CIT v. Standard Triumph Motor Co. Ltd.

119 ITR 573High Court1979#10098 most cited

What is CIT v. Standard Triumph Motor Co. Ltd. authority for?

For a non-resident, taxability is determined solely under Section 5(2)(b) of the Income Tax Act, which relates to accrual, and Section 5(2)(a) has no application. Receipt of income by a non-resident occurs when an Indian company credits their account.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2018 to 2025.

Also referred to as

Standard Triumph Motors Ltd · CIT v. Standard Triumph Motor Co. Ltd · 119 ITR 573 · Section 5(2)(a) · Section 5(2)(b) · non-resident taxability · accrual basis · receipt basis · income tax act

Sections most often in play

Section 10BSection 143(3)Section 147Section 148Section 1961Section 253(1)(d)Section 270ASection 92C

Issues it is cited on

section 5(2)(b)section 75section 5(2)functional analysissubstantive assessmentfar analysisprotective assessmentroyalty incomesection 153(1)computer softwarefees for technical servicestax treaty

Judgments citing CIT v. Standard Triumph Motor Co. Ltd.

Siemens Aktiengesellschaft, Mumbai vs. Asstt. CIT (International Taxation)-Circle-4(2)(1), Mumbai

In the result, grounds No

ITA 2259/MUM/2022[2018-19]Status: DisposedITAT Mumbai22 Sept 2025AY 2018-19

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 253(1)(d)Section 92C(3)

…per the India Germany DTAA. The issue before us is, whether the income of the assessee is to be taxed on receipt basis as against accrual basis. The ld. AO has relied upon the judgment of Hon'ble Madras High Court in the case of Standard Triumph Motors Ltd. (119 ITR 573) which has held that in case of non-resident, Section 5(2)(a) of the Income tax Act i.e., will have no application andtaxabilitywillbedeterminedonlyunderSection5(2)(b) of the Income Tax Act, i.e., by accrual. Subsequently, the Supreme Court in the case of Standard Triumph Motor Co Ltd. v. CIT [1993] 201 ITR 391 (SC) held that in the particular ca…

Siemens Aktiengesellschaft, Mumbai vs. Asstt. CIT (International Taxation)-Circle-4(2)(1), Mumbai

In the result, grounds No

ITA 1615/MUM/2022[2017-18]Status: DisposedITAT Mumbai22 Sept 2025AY 2017-18

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 253(1)(d)Section 92C(3)

…per the India Germany DTAA. The issue before us is, whether the income of the assessee is to be taxed on receipt basis as against accrual basis. The ld. AO has relied upon the judgment of Hon'ble Madras High Court in the case of Standard Triumph Motors Ltd. (119 ITR 573) which has held that in case of non-resident, Section 5(2)(a) of the Income tax Act i.e., will have no application andtaxabilitywillbedeterminedonlyunderSection5(2)(b) of the Income Tax Act, i.e., by accrual. Subsequently, the Supreme Court in the case of Standard Triumph Motor Co Ltd. v. CIT [1993] 201 ITR 391 (SC) held that in the particular ca…

Siemens Mobility Gmbh, Germany vs. Assistant Commissioner of Income Tax(International Tax), 4(2)(1), Mumbai

The appeal of the assessee is partly allowed

ITA 4713/MUM/2023[AY 2021-22]Status: DisposedITAT Mumbai27 Feb 2025

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Nitesh Josh a/w Bhavin
Section 143(3)Section 234ASection 270A

…s per the India Germany DTAA. The issue before us is, whether the income of the assessee is to be taxed on receipt basis as against accrual basis. The ld. AO has relied upon the judgment of Hon'ble Madras High Court in the case of Standard Triumph Motors Ltd.(119 ITR 573) which has held that in case of non- resident, Section 5(2)(a) of the Income tax Act i.e., will have no application and taxability will be determined only under Section5(2)(b) of the Income Tax Act, i.e., by accrual. Subsequently, the Supreme Court in the case of Standard Triumph Motor Co Ltd. v. CIT[1993] 201 ITR 391 (SC) held that in the partic…

