CIT v. Siemens Aktiongesellschaft

Zoetis Pharmaceuticals Research P. Ltd., Mumbai vs. DCIT RG 8(2), Mumbai

In the result, appeal filed by the assessee is partly allowed for statistical

Bench: Shri Saktijit Dey () & Shri G Manjunatha ()

…provisions of section 194C / 194J; therefore, there is no obligation on the part of the assessee to deduct TDS. We find force in the arguments of the assessee for the reason that the Hon’ble Bombay High Court in the case of CIT vs Siemens Aktiongesellschaft 310 ITR 320 (Bom) has held that payment by way of reimbursement of expenditure incurred on behalf of payer is not income chargeable to tax in the hands of the payee. The Hon’ble Supreme Court in the case of GE India Technology Centre (P) Ltd vs CIT (supra) 12 observed that if the payment does not contain the element of income, the payer cannot be made liab…

Shell Information Technology International Bv, Mumbai vs. DCIT (It) 4(1)(2), Mumbai

In the result, both the appeals of assessee are allowed

Bench: Sri Mahavir Singh, Jm & Sri G. Manjunatha, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI G. MANJUNATHA, AM ITA No. 1203/Mum/2015 (A.Y. 2010-11) M/s Shell Information Deputy Director of Income Technology Internatinal BV, Tax C/o BSR & Co. LLP, (International Taxation)-2(1) 1st Floor, Lodha Excelus, Vs. Room No. 120, Scindia Apollo Mills Compound, N.M. House, Ballard Estate, N.M. Joshi Marg, Mahalaxmi Road, Mumbai-400 038 Mumbai-400 011 Appellant .. Respondent PAN No. AAICS9091A Assessee by : Niraj Sheth, AR Revenue by : Samuel Darse, DR Date of hearing: 16 -11-2017 Date of pronouncement : 16-11-2017 O R D…

Shell Information Technology International Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, both the appeals of assessee are allowed

Bench: Sri Mahavir Singh, Jm & Sri G. Manjunatha, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI G. MANJUNATHA, AM ITA No. 1203/Mum/2015 (A.Y. 2010-11) M/s Shell Information Deputy Director of Income Technology Internatinal BV, Tax C/o BSR & Co. LLP, (International Taxation)-2(1) 1st Floor, Lodha Excelus, Vs. Room No. 120, Scindia Apollo Mills Compound, N.M. House, Ballard Estate, N.M. Joshi Marg, Mahalaxmi Road, Mumbai-400 038 Mumbai-400 011 Appellant .. Respondent PAN No. AAICS9091A Assessee by : Niraj Sheth, AR Revenue by : Samuel Darse, DR Date of hearing: 16 -11-2017 Date of pronouncement : 16-11-2017 O R D…

Bharat Bijlee Ltd, Mumbai vs. Asst DIT (It) 3(2), Mumbai

Bench: S/Shri Rajendra, A.M. & Sandeep Gosain,J.M. आयकर अपील सं आयकर अपील सं././././Ita No. 5326-5329/Mum/2014, आयकर अपील सं आयकर अपील सं िनधा" िनधा"रण वष" िनधा" िनधा" रण वष" रण वष" /Assessment Year: Not Applicable रण वष" Bharat Bijlee Ltd. Asstt. Director Income Tax-(Intl. 6Th Floor Eectric Mansion, Taxation)-3(2) Appasaheb Marathe Marg, Prabhadevi Vs. 1St Floor, Room No.132, Scindia House Mumbai-400 025. N.M. Marg, Ballard Pier Mumbai-400 038. Pan: Aaacb 2900 K (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Rajguru M.V. Assessee By: S/Shri Ronak Doshi/Hardik Nirmal सुनवाई क" तारीख / Date Of Hearing: 20/09/2017 घोषणा क" तारीख / Date Of Pronouncement: 03.11.2017 आयकर आयकर अिधिनयम आयकर आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)के अ"तग"त आदेश धारा के अ"तग"त आदेश के अ"तग"त आदेश के अ"तग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य लेखा सद"य,राजे"" के अनुसार लेखा सद"य लेखा सद"य राजे"" के अनुसार राजे"" के अनुसार /Per Rajendra,Am: राजे"" के अनुसार Challenging The Orders,Dated 21/2/2014 Of The Cit(A)-10,Mumbai,The Assessee Has Filed The Above Mentioned Appeals.As The Issue Involved In These Appeals Is Identical,So, We Are Adjudi -Cating Them Together.Assessee, A Public Limited Company, Is Engaged In Manufacturing Of Electric Motors,Transformers, Gearless Machines For Elevators & Marketing Of Drives & Maintenance Products.

