CIT v. Klayman Porcelains Ltd.

229 ITR 735High Court1988#5121 most cited

What is CIT v. Klayman Porcelains Ltd. authority for?

Design and documentation fees are not royalty but part of the cost of a plant supplied from abroad.

23

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT v. Klayman Porcelains Ltd. · 229 ITR 735 · design fees · documentation fees · royalty · plant supplied abroad · international taxation

Also reported as

96 Taxmann 221

Sections most often in play

Section 143(3)Section 234BSection 9(1)(vii)Section 144CSection 148Section 271(1)(C)Section 263Section 142(1)

Issues it is cited on

section 209(1)fixed place pesection 9(1)(vii)section 144c(3)interest u/s 234csection 9(1)(i)section 263(1)interest u/s 234bfees for technical servicessection 5(2)section 144c(1)interest under section 234b

Judgments citing CIT v. Klayman Porcelains Ltd.

SMS GROUP GMBH,DELHI vs. ACIT.CIRCLE-3(1)(2), NEW DELHI

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

ITA 377/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Dec 2025AY 2022-23

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon‟ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT, CIRCLE 3(1)(2), INTERNATIONAL TXATION, NEW DELHI

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

ITA 993/DEL/2023[2020-21]Status: DisposedITAT Delhi24 Dec 2025AY 2020-21

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon‟ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT CIRCLE - 3(1)(2) INTL. TAXATION, NEW DELHI

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

ITA 3297/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Dec 2025AY 2021-22

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon‟ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT, CIRCLE-3(1)(2) INT. TAXATION, NEW DELHI

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

ITA 1592/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Dec 2025AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon‟ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT, CIRCLE-3(1)(2), INT. TAXATION, NEW DELHI

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

ITA 1591/DEL/2022[2017-18]Status: DisposedITAT Delhi24 Dec 2025AY 2017-18

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon‟ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS MEVAC UK LTD.,NEW DELHI vs. ACIT (INTERNATIONAL TAXATION), CIRCLE-3(1)(2), NEW DELHI

ITA 9738/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Apr 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT, CIRCLE-3(1)(2) (INT. TAX.), NEW DELHI

ITA 4044/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Apr 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS MEVAC UK LTD.,NEW DELHI vs. ACIT (INTERNATIONAL TAXATION), CIRCLE-3(1)(2), NEW DELHI

ITA 3070/DEL/2019[2015-16]Status: DisposedITAT Delhi09 Apr 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT (INTERNATIONAL TAXATION), CIRCLE-3(1)(2), NEW DELHI

ITA 7570/DEL/2017[2014-15]Status: DisposedITAT Delhi09 Apr 2025AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. ACIT (INTERNATIONAL TAXATION), CIRCLE-3(1)(2), NEW DELHI

ITA 7569/DEL/2017[2013-14]Status: DisposedITAT Delhi09 Apr 2025AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH,NEW DELHI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI

ITA 256/DEL/2017[2012-13]Status: DisposedITAT Delhi09 Apr 2025AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (SMS SIEMAG AG),NEW DELHI vs. ACIT, CIRCLE- 3(1)(2), INTL. TAXATION, NEW DELHI

ITA 6161/DEL/2015[2011-12]Status: DisposedITAT Delhi09 Apr 2025AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (SMS SIEMAG AG),NEW DELHI vs. ACIT, CIRCLE- 3(1)(2), INTL. TAXATION, NEW DELHI

ITA 6359/DEL/2014[2010-11]Status: DisposedITAT Delhi09 Apr 2025AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (FORMERLY SMS SIEMAG AG),NEW DELHI vs. AACIT, CIRCLE- 3(1)(2), INTL. TAXATION, NEW DELHI

ITA 1074/DEL/2014[2007-08]Status: DisposedITAT Delhi09 Apr 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (FORMERLY SMS SIEMAG AG),NEW DELHI vs. ACIT, CIRCLE- 3(1)(2), INTL TAXATION, NEW DELHI

ITA 6106/DEL/2012[2009-10]Status: DisposedITAT Delhi09 Apr 2025AY 2009-10

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (FORMERLY SMS SIEMAG AG),NEW DELHI vs. ACIT, CIRCLE- 3(1)(2), INTL. TAXATION, NEW DELHI

ITA 2144/DEL/2012[2007-08]Status: DisposedITAT Delhi09 Apr 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS GROUP GMBH (FORMERLY SMS SIEMAG AG),NEW DELHI vs. ADDL. DIT, NEW DELHI

