CIT v. R.D. Aggarwal and Co.

56 ITR 20Supreme Court of India1965#631 most cited

What is CIT v. R.D. Aggarwal and Co. authority for?

A 'business connection' for non-residents requires a real and intimate relation between their trading activities outside India and activities within India, contributing directly or indirectly to their earnings. The Supreme Court assigned a wide meaning to this term.

156

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. R.D. Aggarwal and Co. · 56 ITR 20 · Section 9(1)(i) · Section 195 · business connection · non-resident income · income deemed to accrue · real and intimate relation · PE threshold

Sections most often in play

Section 143(3)Section 195Section 1961Section 9(1)(vii)Section 144C(13)Section 234BSection 9(1)(i)Section 115A
Read the full judgment

Issues it is cited on

section 44bbbdependent agent pesection 9(1)(i)agency peconstruction pefixed place pesection 44bbsection 5(2)business connectionsection 42section 44bsection 115a

Judgments citing CIT v. R.D. Aggarwal and Co.

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/673/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…in India." 43. It is apparent from the plain reading of Section 9(1) of the Act that all income which accrues or arises through or from any business connection in India would be deemed to accrue or arise in India. In CIT v. R.D. Aggarwal & Co.: (1965) 56 ITR 20 (SC), the Supreme Court observed that business connection would mean “a relation between a business carried on by a non-resident and some activity in the taxable territories which are attributable directly or indirectly to the earnings, profits or gains of such business”. However, by virtue of Explanation 1 to Section 9(1) of the Act, only suc…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/667/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…in India." 43. It is apparent from the plain reading of Section 9(1) of the Act that all income which accrues or arises through or from any business connection in India would be deemed to accrue or arise in India. In CIT v. R.D. Aggarwal & Co.: (1965) 56 ITR 20 (SC), the Supreme Court observed that business connection would mean “a relation between a business carried on by a non-resident and some activity in the taxable territories which are attributable directly or indirectly to the earnings, profits or gains of such business”. However, by virtue of Explanation 1 to Section 9(1) of the Act, only suc…

M/S Balmer Lawries & Co. Ltd., Kolkata vs. Income Tax Officer(It) WD-1(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2079/KOL/2014[2012-2013]Status: DisposedITAT Kolkata27 Apr 2016AY 2012-2013

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2012-13 M/S Balmer Lawrie & Co. V/S. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [Pan No. Aabcb 0984 E] Bhawan (Poorva), 2Nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, Sr-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, Jcit-Dr ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date Of Hearing 27-04-2016 घोषणा क" तार"ख/Date Of Pronouncement

Section 195Section 201(1)Section 5(2)(b)

…fits and gains as are reasonably attributable to that part of the operations carried out in the taxable territories. Thus comes in the question of apportionment under subsection (3) of section 42. In Commissioner of Income-tax v. R. D. Aggarwal and Co. [1965] 56 ITR 20 (SC), Shah J., as he then was, speaking for this court, said at page 24: " A business connection in section 42 involves a relation between a business carried on by a nonresident which yields profits or gains and some activity in the taxable territories which contributes directly or indirectly to the earning of those profits or gains. It predicates…

DCIT, New Delhi vs. M/S Vertex Customer Management Ltd., New Delhi

In the result Appeal no 3368/del/2013 of assessee is partly allowed

ITA 3759/DEL/2013[2004-05]Status: DisposedITAT Delhi04 Mar 2016AY 2004-05

Bench: Shri I.C.Sudhir & Shri Prashant Maharishidcit, Vertex Customer Management Ltd., Circle-3(2), C/O. Price Waterhouse Coopers, Vs. New Delhi 11A, Vishnu Digamber Marg, Sucheta Bhawan, New Delhi Pan:Aabcv9414D (Appellant) (Respondent) Vertex Customer Management Ltd., Dcit, C/O. Pricewaterhouse Coopers, Circle-3(2), Vs. 11A, Vishnu Digamber Marg, Sucheta New Delhi Bhawan, New Delhi Pan:Aabcv9414D Dcit, Circle-3(2), New Delhi (Appellant) (Respondent)

For Appellant: Sh.Ravi Sharma, CAFor Respondent: Smt. Anshu Prakash, Sr. DR
Section 234BSection 9(1)(i)

…ess Connection has not been defined in the Income tax Act.Thus rightly so, the Bombay High Court in Blue Star Engg. Co. (Bom) (P) Ltd v CIT [1969] 73 ITR 283 (Bom) following the principle laid down by honorable Supreme court in CIT v R D Aggarwal & Co. [1965] 56 ITR 20, 24 (SC) has stated that since the term Business Connection admits of no precise definition, the solution of the question must depend upon the particular facts of each case. Further, various honorable High Courts in Bangalore Woollen Cotton & Silk Mills Co. Ltd V CIT [1950] 18 ITR 423 (Mad); CIT v Evans Medical Supplies Ltd. [1959] 36 ITR 418 (Bom)…