…ld not be read into the DTAA. He referred to the cases of Ericsson A.B.(343ITR470)(Del);Alcatel Lucent USA Inc.(ITA / 7299/Mum/ 2010;Antwerp Diamond Bank NV (ITA/8480/Mum/ 2011);TII Team Telecom International Pvt.Ltd.(47 SOT 76)and Siemens Aktiongesellschaft (310 ITR 320). The Departmental Representative (DR) supported the order of the FAA. 2.3.We have heard the rival submissions and perused the material available on record.We find that the assessee had approached the AO to issue a certificate u/s.195 of the Act for making remittance to ISL without deducting tax at source,that the AO held that payment to be made…

ITO 27(3)(5), Navi Mumbai vs. Vijay S. Poojari, Mumbai

In the result appeals of the Revenue are dismissed

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

…ndividual, he is not liable to tax audit u/s. 44AB. The provisions of section 194C are not applicable. He has also relied on following case laws to support his stand that reimbursement of expenses are not income and therefore not taxable. (1) CIT Vs. Siemens (310 ITR 320 Bom) (2) CIT Vs. Industrial Engineering Projects Pvt. Ltd. (202 ITR 1004 Del) (3) CIT Vs. Dunlop Rubber Co.Ltd. (142 ITR 493 (Cal) (4) Mahindra 86 Mahindra (313 ITR) (SB)(Mum) 6 ITA.No.760 & 761/MUM/2016) Vijay S Poojari 11. It is also stated by the appellant that the Hon'ble Delhi High Court in CIT Vs Cargo Linkers (218 CTR 695) has held that C…

Pfizer Products India P.Ltd, Mumbai vs. Asst CIT 10(3)(2), Mumbai

The appeal of the assessee is partly allowed, that of the Revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood: A.Y : 2009-10

…no justification to invoke Sec. 40(a)(ia) of the Act in the context of payment of Rs.14,51,77,000/- made to M/s. Pfizer Ltd. Notably, the CIT(A) also referred to the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Siemens Aktiongesellschaft, 310 ITR 320 (Bom.) as well as the judgment of the Hon'ble Delhi High Court in the case of CIT vs Industrial Engineering Projects, 202 ITR 1014 (Delhi) in coming to his decision to delete the addition. Against such a decision of the CIT(A), Revenue is in appeal before us. M/s. Pfizer Products India Pvt. Ltd. 17. Before us, the ld. DR contended that the arran…

Asst CIT 10(3)(2), Mumbai vs. Pfizer Products (I) P.Ltd, Mumbai

The appeal of the assessee is partly allowed, that of the Revenue is dismissed

Bench: Shri G.S. Pannu & Shri Ravish Sood: A.Y : 2009-10

…no justification to invoke Sec. 40(a)(ia) of the Act in the context of payment of Rs.14,51,77,000/- made to M/s. Pfizer Ltd. Notably, the CIT(A) also referred to the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Siemens Aktiongesellschaft, 310 ITR 320 (Bom.) as well as the judgment of the Hon'ble Delhi High Court in the case of CIT vs Industrial Engineering Projects, 202 ITR 1014 (Delhi) in coming to his decision to delete the addition. Against such a decision of the CIT(A), Revenue is in appeal before us. M/s. Pfizer Products India Pvt. Ltd. 17. Before us, the ld. DR contended that the arran…

