W. Germany by BHEL 262 ITR 513 (Mad HC) reference in this regard is made to Page No. 220 (Para No. 8) of the case law paper book o Deputy/Joint Commissioner of Income-tax (OSD) vs Aspire Systems India (P.) Ltd [2023] 157 taxmann.com - 18 - ITA Nos.1193, 1194, 1205 to 1207, 1262 to 1266/CHNY/2024 699 (Chennai ITAT) reference in this regard is made to Page No. 381 (Para No. 12…

COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LIMITED,CHENNAI vs. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 1(1),, CHENNAI

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita Nos.1193, 1194, 1205, 1206 & 1207/Chny/2024 ("नधा"रण वष" / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) Vs Cognizant Technology Solutions The Asst. Commissioner India Pvt. Ltd., Of Income Tax, No.5/535, Okkiam Thoraipakkam, Central Circle 1(1), Old Mahabalipuram Road, Chennai. Chennai – 600 096. Pan : Aaacd 3312M (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.1262, 1263, 1264, 1265 & 1266/Chny/2024 ("नधा"रण वष" / Assessment Years: 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15) Vs The Asst. Commissioner Of Cognizant Technology Income Tax, Solutions India Pvt. Ltd., Central Circle 1(1), No.5/535, Okkiam Chennai. Thoraipakkam, Old Mahabalipuram Road, Chennai – 600 096. Pan : Aaacd 3312M (अपीलाथ"/Appellant) (""यथ"/Respondent)

…to earn income from a source outside India as the Company is an exporter of computer software and related services. Reliance in this regard was placed on various decisions as listed below: o CIT Vs Aktiengesellschaft Kuhnle Kopp and Kausch W. Germany by BHEL 262 ITR 513 (Mad HC) reference in this regard is made to Page No. 220 (Para No. 8) of the case law paper book o Deputy/Joint Commissioner of Income-tax (OSD) vs Aspire Systems India (P.) Ltd [2023] 157 taxmann.com - 18 - ITA Nos.1193, 1194, 1205 to 1207, 1262 to 1266/CHNY/2024 699 (Chennai ITAT) reference in this regard is made to Page No. 381 (Para No. 12…

SAME DEUTZ FAHR ITALIA SPA,ITALY vs. ASSISTANT COMMISSIONER, CHENNAI

In the result the appeal of the assessee is allowed

Bench: Shri Aby T Varkey, Hon’Ble & Shri S.R.Raghunatha, Hon’Ble

…he decision of Motif India Ltd would be squarely applicable to the Assessee. 7.2 Further, the Assessee also relies on the Hon’ble Madras High Court Decision in the case of CIT Vs Aktiengesellschaft Kuhnle Kopp and Kausch W. Germany by BHEL reported in [2003) 262 ITR 513 (Madras) wherein it is held as under: "8. As far as royalty on export sales is concerned, that amount is also exempt under section 9(1)(vi). Though the royalty was paid by a resident in India, it cannot be said that it was deemed to have accrued or arisen in India as the royalty was paid out of the export sales and hence, the source for royalty i…

RAMESH FLOWERS PRIVATE LIMITED,TUTICORIN vs. ITO(INTERNATIONAL TAXATION), TUTICORIN

The appeal stand allowed

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…आयकर अपीलीय अिधकरण ‘बी’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.70/Chny/2021 (िनधाCरण वषC / Assessment Year: 2020-21) M/s. Ramesh Flowers Pvt. Ltd. ITO बनाम A-62(A), Sipcot Industrial Complex, (International Taxation), Therku Veerapandiapuram, Tuticorin. / Vs. Tuticorin – 628 002. "थायी लेखा सं./जीआइ आर सं./PAN/TAN AAACR-9251-P/ MRIR-00587-G (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"…

M/S. EXPLEO SOLUTIONS LTD.,,CHENNAI vs. ACIT, CHENNAI

The appeals stands allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…that the payment was made by the assessee for the purpose or carrying on business outside India and hence, the same would be covered by exclusionary clause of section 9(1)(vii)(b) as held by the Hon’ble Madras High Court in the case of CIT v. KKK West Germany 262 ITR 513. We find force in the submissions of the ld. Counsel. The issue of interpretation of agreements for avoidance of double taxation has always been ongoing. More particularly when it involves importing the meaning of any expressions from the interpretation ITA Nos. 2773 & 2774/Chny/2019 adopted for any other tax treaty. India has signed tax treatie…