Siemens Aktiengesellschaft, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 2153/MUM/2014[2009-10]Status: DisposedITAT Mumbai07 Jun 2024AY 2009-10

Bench: SHRI B R BASKARAN (Accountant Member), SHRI AMIT SHUKLA (Judicial Member)

Section 144CSection 144C(5)Section 153Section 9(1)(vi)

…per the India Germany DTAA. The issue before us is, whether the income of the assessee is to be taxed on receipt basis as against accrual basis. The ld. AO has relied upon the judgment of Hon'ble Madras High Court in the case of Standard Triumph Motors Ltd. (119 ITR 573) which has held that in case of non-resident, Section 5(2)(a) of the Income tax Act i.e., will have no application and taxability will be determined only under Section 5(2)(b) of the Income Tax Act, i.e., by accrual. Subsequently, the Supreme Court in the case of Standard Triumph Motor Co Ltd. v. CIT [1993] 201 ITR 391 (SC) held that in the parti…

Faber Castell Aktiengesellschaft, Germany vs. ACIT, International Taxation, Circle-1(3)(1), New Delhi

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

ITA 7619/DEL/2017[2014-15]Status: DisposedITAT Delhi09 Dec 2021AY 2014-15

Bench: Shri N.K. Billaiya & Shri Challa Nagendra Prasad

For Appellant: Shri Nishant Thakkar, AdvFor Respondent: Ms. Shashi Kajle, Sr. DR

…but the same is not paid, the taxability under Article 12 in the source country does not come into play. 6.3 As against aforesaid case, the Id. senior DR relied on the decision of Madras High Court in the case of CIT v. Standard Triumph Motor Co. Ltd. [1979] 119 ITR 573 . The question before the Court was-whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that royalty amounts should be assessed on cash basis for assessment years 1967-68 to 1969-70 if the books and balance-sheet of such receipts are found to be maintained on cash basis and in directing fresh as…

M/S. Abb Ag, Bangalore vs. Deputy Commissioner of Income Tax (International Taxation), Circle- 1(1), Bangalore

In the result, the appeal filed by the assessee is treated as allowed

ITA 1444/BANG/2019[2014-15]Status: DisposedITAT Bangalore24 Nov 2020AY 2014-15

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranit(It)A No.1444/Bang/2019 Assessment Year: 2014-15

For Appellant: Shri Nageswar Rao, A.RFor Respondent: Smt. R. Premi, D.R
Section 9(1)(vii)

…s of FTS is taxable on receipt basis or accrual basis. For the sake of convenience we extract below the operative portion of the order:- “3. The AO, inter alia, relying on the Madras High Court decision in the case of CIT vs. Standard Triumph Co. Ltd. (1979) 119 ITR 573 (Mad), had held that the income by way of fees for technical services was liable to be taxed on accrual basis and not on receipt basis. When the matter was carried in Appeal, the CIT(A) relying on art. VIIIA of the Agreement for the IT(IT)A No.1444/Bang/2019 M/s. ABB AG, Bangalore Page 5 of 7 Avoidance of Double Income-tax between India and the…

ITO, New Delhi vs. M/S. Paragon Xt, New Delhi

In the result appeal of the revenue is dismissed

ITA 363/DEL/2015[2010-11]Status: DisposedITAT Delhi14 Mar 2019AY 2010-11

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year: 2010-11

For Appellant: NoneFor Respondent: Shri Surender Pal, Sr. DR
Section 194C

…Dooms India Ltd. [1993J 200 ITR 496 (Gauhati) 12. CIT V. Guttoffnungashutto Sterkrado, [1992] 197 ITR 66 (Orissa), CIT v. Kataria Road Lines, [2009] 316 ITR 115 (Raj.) 5.9 The Hon'ble Madras High Court in the case of CIT v. Standard Triumph Motor Co. Ltd.; 119 ITR 573 has held that the provisions of the section 145 are only machinery provisions and it cannot override charging provision. The section 145(1) is only an enabling provision to effectuate the charge. The section cannot be used for destroying the charge to tax. It is only a machinery provision and cannot qualify the charging section so as to make the…