Pahilajrai Jaikishan, Mumbai vs. DCIT 19(3), Mumbai

In the result, the appeal is allowed

ITA 994/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…her directly or indirectly, through and from any business connection in India, or through or from any property in India etc. 10. What is meant by 'business connection' has been interpreted by the Supreme Court in the case of CIT v. R.D. Aggarwal & Co. [1965] 56 ITR 20 and subsequently inBarendra Prasad Ray v. ITO [1981] 129 ITR 295/6 Taxman 19 (SC). We need not dwell on the said aspect in detail for several reasons, though Circular No. 23 dated 23rd July, 1969 issued by the Central Board of Direct Taxes would not be applicable as it stands withdrawn with effect from 22nd October, 2009 vide Circular No.7 of 2009.…

Asst CIT 19(3), Mumbai vs. Pahilajrai Jaikishin, Mumbai

In the result, the appeal is allowed

ITA 1562/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…her directly or indirectly, through and from any business connection in India, or through or from any property in India etc. 10. What is meant by 'business connection' has been interpreted by the Supreme Court in the case of CIT v. R.D. Aggarwal & Co. [1965] 56 ITR 20 and subsequently inBarendra Prasad Ray v. ITO [1981] 129 ITR 295/6 Taxman 19 (SC). We need not dwell on the said aspect in detail for several reasons, though Circular No. 23 dated 23rd July, 1969 issued by the Central Board of Direct Taxes would not be applicable as it stands withdrawn with effect from 22nd October, 2009 vide Circular No.7 of 2009.…

Elve Corporation, Mumbai vs. ACIT 12(3), Mumbai

In the result, the assessee’s appeals are partly allowed for statistical purposes, and the Revenue’s appeal is partly allowed

ITA 6279/MUM/2012[2009-10]Status: DisposedITAT Mumbai20 Nov 2015AY 2009-10

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. Nos. 4108/Mum/2012 & 6279/Mum/2012 ("नधा"रण वष" / Assessment Years: 2008-09 & 2009-10) Elve Corporation Asst. Cit-12(3), बनाम/ Elve Chambers, Green Street, Aayakar Bhavan, Vs. Fort, Mumbai-400 001 Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R ("नधा"रती/Assessee) (राज"व /Revenue) : & आयकर अपील सं./I.T.A. No. 6229/Mum/2012 ("नधा"रण वष" / Assessment Year: 2009-10) Asst. Cit-12(3), Elve Corporation बनाम/ Aayakar Bhavan, Elve Chambers, Green Street, Vs. Mumbai Fort, Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R (राज"व /Revenue) ("नधा"रती/Assessee) : राज"व क" ओर से/Revenue By : Shri M. C. Naniwadekar "नधा"रती क" ओर से / Assessee By : Shri Vivek Anand Perapurna सुनवाई क" तार"ख / : 21.08.2015 Date Of Hearing घोषणा क" तार"ख / : 20.11.2015 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Set Of Three Appeals For Two Consecutive Years, Being Assessment Years (A.Ys.) 2008-09 & 2009-10, By The Assessee & The Revenue Respectively

For Appellant: Shri Vivek Anand PerapurnaFor Respondent: Shri M. C. Naniwadekar
Section 143(3)Section 172Section 195Section 195(2)Section 250(6)Section 40

…o that one may not be required to even travel to the deeming provision of section 9, which in a way seeks to extend and to definition the scope of accrual by and through the concept of ‘business connection’. As explained in CIT vs. R. D. Aggarwal & Co. [1965] 56 ITR 20 (SC), which stands referred to in Toshoku Ltd. (supra), and continues to govern the field, business connection involves the relationship between the business carried on by a non-resident (outside taxable territories), which yields profits or gains, and some activity in the taxable territories which contributes directly or indirectly to the earning…

ACIT Cir 12(3), Mumbai vs. Elve Corporation, Mumbai

In the result, the assessee’s appeals are partly allowed for statistical purposes, and the Revenue’s appeal is partly allowed

