CIT v. Kotak Securities Ltd.

DCIT, Circle- 13(2), New Delhi vs. Jbm Auto Ltd., New Delhi

In the result, appeal is partly allowed

Bench: learned first appellate authority. After considering the submissions of the assessee in the context of facts and materials on record, learned first appellate authority granted partial relief to the assessee by deleting the disallowance of interest expenditure amounting to Rs.4,23,24,958/- made under Rule 8D(2)(ii). However, she upheld the disallowance of Rs.35,66,390/- under Rule 8D(2)(iii).

…assessee’s own case in assessment years 2010-11 to 2012-13 (supra), wherein, the Coordinate Bench has held as under: “13 We find that now this issue stands settled by the Hon’ble Supreme Court in the case of CIT Vs. Kotak Securities Ltd. reported in (2016) 383 ITR 1 (SC), wherein the Hon’ble Supreme Court concluded that transaction charges paid to BSE by its members does not fall under the category of technical services, and therefore, no TDS is following the ratio laid down by the Hon’ble Apex Court in the case of CIT Vs. Kotak Securities (supra), we hold that the aforesaid nature of payment does not fall wit…

DCIT, Circle- 13(2), New Delhi vs. Jbm Auto Ltd., New Delhi

In the result, appeal is partly allowed

Bench: learned first appellate authority. After considering the submissions of the assessee in the context of facts and materials on record, learned first appellate authority granted partial relief to the assessee by deleting the disallowance of interest expenditure amounting to Rs.4,23,24,958/- made under Rule 8D(2)(ii). However, she upheld the disallowance of Rs.35,66,390/- under Rule 8D(2)(iii).

…assessee’s own case in assessment years 2010-11 to 2012-13 (supra), wherein, the Coordinate Bench has held as under: “13 We find that now this issue stands settled by the Hon’ble Supreme Court in the case of CIT Vs. Kotak Securities Ltd. reported in (2016) 383 ITR 1 (SC), wherein the Hon’ble Supreme Court concluded that transaction charges paid to BSE by its members does not fall under the category of technical services, and therefore, no TDS is following the ratio laid down by the Hon’ble Apex Court in the case of CIT Vs. Kotak Securities (supra), we hold that the aforesaid nature of payment does not fall wit…

ACIT Circle- 10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

ACIT Circle-10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

ACIT Circle-10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

ACIT Circle- 10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

ACIT Circle-10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

ACIT Circle-10(1), New Delhi vs. Global Vectra Helicorp Ltd, New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

Global Vectra Helicorp Ltd., New Delhi vs. DCIT Circle-10(1), New Delhi

In the result, all the appeals of Revenue are dismissed

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2015-16

…, they cannot fall in the definition of FTS, either under Section 9(1)(vii) of the Act or the respective treaty provisions. In support of such contention, he relied upon a decision of the Hon’ble Supreme Court in case of CIT Vs. Kotak Securities Ltd. [2016] 383 ITR 1 (SC). He also relied upon a decision of Madras High Court in case of Skycell Communications Ltd. Vs. DCIT [2001] 251 ITR 53 (Mad.). Referring to the Circular No.715, dated 08.08.1995 issued by the Central Board of Direct Taxes (CBDT), he submitted that as per the said circular, the activities of repair and maintenance are in the nature of works…

Servicenow Nederland Bv, Netherlands vs. Assistant Commissioner of Income Tax, Circle International Tax 3(1)(2), Delhi

In the result, assessee’s appeals in ITA No

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar: (A.Y. 2020-21) & : (A.Y. 2021-22)

…e since assessee had merely granted access to software, it does not fall within the definition of FTS even as per the Act. In this regard, analogy could be drawn from the decision of Hon’ble Supreme Court in the case of CIT vs Kotak Securities Ltd reported in 383 ITR 1 (SC) wherein it was held that service made available by Bombay Stock Exchange [BSE Online Trading (BOLT) System] for which transaction charges are paid by members of BSE are common services that every member of Stock Exchange is necessarily required to avail of to carry out trading in securities in Stock Exchange; such services do not amount to 'te…

Servicenow Nederland Bv, Netherlands vs. Assistant Commissioner of Income Tax, Circle International Taxation 3(1)(2), New Delhi

In the result, assessee’s appeals in ITA No

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar: (A.Y. 2020-21) & : (A.Y. 2021-22)

…e since assessee had merely granted access to software, it does not fall within the definition of FTS even as per the Act. In this regard, analogy could be drawn from the decision of Hon’ble Supreme Court in the case of CIT vs Kotak Securities Ltd reported in 383 ITR 1 (SC) wherein it was held that service made available by Bombay Stock Exchange [BSE Online Trading (BOLT) System] for which transaction charges are paid by members of BSE are common services that every member of Stock Exchange is necessarily required to avail of to carry out trading in securities in Stock Exchange; such services do not amount to 'te…

Servicenow Nederland Bv, Netherland vs. ACIT, Circle- Int. Taxation 3(1)(2), Delhi

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

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…since assessee had merely granted access to software, it does not fall within the definition of FTS even as per the Act. In this regard, analogy could be drawn from the decision of Hon’ble Supreme Court in the case of CIT vs Kotak Securities Ltd reported in 383 ITR 1 (SC) Page 14 of 16 Service Now Nederland BV vs. ACIT wherein it was held that service made available by Bombay Stock Exchange [BSE Online Trading (BOLT) System] for which transaction charges are paid by members of BSE are common services that every member of Stock Exchange is necessarily required to avail of to carry out trading in securities…

The Commissioner of Income Tax - International Taxation -3 vs. Springer Nature Customer Services Centre Gmbh (Earlier Known As Springer Customers Centre Gmbh)

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…ident entity, in that case, concerned merely procurement of export orders. 9.3 Under the Commissionaire Agreement, both managerial and consultancy services, as also technical services, involve human intervention. [See CIT v Kotak Securities Ltd., [2016] 383 ITR 1(SC)]. The services provided by the respondent/assessee under the Commissionaire Agreement, which include order handling, inventory management, debtor management and subscription management, involve human effort and hence took the Digitally Signed By:TARUN RANA Signing Date:12.07.2023 18:08:11 Signature Not Verified ITA No.306/2023…