M/S Subash Chander Aggarwal, Jalandhar vs. Assistant Commissioner of Income Tax Range II, Jalandhar

In the result, the assessee’s appeals are dismissed

ITA 739/ASR/2017[2010-2011]Status: DisposedITAT Amritsar29 Oct 2018AY 2010-2011

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi. T. A. Nos. 738 & 739/(Asr)/2017 Assessment Years: 2009-10 & 2010-11

For Appellant: Sh. J. S. Bhasin (Adv.)For Respondent: Sh. Gautam Deb (D.R.)
Section 133ASection 143(3)

…e charge. It cannot qualify the charging section, so as to make the latter otiose, nor can be given an overriding effect so as to defeat the charge (CIT v. Standard Triumph Motor Co. (AYs 2009-10 & 2010-11) Subhash Chander Aggarwal v. Asstt. CIT Ltd. [1979] 119 ITR 573 (Mad)). The Revenue is entitled to judge the accounts of the assessee each year on its merits. There is no question of estoppel in such a case (Jamna Das Rameshwar Das v. CIT [1952] 21 ITR 109 (Punj)). Keeping of a stock register is of great importance because that is a means of verifying the assessee’s accounts by having a ‘quantitative tally’.…

M/S. Sbash Chander Aggarwal, Jalandhar vs. Assistant Commisioner of Income Tax Range -II, Jalandhar

In the result, the assessee’s appeals are dismissed

ITA 738/ASR/2017[2009-10]Status: DisposedITAT Amritsar29 Oct 2018AY 2009-10

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi. T. A. Nos. 738 & 739/(Asr)/2017 Assessment Years: 2009-10 & 2010-11

For Appellant: Sh. J. S. Bhasin (Adv.)For Respondent: Sh. Gautam Deb (D.R.)
Section 133ASection 143(3)

…e charge. It cannot qualify the charging section, so as to make the latter otiose, nor can be given an overriding effect so as to defeat the charge (CIT v. Standard Triumph Motor Co. (AYs 2009-10 & 2010-11) Subhash Chander Aggarwal v. Asstt. CIT Ltd. [1979] 119 ITR 573 (Mad)). The Revenue is entitled to judge the accounts of the assessee each year on its merits. There is no question of estoppel in such a case (Jamna Das Rameshwar Das v. CIT [1952] 21 ITR 109 (Punj)). Keeping of a stock register is of great importance because that is a means of verifying the assessee’s accounts by having a ‘quantitative tally’.…

ACIT, New Delhi vs. Sh. Sunil Chopra, New Delhi

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

ITA 5502/DEL/2014[2010-11]Status: DisposedITAT Delhi03 Jul 2018AY 2010-11

Bench: Shri H.S. Sidhu & Shri N.K. Billaiya[Assessment Year: 2010-11] The A.C.I.T. Vs. Shri Sunil Chopra 14A/57, 1St Floor, Wea Circle 33(1) New Delhi Karol Bagh, New Delhi

For Appellant: Dr. Rakesh GuptaFor Respondent: Shri S.K. Tewari – Sr DR
Section 145Section 194CSection 40

…own as receivable in the earlier year has to be included in the year under consideration on receipt basis. This exercise would be tax neutral. 7. Drawing support from the judgment of the Hon'ble Madras High Court in the case of Standard Triumph Motor Co. Ltd 119 ITR 573 wherein it has been held that the provisions of section 145 are only machinery provisions and it cannot override the charging provision and further drawing support from the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Excel Industries Ltd 358 ITR 295 order dated 09.10.2013, the CIT(A) directed the AO to delete the disallowance of…

CIT v. Standard Triumph Motor Co. Ltd. (119 ITR 573) — Cited in 10 Judgments | BharatTax