CIT v. Toshoka Ltd.

315 ITR 374Reported decision2009#8971 most cited

What is CIT v. Toshoka Ltd. authority for?

Commission earned by a non-resident foreign payee for services rendered outside India in connection with procuring export orders is not deemed to be income arising in India.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2024.

Also referred to as

CIT v. Toshoka Ltd. · commission earned by non-resident · services rendered outside India · income arising in India · export orders · Article 7 DTAA · business profits

Issues it is cited on

section 40(a)(1)section 248section 9(1)(vii)(b)section 195(1)section 195(2)fees for included servicesinterest free advancesbusiness connectionsection 9(1)(vi)section 9(1)(vii)section 40(a)(i)enduring benefit

Judgments citing CIT v. Toshoka Ltd.

M/S Model Exim, Kanpur vs. The Principal Commissioner of Income Tax (Central), Kanpur

In the result, the appeal of the assessee is allowed

ITA 137/LKW/2022[2011-12]Status: DisposedITAT Lucknow05 Nov 2024AY 2011-12

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguriam/S. Model Exim Pcit (Central) V. 624-C, Defence Colony, 7/81-B, Tilak Nagar, Jajmau, Kanpur-208010. Kanpur. Pan:Aadfm6163H (Appellant) (Respondent) Appellant By: Shri Swaran Singh, C.A. Respondent By: Smt Namita S. Pandey, Cit(Dr) Date Of Hearing: 29 10 2024 Date Of Pronouncement: 05 11 2024 O R D E R

For Appellant: Shri Swaran Singh, C.AFor Respondent: Smt Namita S. Pandey, CIT(DR)
Section 139Section 153CSection 153DSection 263Section 263(1)

…shoku Ltd (125 ITR 525 SC) 2. CIT Vs. Eon Technology P Ltd (ITA. No.1167 dated 8th Nov, 2011 Delhi HC) 3. CIT Vs. Sheraton International Inc (2009) 313 ITR 267 4. CIT Vs. Indopel Garments (P)Ltd Vs. DCIT (2001 72 TTJ Mad 702) 5. Spahi Projects (P) Ltd, In Re (315 ITR 374 AAR. 6. Ind Telesoft P Ltd., (543 of 2001) 7. DCIT Vs. Ardeshi B Cursetjee & Sons Ltd (2008 115 TTJ Mumbai 916) 8. JCIT Vs. George Williamson (Assam) Ltd., (2009 116 ITD 328) 9. DCIT Vs. Sanjiv Gupta (2011 135 TTJ Lucknow 641) 10. TVS Motor Company Vs. ACIT (ITA. Nos. 697 & 757/Mds/2009) In conclusion it is clear from the reading of the provisio…

Rane Engine Valve Ltd, Chennai vs. DCIT Corporate Circle-5(1), Chennai

In the result, the appeals filed by the assessee for assessment year 2012-13 in ITA No

ITA 885/CHNY/2020[2015-16]Status: DisposedITAT Chennai03 Jul 2024AY 2015-16

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Suresh, JCIT
Section 143(3)

…id. The payments involved are purely business profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

Rane Engine Valve Limited, Chennai vs. DCIT Corporate Circle 5(1), Chennai

In the result, the appeals filed by the assessee for assessment year 2012-13 in ITA No

ITA 2815/CHNY/2018[2014-15]Status: DisposedITAT Chennai03 Jul 2024AY 2014-15

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Suresh, JCIT
Section 143(3)

…id. The payments involved are purely business profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

Rane Engine Valve Limited, Chennai vs. DCIT Corporate Circle 5 (1), Chennai

In the result, the appeals filed by the assessee for assessment year 2012-13 in ITA No

ITA 1477/CHNY/2018[2013-14]Status: DisposedITAT Chennai03 Jul 2024AY 2013-14

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Suresh, JCIT
Section 143(3)

…id. The payments involved are purely business profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