ITA 6229/MUM/2012[2009-10]Status: DisposedITAT Mumbai20 Nov 2015AY 2009-10

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. Nos. 4108/Mum/2012 & 6279/Mum/2012 ("नधा"रण वष" / Assessment Years: 2008-09 & 2009-10) Elve Corporation Asst. Cit-12(3), बनाम/ Elve Chambers, Green Street, Aayakar Bhavan, Vs. Fort, Mumbai-400 001 Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R ("नधा"रती/Assessee) (राज"व /Revenue) : & आयकर अपील सं./I.T.A. No. 6229/Mum/2012 ("नधा"रण वष" / Assessment Year: 2009-10) Asst. Cit-12(3), Elve Corporation बनाम/ Aayakar Bhavan, Elve Chambers, Green Street, Vs. Mumbai Fort, Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R (राज"व /Revenue) ("नधा"रती/Assessee) : राज"व क" ओर से/Revenue By : Shri M. C. Naniwadekar "नधा"रती क" ओर से / Assessee By : Shri Vivek Anand Perapurna सुनवाई क" तार"ख / : 21.08.2015 Date Of Hearing घोषणा क" तार"ख / : 20.11.2015 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Set Of Three Appeals For Two Consecutive Years, Being Assessment Years (A.Ys.) 2008-09 & 2009-10, By The Assessee & The Revenue Respectively

For Appellant: Shri Vivek Anand PerapurnaFor Respondent: Shri M. C. Naniwadekar
Section 143(3)Section 172Section 195Section 195(2)Section 250(6)Section 40

…o that one may not be required to even travel to the deeming provision of section 9, which in a way seeks to extend and to definition the scope of accrual by and through the concept of ‘business connection’. As explained in CIT vs. R. D. Aggarwal & Co. [1965] 56 ITR 20 (SC), which stands referred to in Toshoku Ltd. (supra), and continues to govern the field, business connection involves the relationship between the business carried on by a non-resident (outside taxable territories), which yields profits or gains, and some activity in the taxable territories which contributes directly or indirectly to the earning…

Elve Corporation, Mumbai vs. ACIT 12(3), Mumbai

In the result, the assessee’s appeals are partly allowed for statistical purposes, and the Revenue’s appeal is partly allowed

ITA 4108/MUM/2012[2008-09]Status: DisposedITAT Mumbai20 Nov 2015AY 2008-09

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. Nos. 4108/Mum/2012 & 6279/Mum/2012 ("नधा"रण वष" / Assessment Years: 2008-09 & 2009-10) Elve Corporation Asst. Cit-12(3), बनाम/ Elve Chambers, Green Street, Aayakar Bhavan, Vs. Fort, Mumbai-400 001 Mumbai "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R ("नधा"रती/Assessee) (राज"व /Revenue) : & आयकर अपील सं./I.T.A. No. 6229/Mum/2012 ("नधा"रण वष" / Assessment Year: 2009-10) Asst. Cit-12(3), Elve Corporation बनाम/ Aayakar Bhavan, Elve Chambers, Green Street, Vs. Mumbai Fort, Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafe 4847 R (राज"व /Revenue) ("नधा"रती/Assessee) : राज"व क" ओर से/Revenue By : Shri M. C. Naniwadekar "नधा"रती क" ओर से / Assessee By : Shri Vivek Anand Perapurna सुनवाई क" तार"ख / : 21.08.2015 Date Of Hearing घोषणा क" तार"ख / : 20.11.2015 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: These Are Set Of Three Appeals For Two Consecutive Years, Being Assessment Years (A.Ys.) 2008-09 & 2009-10, By The Assessee & The Revenue Respectively

For Appellant: Shri Vivek Anand PerapurnaFor Respondent: Shri M. C. Naniwadekar
Section 143(3)Section 172Section 195Section 195(2)Section 250(6)Section 40

…o that one may not be required to even travel to the deeming provision of section 9, which in a way seeks to extend and to definition the scope of accrual by and through the concept of ‘business connection’. As explained in CIT vs. R. D. Aggarwal & Co. [1965] 56 ITR 20 (SC), which stands referred to in Toshoku Ltd. (supra), and continues to govern the field, business connection involves the relationship between the business carried on by a non-resident (outside taxable territories), which yields profits or gains, and some activity in the taxable territories which contributes directly or indirectly to the earning…

DCIT, New Delhi vs. M/S. Le Passage to India Tours & Travels (P) Ltd., New Delhi

Appeal is dismissed

ITA 659/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Sept 2015AY 2010-11

Bench: Smt. Diva Singh & Shri T.S. Kapoor

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Amindra Kumar, CIT (DR)
Section 234BSection 271(1)(c)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : “I” NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA No: 2491/Del/2014 & ITA No. 1529/Del/2015 Asstt. years 2009-10, 2010-11 Le Passage to India Tours & Travels vs. DCIT (P) Ltd. Circle – 4 (1) Hauz Khas New Delhi New Delhi (PAN AAACL8370K) (Appellant) (Respondent) ITA No: 1186/Del/2014 & ITA No. 659/Del/2015 Asstt. Years 2009-10, 2010-11 DCIT vs. Le Passage to India Tours & Travels Circle-15(2) (P) Ltd. New Delhi. E-29, Hauz Khas New Delhi (PAN AAACL8370K) (Appellant) (Respondent) Appellant by :…