Allcatel Us International Marketing Inc. ( Now Known As Alcatel Lucent Usa Inc.), Mumbai vs. DDIT (It) 1(1), Mumbai

The appeal of the AO stands dismissed

…आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण, मुंबई मुंबई “ एल एल” खंडपीठ खंडपीठ आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण मुंबई मुंबई एल एल खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“L”Bench Mumbai सव"ी सव"ी राजे"" राजे"",लेखा लेखा सद"य सद"य एवं एवं राम राम लाल लाल नेगी नेगी, "याियक "याियक सद "य सव"ी सव"ी राजे"" राजे"" लेखा लेखा सद"य सद"य एवं एवं राम राम लाल लाल नेगी नेगी "याियक "याियक सद सद"य सद "य "य Before S/Shri Rajendra,Accountant Member and Ram Lal Negi,Judicial Member आयकर अपील अपील संसंसंसं./I.T.A./7299/Mum/2010, िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2005-06 आयकर आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष…

National Stock Exchange of India Ltd, Mumbai vs. DDIT (It) RG 4(2), Mumbai

In the result, assessee’s appeal stands allowed

Bench: Shri Shamim Yahya & Shri Ravish Sood

…to the DTAA or not has to be considered on the anvil of ambulatory approach to interpretation of treaty, as against static approach adopted by the Hon’ble Delhi High Court. He further submitted that Hon’ble Bombay High Court in the case of CIT vs. Siemens AG, 310 ITR 320 has approved the ambulatory approach. 12 National Stock Exchange of India Ltd, ITA no.7735/Mum./2011 Ld. DR further submitted that eminent author Klaus vogel in his commentary has also supported ambulatory approach. According to this approach, law in force as per the domestic law would be law as it stands on the date of application of Treaty. A…

DCIT RG 8(1), Mumbai vs. Aditya Birla Money Insurance Advisory Services Ltd, Mumbai

…आयकर अपीलीय अिधकरण यकर अपीलीय अिधकरण यकर अपीलीय अिधकरण, , , , मुंबई यकर अपीलीय अिधकरण मुंबई मुंबई “ऐ ” ” ” ” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal “A”Bench Mumbai सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/Shri Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं./I.T.A./2252 /Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" DCIT , Range-8(1) M/s. Aditya Birla Money Insurance Room No.260A, 2nd Floor Advisory Services Ltd. Aayakar Bhavan, M.K. Road One Indiabulls Centre Tower 1,…

Shell Information Technology International Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, the Revenue’s appeals for A

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

…ambit of royalty. Such an amendment has to be read into the Treaty, because the scope of definition and meaning of ‘royalty’ under the Act and DTAA are by and large same. In support, he strongly relied upon the decision of CIT vs. Siemens Aktiongesellschaft, 310 ITR 320; and Vaicom 18 Media Private Ltd. vs. ADIT (2014) 162 TTJ 336. He gave a small write- up on this aspect, which for the sake of ready reference is reproduced below: 1. On the issue whether the Amendments/Explanations 18 Shell International Techonology International BV. inserted in the IncomeTax Act can be read into the DTAA or not, in my most r…

DDIT (It) 2(1), Mumbai vs. Shell Information Technology International Bv, Mumbai

In the result, the Revenue’s appeals for A

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

…ambit of royalty. Such an amendment has to be read into the Treaty, because the scope of definition and meaning of ‘royalty’ under the Act and DTAA are by and large same. In support, he strongly relied upon the decision of CIT vs. Siemens Aktiongesellschaft, 310 ITR 320; and Vaicom 18 Media Private Ltd. vs. ADIT (2014) 162 TTJ 336. He gave a small write- up on this aspect, which for the sake of ready reference is reproduced below: 1. On the issue whether the Amendments/Explanations 18 Shell International Techonology International BV. inserted in the IncomeTax Act can be read into the DTAA or not, in my most r…

