Commissioner of Income Tax v. Vijay Ship Breaking Corporation

261 ITR 113High Court2003#10831 most cited

What is Commissioner of Income Tax v. Vijay Ship Breaking Corporation authority for?

Interest income payable by a resident to a non-resident is deemed to accrue or arise in India and is taxable if it is not for the purpose of carrying on business outside India or earning income from a source outside India. This is based on the interpretation of Section 9(1)(v)(b), read with Sections 5(2) and 4(1)(2).

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2014 to 2024.

Also referred to as

Commissioner of Income Tax v. Vijay Ship Breaking Corporation · Section 9(1)(v)(b) · Section 5(2) · Section 4(1)(2) · interest income · resident to non-resident · accrual of income in India · taxable income

Also reported as

129 Taxmann 120

Issues it is cited on

section 9(1)(v)section 10(15)business connectionsection 40(a)(i)section 195section 9(1)section 40(a)non-residentsection 19double taxationsection 40section 10

Judgments citing Commissioner of Income Tax v. Vijay Ship Breaking Corporation

Eximcorp India (P) Ltd., Kolkata vs. ACIT, Cir-5(2), Kolkata.

In the result, the appeal of the assessee is dismissed

ITA 702/KOL/2023[2016-17]Status: DisposedITAT Kolkata05 Aug 2024AY 2016-17

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 115JSection 195Section 195(1)Section 2Section 40

…here after detailed analysis and citing of a number of judicial pronouncements on the subject the Hon'ble Court was pleased to set aside the order of this Tribunal. There the findings of Hon’ble ITAT were reversed. Some portions from the High Court judgement (261 ITR 113- Gujarat) deserve to be extracted: “The provisions of section 9(1)(v)(b), read with section 5(2) and section 4(1)(2) leave no room for doubt that the income payable by way of interest by a resident to a non-resident which is not payable for the purpose of carrying on of the business of such resident outside India or for earning income from any s…

Eximcorp India Private Limited., Kolkata vs. ACIT, Cir-5(2), Kolkata.

In the result, the appeal of the assessee is dismissed

ITA 701/KOL/2023[2015-16]Status: DisposedITAT Kolkata05 Aug 2024AY 2015-16

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 115JSection 195Section 195(1)Section 2Section 40

…here after detailed analysis and citing of a number of judicial pronouncements on the subject the Hon'ble Court was pleased to set aside the order of this Tribunal. There the findings of Hon’ble ITAT were reversed. Some portions from the High Court judgement (261 ITR 113- Gujarat) deserve to be extracted: “The provisions of section 9(1)(v)(b), read with section 5(2) and section 4(1)(2) leave no room for doubt that the income payable by way of interest by a resident to a non-resident which is not payable for the purpose of carrying on of the business of such resident outside India or for earning income from any s…

DCIT, Circle-17(2), Hyderabad vs. Vijai Electricals Limited, Hyderabad

ITA 1692/HYD/2016[2009-10]Status: DisposedITAT Hyderabad11 May 2021AY 2009-10

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahu(Through Virtual Hearing) Dy. Commissioner Of Income Tax, Circle 17(2), Hyderabad. …..Appellant. Vs. M/S. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Respondent. Pan Aaacv 7259B M/S. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Appellant. Vs. Dy. Commissioner Of Income Tax, Circle 17(2), Hyderabad. …..Respondent.