Rane Engine Valves Limited, Chennai vs. DCIT, Chennai

In the result, the appeals filed by the assessee for assessment year 2012-13 in ITA No

ITA 1498/CHNY/2017[2012-13]Status: DisposedITAT Chennai03 Jul 2024AY 2012-13

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Suresh, JCIT
Section 143(3)

…id. The payments involved are purely business profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

Rane Engine Valves Limited, Chennai vs. DCIT, Chennai

In the result, the appeals filed by the assessee for assessment year 2012-13 in ITA No

ITA 1497/CHNY/2017[2011-12]Status: DisposedITAT Chennai03 Jul 2024AY 2011-12

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Shri G. Suresh, JCIT
Section 143(3)

…id. The payments involved are purely business profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

ACIT, New Delhi vs. Ishman International, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 5880/DEL/2016[2010-11]Status: DisposedITAT Delhi22 Aug 2019AY 2010-11

Bench: Ms. Suchitra Kamble & Sh. Prashant Maharishiassessment Year : 2010-11

Section 143(1)Section 143(2)Section 195Section 40Section 9

…a. It may be noted that for invoking Section 9(1)(i), existence of business connection/Permanent Establishment is a sine qua non and inevitable. It also appears that in the aforesaid ruling, the earlier ruling of the Hon'ble AAR in the case of Spahi Projects, 315 ITR 374 has not been considered and also the decision of the Hon’ble Supreme Court in the case of CIT vs. Toshuku, 125 ITR 525 has also been not considered, and therefore the case of SKF Boilers and Driers P. Ltd. is to be treated as per incuriam. Therefore, the finding of the AO that right to receive commission arises in India when the order is executed…

ITO, New Delhi vs. Sh. Kulbeer Singh, New Delhi

ITA 5204/DEL/2014[2010-11]Status: DisposedITAT Delhi03 Oct 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishiito, Vs. Kulbeer Singh, Ward-26(1), H-432, Vikas Puri, New Delhi New Delhi Pan: Amqps5847P (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Shri Amit Jain, Sr. DR
Section 143Section 195Section 197Section 40Section 9

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITO, Vs. Kulbeer Singh, Ward-26(1), H-432, Vikas Puri, New Delhi New Delhi PAN: AMQPS5847P (Appellant) (Respondent) Revenue by : Shri Amit Jain, Sr. DR Assessee by: None Date of Hearing 25/07/2018 Date of pronouncement 03/10/2018 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the Income Tax Officer, Ward – 26 (1), New Delhi against the order of The Commissioner Of Income Tax Appeals – XXIV , New Delhi dated 3/7/2014 for AY 2010 – 11 where the only i…

ACIT 27(3), Navi Mumbai vs. Ramesh P. Singh, Mumbai

In the result, appeal filed by the revenue for assessment year 2012-2013

ITA 974/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Shri R.C. Sharma (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-13 The A.C.I.T. 27(3), Shri Ramesh P. Singh, 4Th Floor, Tower No. 6, Prop. Of M/S Aditya Investment Vashi Railway Station Complex & Exim Trade (Co.), Vashi, Vs. Plot No. 23, Pallvi Building, Navi Mumbai Maneklal Estate, Ghatkopar (E), Mumbai - 400086 Pan: Aagps2739C (Appellant) (Respondent) Revenue By : Shri Chaitanya Anjaria (Dr) Assessee By : None Date Of Hearing: 12/09/2018 Date Of Pronouncement: 28/09/2018

For Appellant: NoneFor Respondent: Shri Chaitanya Anjaria (DR)
Section 143Section 143(2)Section 195Section 40Section 5(2)(b)Section 7Section 9(1)(i)