DCIT, New Delhi vs. M/S. Le Passage to India Tours & Travels Pvt. Ltd., New Delhi

Appeal is dismissed

ITA 1186/DEL/2014[2009-10]Status: DisposedITAT Delhi29 Sept 2015AY 2009-10

Bench: Smt. Diva Singh & Shri T.S. Kapoor

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Amindra Kumar, CIT (DR)
Section 234BSection 271(1)(c)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : “I” NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA No: 2491/Del/2014 & ITA No. 1529/Del/2015 Asstt. years 2009-10, 2010-11 Le Passage to India Tours & Travels vs. DCIT (P) Ltd. Circle – 4 (1) Hauz Khas New Delhi New Delhi (PAN AAACL8370K) (Appellant) (Respondent) ITA No: 1186/Del/2014 & ITA No. 659/Del/2015 Asstt. Years 2009-10, 2010-11 DCIT vs. Le Passage to India Tours & Travels Circle-15(2) (P) Ltd. New Delhi. E-29, Hauz Khas New Delhi (PAN AAACL8370K) (Appellant) (Respondent) Appellant by :…

Commissioner of Income Tax (TDS) vs. M/s Country Club Inda Limited

ITTA/667/2014HC Telangana29 Jan 2015

Director of Income Tax (Intl. Tax.)-II

ITA/292/2014HC Delhi18 Sept 2014
Section 195Section 195(2)Section 9Section 9(1)Section 9(1)(i)

…rectly, through and from any business connection in India, or through or from any property in India etc. 10. What is meant by „business connection‟ has been interpreted by the Supreme Court in the case of CIT, Punjab versus R.D. Aggarwal and Co. [1965] 56 ITR 20 and subsequently in Barendra Prasad Ray versus ITO [1981] 129 ITR 295. We need not dwell on the said aspect in detail for several reasons, though Circular No. 23 dated 23rd July, 1969 issued by the Central Board of Direct Taxes would not be applicable as it stands withdrawn with effect from 22nd October, 2009 vide Circular No.7 of 2009. Firstl…

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

ITA - 735 / 2011HC Delhi05 Feb 2014

…ITA No. 735/2011+connected appeals Page 1 of 102 * IN THE HIGH COURT OF DELHI AT NEW DELHI + INCOME TAX APPEAL NO. 735/2011 Reserved on: 29th October, 2013 % Date of Decision: 5th February, 2014 DIRECTOR OF INCOME TAX ..... Appellant Through Mr. Sanjeev Sabharwal & Mr. N.P. Sahni, Sr. Standing Counsel. Versus M/S E FUNDS IT SOLUTION ..... Respondent Through Mr. S. Ganesh, Sr.…

Director of Income Tax vs. M/S E Funds It Solution

The appeals are disposed of

ITA/735/2011HC Delhi05 Feb 2014

…ITA No. 735/2011+connected appeals Page 1 of 102 * IN THE HIGH COURT OF DELHI AT NEW DELHI + INCOME TAX APPEAL NO. 735/2011 Reserved on: 29th October, 2013 % Date of Decision: 5th February, 2014 DIRECTOR OF INCOME TAX ..... Appellant Through Mr. Sanjeev Sabharwal & Mr. N.P. Sahni, Sr. Standing Counsel. Versus M/S E FUNDS IT SOLUTION ..... Respondent Through Mr. S. Ganesh, Sr.…

Ishikawajma-Harima Heavy Industries Ltd vs. Director of Income Tax, Mumbai

The appeal is allowed in part and to

C.A. No.-000009-000009 - 2007Supreme Court04 Jan 2007
For Respondent: Director of Income Tax, Mumbai
Section 241

…n 4-A(c)(b) of the Act." In Carborandum Co. v. Commissioner of Income-Tax, Madras [(1977) 108 ITR 335 : (1977) 2 SCC 862], this Court referring to its earlier decision in Commissioner of Income Tax, Punjab v. R..D. Aggarwal and Co.& Another [(1965) 56 ITR 20], opined : "15. On a plain reading of sub-sections (1) and (3) of Section 42 it would appear that income accruing or arising from any business connection in the taxable territories \027 even though the income may accrue or arise outside the taxable territories \027 will be deemed to be income accruing or arising in such territory provided ope…