For Appellant: Shri S. Rama RaoFor Respondent: Shri Sunil Kumar Pandey (D.R.)
Section 143(3)Section 195Section 40Section 92C(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘ A ‘ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing) Dy. Commissioner of Income Tax, Circle 17(2), Hyderabad. …..Appellant. Vs. M/s. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Respondent. PAN AAACV 7259B M/s. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Appellant. Vs. Dy. Commissioner of Income Tax, Circle 17(2), Hyderabad. …..Respondent. Assessee By : Shri S. Rama Rao. Revenue By : Shri Sunil Kumar Pandey (D.R.…

Broach Textile Mills Ltd., Bharuch vs. The Dy.CIT., Bharuch Circle, Bharuch

In the result, the appeal of the assessee stands allowed

ITA 152/AHD/2014[2002-03]Status: DisposedITAT Surat15 May 2019AY 2002-03

Bench: Shri Bhavnesh Saini & Shri O. P. Meenaआ.अ.सं./I.T.A No.152/Ahd/2014: िनधा"रण वष"/Assessment Year: 2002-03 M S Broach Textile Mills Ltd. , V. Deputy Commissioner Of Income- 16 Ankur Tower B/H Central Bank , M Tax, Circle - Bharuch G Road Bharuch Pan: Aaacb 6244 J अपीलाथ" Appellant ""यथ"/Respondent

Section 143Section 195Section 271(1)(c)Section 40

…has explained that such disallowance of Broach Textile Mills Ltd. v. DCIT- Bharuch /I.T.A. No.152/AHD/2014/A.Y.02-03 Page 2 of 5 non deduction of TDS under section 195 was confirmed by the Hon’ble Gujarat High Court in the case of Vijay Ship Breaking [2003] 261 ITR 113 (Gujarat). However, before that the assessee has had filed return of income and the decision of Tribunal in the said case was in favour of the assessee. Therefore, the issue was debatable one; hence, no penalty could be levied. However, the AO was of the view that the assessee has claimed wrong expense in Profit & Loss Account as no TDs was made…

Shree Ganeshaya Trading Co. P.Ltd, Mumbai vs. ITO WD 13(2)(3), Mumbai

In the result, the appeal filed by the assessee in ITA No

ITA 2198/MUM/2017[2012-13]Status: DisposedITAT Mumbai22 Oct 2018AY 2012-13

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2198/Mum/2017 (नििाारण वर्ा / Assessment Year : 2012-13) बिाम/ M/S. Shree Ganeshaya Ito Wd 13(2)(3) Trading Pvt. Ltd., Mumbai A-302, Gokul Garden, V. Thakur Complex, Kandivali East, Mumbai-400101 स्थायी ऱेखा सं./ Pan: Aakcs0949M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri. Ryan Saldanha Revenue By : Shri. Chaudhary Arun Kumar Singh सुनवाई की तारीख /Date Of Hearing : 11.10.2018 घोषणा की तारीख /Date Of Pronouncement : 22.10.2018 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Assessee, Being Ita No. 2198/Mum/2017, Is Directed Against Appellate Order Dated 01.02.2017 Passed By Learned Commissioner Of Income Tax (Appeals)-21, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year 2012-13, The Appellate Proceedings Had Arisen Before Learned Cit(A) From Assessment Order Dated 23.03.2015 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called “The Act”) For Ay 2012-13. 2. The Grounds Of Appeal Raised By The Assessee In The Memo Of Appeal Filed With The Income-Tax Appellate Tribunal, Mumbai (Hereinafter Called “The Tribunal”) Read As Under:-

For Appellant: Shri. Ryan SaldanhaFor Respondent: Shri. Chaudhary Arun Kumar
Section 143(3)Section 14ASection 40

…आयकर अपीऱीय अधिकरण “G” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI JOGINDER SINGH, VICE PRESIDENT AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No.2198/Mum/2017 (नििाारण वर्ा / Assessment Year : 2012-13) बिाम/ M/s. Shree Ganeshaya ITO WD 13(2)(3) Trading Pvt. Ltd., Mumbai A-302, Gokul Garden, v. Thakur Complex, Kandivali East, Mumbai-400101 स्थायी ऱेखा सं./ PAN: AAKCS0949M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee by: Shri. Ryan Saldanha Revenue by : Shri. Chaudhary Arun Kumar Singh सुनवाई की तारीख /Date of Hearing : 11.10.2018 घोषणा की…

Johnson Matthey Public Ltd. Company, Gurgaon vs. DCIT (International Taxation), New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purpose