…perations carried out in India and if no operations are carried out in India, there would be no income deemed to accrue or arise in India and no tax was to be deducted under s. 195 out of remittances made to foreign concern. 5. Spahi Projects (P) Ltd., IN RE (315 ITR 374 AAR) where the AAR held that commission for services rendered in connection with arranging sales abroad (in South Africa) cannot be brought within the net of income-tax in India as there was no fixed place of business in India for the South African entity nor does the SA entity enter into any contracts in India. 6. Ind Telesoft P. Ltd., IN RE (54…

Commissioner of Income Tax-IV vs. Hero Motocorp Limited

ITA/923/2015HC Delhi08 May 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 195Section 260ASection 40

…of this Court in Commissioner of Income Tax v. Shiv Raj Gupta (2015) 372 ITR 337 (Del). He pointed out that the reliance placed by the ITAT on the decision of the Authority for Advance Ruling in the case of SPAHI Project P. Ltd. v. CIT-Central-III (2009) 315 ITR 374 (AAR) was misplaced as it was distinguishable on facts. Submissions on behalf of the Assessee 14. Mr. Ajay Vohra, learned Senior counsel for the Assessee contested the above submissions. He referred in detail to the clauses of both the LTAA and the EA and submitted that they were two separate agreements. He pointed out that it was only af…

DCIT, New Delhi vs. M/S. Mira Exim Ltd., New Delhi

In the result, the Appeal of the Revenue and the Cross Objection of the assessee are dismissed

ITA 125/DEL/2014[2009-10]Status: DisposedITAT Delhi24 Apr 2017AY 2009-10

Bench: Shri I.C. Sudhir & Shri B.P. Jainassessment Year 2009-10 Dcit, Vs. Mira Exim Ltd. Circle-6(1), Room No.413, 523-24, World Trade C.R. Building I.P. Estate, Centre, New Delhi. Barakhamba Road, New Delhi. Pan: Aaacm 2066M (Appellant) (Respondent)

For Respondent: S/Shri H.K. Chaudhary CIT-DR and Rajesh Kumar, Sr.D.R
Section 40Section 9Section 9(1)(vii)

…profits covered under Article-7 of the DTAA with Germany. The assessee placed reliance on judicial ITA No.125/Del/2014 & CO No.256/Del/2014 10 pronouncement as below :- "In the case of CIT vs. Toshoka Ltd. 125 ITR 525 (SC) and Spahi Projects P. Ltd., In re 315 ITR 374 (AAR) , it has been held that amount of commission earned by nonresident foreign payees for rendering service outside India in connection with procuring export orders could not be deemed to be income arising in India." In the case of Cushman & Wakefield (2008) 305 ITR 208, it was held that there was no expertise or know-how which was made availa…

DCIT, New Delhi vs. Sh. Rakesh Anand, New Delhi

In the result, revenue’s appeal is dismissed

ITA 4453/DEL/2013[2010-11]Status: DisposedITAT Delhi27 May 2016AY 2010-11

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg:Asstt. Yr: 2010-11 Dcit Circle 30(1), Vs. Sh. Rakesh Anand, New Delhi. 3791, Darya Ganj, New Delhi-110002. Pan: Adapa 4699 L ( Appellant ) (Respondent) Appellant By : Ms. Rakhi Bimal Sr Dr. Respondent By : Shri Jmesh Kuntal Ca Date Of Hearing : 11/05/2016. Date Of Order : 27/05/2016. O R D E R Per S.V. Mehrotra, A.M:

For Appellant: Ms. Rakhi Bimal Sr DRFor Respondent: Shri Jmesh Kuntal CA
Section 194JSection 195Section 40Section 9Section 9(1)(vii)

…e consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head 'salaries.' Authority on Advance Ruling in the case of Saphi Projects Pvt Ltd. 315 ITR 374(AAR) has held that there could possibly be no controversy that the agent would not be rendering services of a managerial, technical or consultancy nature and therefore the liability of tax cannot be fastened on it by invoking the provisions dealing with fee for technical services. On the basis of above submissions and judgments it may be conclude…

CIT v. Toshoka Ltd. (315 ITR 374) — Cited in 12 Judgments | BharatTax