ITA 5580/DEL/2011[2008-09]Status: DisposedITAT Delhi09 Apr 2025AY 2008-09

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS CONCAST AG,NEW DELHI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI

Appeal is allowed

ITA 5414/DEL/2016[2013-14]Status: DisposedITAT Delhi21 Mar 2025AY 2013-14

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Ms. Richa Agarwal, CAFor Respondent: Sh. Vijay B. Basanta, CIT-DR
Section 143(3)Section 234B

…he following decisions: 1. Linde Engineering Division Vs. DIT, 365 ITR 1 (Delhi HC) 2. CIT Vs. Neyveli Lignite Corporation Ltd., 243 ITR 459 (Madras HC) 3. CIT Vs. Mitsui Engineering and Ship Building 259 ITR 248 (Madras HC) 4. CIT Vs. Klayman Porcelains Ltd. 229 ITR 735 (AP HC) 5. DIT International Tax Vs. Nissho IWAI Corporation (ITA No.612 of 2013) 6. Quotech GmbHH Vs. DCIT, 58 taxmann.com 232 9. He submitted, the decision of the Hon’ble Karnataka High Court in case of AEG Aktiengesllschaft Vs. CIT (supra) is not germane to the issue at hand. Without prejudice, he submitted, in any case, if in the said decisio…

SMS CONCAST AG,NEW DELHI vs. ACIT, (INTERNATIONAL TAXATION), CIRCLE- 3(1)(2) , NEW DELHI

In the result, all the three appeals of AYs 2015-16, 2016-17 & 2017-18

ITA 2695/DEL/2018[2014-15]Status: DisposedITAT Delhi06 Jan 2025AY 2014-15

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahmanddit, Circle 2 (2), Vs. Sms Siemag Ag, New Delhi. C/O Mohinder Puri & Co., 1A-1D, Vandhna, 11, Tolstoy Marg, New Delhi – 110 01. (Aadcs1173J) Sms Siemag Ag, Vs. Ddit, Circle 2 (2), C/O Mohinder Puri & Co., New Delhi. 1A-1D, Vandhna, 11, Tolstoy Marg, New Delhi – 110 01. (Aadcs1173J)

For Appellant: Shri Percy Pardiwalla, Sr. AdvocateFor Respondent: Shri Vijay B Vasanta, CIT DR
Section 142(1)Section 143(1)Section 148

…ally incorrect. Accordingly, he brought to our notice page 25 of the paper book which is the decision of ITAT, Vishakhapatnam for AY 1992-93 wherein ITAT considered the facts on record and held by referring to the case of CIT v. Klayman Porcelains Ltd. (1988) 229 ITR 735 (AP) wherein Hon’ble Andhra Pradesh High Court held that the design and documentation fees cannot be considered as royalty but is only to be considered as part of plant supplied from abroad. Further he brought to our notice pages 30 to 38 of the paper book wherein ITAT, Vishakhapatnam gave relief to the assessee on the similar ground. 12. Ld. AR…

SMS CONCAST AG,NEW DELHI vs. DDIT, NEW DELHI

In the result, the appeal is partly allowed

ITA 1361/DEL/2012[2008-09]Status: DisposedITAT Delhi16 Jun 2023AY 2008-09

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2008-09

Section 9(1)(vii)

…e following decisions: 1. Linde Engineering Division Vs. DIT, 365 ITR 1 (Delhi HC) 2. CIT Vs. Neyveli Lignite Corporation Ltd., 243 ITR 459 (Madras HC) 3. CIT Vs. Mitsui Engineering and Ship Building 259 ITR 248 (Madras HC) 4. CIT Vs. Klayman Porcelains Ltd. 229 ITR 735 (AP HC) 5. DIT International Tax Vs. Nissho IWAI Corporation (ITA No.612 of 2013) 6. Quotech GmbHH Vs. DCIT, 58 taxmann.com 232 9 | P a g e AY: 2008-09 9. He submitted, the decision of the Hon’ble Karnataka High Court in case of AEG Aktiengesllschaft Vs. CIT (supra) is not germane to the issue at hand. Without prejudice, he submitted, in any ca…

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CIT v. Klayman Porcelains Ltd. (229 ITR 735) — Cited in 23 Judgments | BharatTax