M/S. EXPLEO SOLUTIONS LTD.,,CHENNAI vs. ACIT, CHENNAI

The appeals stands allowed for statistical purposes

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…that the payment was made by the assessee for the purpose or carrying on business outside India and hence, the same would be covered by exclusionary clause of section 9(1)(vii)(b) as held by the Hon’ble Madras High Court in the case of CIT v. KKK West Germany 262 ITR 513. We find force in the submissions of the ld. Counsel. The issue of interpretation of agreements for avoidance of double taxation has always been ongoing. More particularly when it involves importing the meaning of any expressions from the interpretation ITA Nos. 2773 & 2774/Chny/2019 adopted for any other tax treaty. India has signed tax treatie…

SQS INDIA BFSI LTD. (FORMERLY KNOWN AS M/S. THINKSOFT GLOBAL SERVICES LTD.),CHENNAI vs. DCIT CORPORATE CIRCLE 6(2), CHENNAI

In the result, the appeal filed by the assessee is partly allowed for statistical purposes for both the assessment years

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 223 & 224/Chny/2019 िनधा"रण वष"/Assessment Years:2012-13 & 2013-14 M/S. Sqs India Bfsi Ltd. (Formerly The Deputy Commissioner Of Known As M/S. Thinksoft Global Vs. Income Tax, Services Ltd.) Door No. 6A, 6Th Floor, Corporate Circle 6(2), Prince Infocity Ii, 283/3 & 283/4, Rajiv Chennai. Gandhi Salai (Omr), Kandanchavadi, Chennai 600 036. [Pan:Aabct0976G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Vikram Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri G. Johnson, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 25.03.2021 घोषणा की तारीख /Date Of Pronouncement : 03.05.2021 आदेश /O R D E R Per Duvvuru Rl Reddy: Both The Appeals Filed By The Same Assessee Are Directed Against The Common Order Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai, Dated 31.10.2018 Relevant To The Assessment Years 2012-13 & 2013-14. Besides Challenging Confirmation Of Disallowance Of Export Commission Payment In The Assessment Year 2012-13, The Assessee Also Challenged Confirmation Of Disallowance Towards Payments For Professional Services Rendered For Both The Assessment Years 2012-13 & 2013-14. 2

…e purpose of earning an income from outside India and hence the payment made by the assessee would be covered by exclusionary clause of section 9(1)((vii)(b) of the Act as has been upheld by the Hon’ble Madras High Court in the case of CIT v. KKK West Germany 262 ITR 513 besides heavily relying on the decision in the case of Evolv Clothing Company Pvt. Ltd. v. ACIT 307 ITR 72 and prayed for deleting the addition. On the other hand, the ld. DR strongly supported the orders of authorities below. 4. We have heard both the parties, perused the materials available on record and gone through the orders of authorities…

SQS INDIA BFSI LTD. (FORMERLY KNOWN AS M/S. THINKSOFT GLOBAL SERVICES LTD.),CHENNAI vs. DCIT CORPORATE CIRCLE 6(2), CHENNAI

In the result, the appeal filed by the assessee is partly allowed for statistical purposes for both the assessment years

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 223 & 224/Chny/2019 िनधा"रण वष"/Assessment Years:2012-13 & 2013-14 M/S. Sqs India Bfsi Ltd. (Formerly The Deputy Commissioner Of Known As M/S. Thinksoft Global Vs. Income Tax, Services Ltd.) Door No. 6A, 6Th Floor, Corporate Circle 6(2), Prince Infocity Ii, 283/3 & 283/4, Rajiv Chennai. Gandhi Salai (Omr), Kandanchavadi, Chennai 600 036. [Pan:Aabct0976G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Vikram Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri G. Johnson, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 25.03.2021 घोषणा की तारीख /Date Of Pronouncement : 03.05.2021 आदेश /O R D E R Per Duvvuru Rl Reddy: Both The Appeals Filed By The Same Assessee Are Directed Against The Common Order Of The Ld. Commissioner Of Income Tax (Appeals) 15, Chennai, Dated 31.10.2018 Relevant To The Assessment Years 2012-13 & 2013-14. Besides Challenging Confirmation Of Disallowance Of Export Commission Payment In The Assessment Year 2012-13, The Assessee Also Challenged Confirmation Of Disallowance Towards Payments For Professional Services Rendered For Both The Assessment Years 2012-13 & 2013-14. 2

…e purpose of earning an income from outside India and hence the payment made by the assessee would be covered by exclusionary clause of section 9(1)((vii)(b) of the Act as has been upheld by the Hon’ble Madras High Court in the case of CIT v. KKK West Germany 262 ITR 513 besides heavily relying on the decision in the case of Evolv Clothing Company Pvt. Ltd. v. ACIT 307 ITR 72 and prayed for deleting the addition. On the other hand, the ld. DR strongly supported the orders of authorities below. 4. We have heard both the parties, perused the materials available on record and gone through the orders of authorities…