DDIT (It)-2(1), Mumbai vs. Shell Information Technology International Bv, Mumbai

In the result, the Revenue’s appeals for A

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

…ambit of royalty. Such an amendment has to be read into the Treaty, because the scope of definition and meaning of ‘royalty’ under the Act and DTAA are by and large same. In support, he strongly relied upon the decision of CIT vs. Siemens Aktiongesellschaft, 310 ITR 320; and Vaicom 18 Media Private Ltd. vs. ADIT (2014) 162 TTJ 336. He gave a small write- up on this aspect, which for the sake of ready reference is reproduced below: 1. On the issue whether the Amendments/Explanations 18 Shell International Techonology International BV. inserted in the IncomeTax Act can be read into the DTAA or not, in my most r…

ITO (TDS) Ltu, Mumbai vs. Reliance Industreis Ltd, Mumbai

Bench: Shri B.R. Baskaran (Am)& C.N. Prasad (Jm)

…tion 4‘ was added to section 9(1)(vi) by the Finance Act 2012 with retrospective effect from 1.6.1976 to provide that all consideration for user of software shall be assessable as royalty, the definition in the DTAA has been left unchanged. That in Siemens AG 310 ITR 320 (Bom), it was held that amendments cannot be read into the treaty. As the assessee has opted to be assessed by the DTAA, the consideration cannot be assessed as royalty despite the retrospective amendments to the Act. The relevant findings of the Hon‘ble Delhi High Court as given in para 23 of the said decision, for the sake of convenience are re…

Reliance Industries Ltd, Mumbai vs. ITO (TDS) (Ltu), Mumbai

Bench: Shri B.R. Baskaran (Am)& C.N. Prasad (Jm)

…tion 4‘ was added to section 9(1)(vi) by the Finance Act 2012 with retrospective effect from 1.6.1976 to provide that all consideration for user of software shall be assessable as royalty, the definition in the DTAA has been left unchanged. That in Siemens AG 310 ITR 320 (Bom), it was held that amendments cannot be read into the treaty. As the assessee has opted to be assessed by the DTAA, the consideration cannot be assessed as royalty despite the retrospective amendments to the Act. The relevant findings of the Hon‘ble Delhi High Court as given in para 23 of the said decision, for the sake of convenience are re…

Red Chillies Entertainment P. Ltd, Mumbai vs. DCIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

…Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, the provisions of the DTAA would prevail. For Article 12 of Singapore - India DTAA to apply, technical 5. knowledge, experience, skill, know-how or process needs to be 'made available'. Generally speaking, technology would be considered 'made availab…

Red Chillies Entertainment P. Ltd, Mumbai vs. ACIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

…Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, the provisions of the DTAA would prevail. For Article 12 of Singapore - India DTAA to apply, technical 5. knowledge, experience, skill, know-how or process needs to be 'made available'. Generally speaking, technology would be considered 'made availab…

Red Chillies Entertaiment P.Ltd, Mumbai vs. DCIT (TDS) 3(2), Mumbai

In the result, all the appeals are partly allowed in terms of our directions contained in the orders passed in the aforesaid appeals

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ()

…Pvt. Ltd. [228 ITR 463 (SC), 20 ITA 6655-6657/Mum/2014 ITA 92 & 93/Mum/23015 K.P. Varghese v. ITO 131 ITR 597 (SC) and UOl v. Azadi Bachao Andolan 263 ITR 706 (SC). Hon'ble Jurisdictional High Court in the case of CIT v. Siemens 4. Aktiongesellschaft [20091 310 ITR 320 (Born) held that where the provisions of the DTAA are more beneficial than provisions of the Act, the provisions of the DTAA would prevail. For Article 12 of Singapore - India DTAA to apply, technical 5. knowledge, experience, skill, know-how or process needs to be 'made available'. Generally speaking, technology would be considered 'made availab…