CIT v. Mitsui Engineering and Ship Building Co. Ltd.

259 ITR 248High Court2003#4015 most cited

What is CIT v. Mitsui Engineering and Ship Building Co. Ltd. authority for?

The consideration received for the sale of drawings and designs is not taxable in India if it does not accrue or arise in India, particularly in the absence of a Permanent Establishment (PE) in India, even when considering Double Taxation Avoidance Agreements (DTAA).

29

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2007 to 2025.

Also referred to as

CIT v Mitsui Engineering and Ship Building · 259 ITR 248 · sale of drawings and designs · accrual of income · arising of income · Permanent Establishment · PE · DTAA · international taxation · non-taxable income

Sections most often in play

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

Issues it is cited on

section 209(1)section 9(l)(vii)section 44bbbsection 9(2)commercial substancesection 9(l)section 59section 44bbsection 9(1)(vii)section 44bfixed place pesection 144c(3)

Judgments citing CIT v. Mitsui Engineering and Ship Building Co. 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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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)

…eld to be taxable in various Assessment Years c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 5414/Del/2016 : Asstt. Year: 2013-14 SMS Concast AG, Vs DCIT, C/o Mohinder Puri & Co., CAs, International Taxation, 1 A-D, Vandhna, 11, Tolstoy Marg, Circel -3(1)(2), New Delhi-1110001 New Delhi (APPELLANT) (RESPONDENT) PAN No. AADCC2848Q Assessee by : Ms. Richa Agarwal, CA Revenue by : Sh. Vijay B. Basanta, CIT-DR Date of Hearing: 05.03.2025 Date of Pronouncement: 21.03.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for As…

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

…d to be taxable in various Assessment Years (c) Decisions of Hon'ble Madras High Court in the case of CIT Vs. Neyveli Lignite Corporation Ltd (Neyveli), 243 ITR 459. (d) Decision of Hon'ble High Court of Delhi in the case of Mitsui Engineering & Ship Building 259 ITR 248. 9.5 Pursuant to the contractual terms, consideration for sale of drawings and designs is not liable to tax in India as the same does not accrue or arise in India. Even under the provisions of DTAA between India and Germany, the same is not liable to tax in the absence of P.E. of the assessee in India, in the relevant year. Reference may be made…

DSD NOELL GMBH ,NEW DELHI vs. DCIT CIRCLE-1(2)(2) INTERNATIONAL TAXATION , NEW DELHI

In the result, the appeals of the assessee are allowed

ITA 1619/DEL/2022[2018-19]Status: DisposedITAT Delhi21 Nov 2023AY 2018-19

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 271Section 44BSection 9Section 9(1)(vii)

…to the other party and the services rendered in connection with the installation are under a separate contract or are incidental to the execution of the contract of sale." vii. Delhi High Court decision in CIT v. Mitsui Engineering and Ship Building Co. Ltd. [259 ITR 248] is not applicable when payment for the offshore and onshore supply of goods and services was clearly demarcated and cannot be held to be a complete contract that has to be read as a whole and not in parts. viii In construing a contract, the intention of the parties is most relevant. The intention of the parties, must be judged from different typ…

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