ITA 1143/DEL/2016[2011-12]Status: DisposedITAT Delhi06 Dec 2017AY 2011-12

Bench: Shri G.D.Agrawal, Hon’Ble & Shri K.N. Chary

Section 143(3)Section 144C(13)Section 234BSection 271(1)(C)Section 9(1)(vii)

…he meaning of section 2(22A) of the Act and before the authorities below, the assessee placed reliance on a decision reported in Viswapriya Financial Services and Securities Limited [2002] 258 ITR 496 (Madras) and CIT vs Vijay Ship Breaking Corporation [2003] 261 ITR 113 (Gujarat). It is, therefore. Clear that there is no dispute as to the facts involved in this matter insofar as Ground Nos.2 to 4 are concerned but only question is in respect of the taxability of such a receipt in India, and if so, under what category whether interest or other source, such a receipt falls. We, therefore, find that no new facts ar…

ITO, Tuticorin vs. Sterlite Industries (India) Limited, Tuticorin

In the result, appeal of the Revenue stands allowed

ITA 1043/CHNY/2012[2003-04]Status: DisposedITAT Chennai28 Feb 2017AY 2003-04

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George]

For Appellant: Shri. S. Renga rajan, JCITFor Respondent: Shri. G. Baskar, Advocate
Section 10(15)(iv)Section 143Section 147Section 154Section 195Section 2Section 201

…d an order on 23.03.2005 holding that interest paid on letter of credit could not be considered as part of the purchase price and decision of the Tribunal in the case of Vijay Ship Breaking Corporation (supra) stood reversed by Hon’ble Gujarat High Court in 261 ITR 113. Accordingly, he held that assessee had failed to deduct tax in respect of interest of LCs paid to persons in Frankfurt and Singapore and a demand was raised on the assessee. Thereafter, on 30.03.2005 assessee requested for 3. rectification of the demand of "1,49,10,925/- raised on it, based on the following reasons: :- 5 -: ‘’1)The payment o…

Commissioner of Income Tax, Delhi II vs. M/s Kohinoor Impex P. Ltd

ITA-179/2001HC Delhi28 Aug 2014
Section 143(3)Section 195Section 263Section 40Section 80HSection 9(1)(i)Section 9(1)(v)Section 95

…overed by Section 9(1)(v) is deemed to be income of the non-resident in India. Interest paid to a foreign party/seller for delayed payment of goods was dealt with Gujarat High Court in Commissioner of Income Tax vs. Vijay Ship Breaking Corporation [2003] 261 ITR 113, and it was held to be taxable under Section 9(1)(v) of the Act. The assessee had then preferred an appeal before the Surpeme Court which was admitted and disposed of by judgment reported as [2009] 314 ITR 309 (SC). However, the Supreme Court did not examine the issue on merits in view of the Explanation 2 to Section 10(15)(iv)(c) of the…

Commissioner of Income Tax Delhi- II vs. M/S Kohinoor Impex P. Ltd

ITA - 179 / 2001HC Delhi28 Aug 2014
Section 143(3)Section 195Section 263Section 40Section 80HSection 9(1)(i)Section 9(1)(v)Section 95

…overed by Section 9(1)(v) is deemed to be income of the non-resident in India. Interest paid to a foreign party/seller for delayed payment of goods was dealt with Gujarat High Court in Commissioner of Income Tax vs. Vijay Ship Breaking Corporation [2003] 261 ITR 113, and it was held to be taxable under Section 9(1)(v) of the Act. The assessee had then preferred an appeal before the Surpeme Court which was admitted and disposed of by judgment reported as [2009] 314 ITR 309 (SC). However, the Supreme Court did not examine the issue on merits in view of the Explanation 2 to Section 10(15)(iv)(c) of the…

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ITA/179/2001HC Delhi28 Aug 2014
Section 143(3)Section 195Section 263Section 40Section 80HSection 9(1)(i)Section 9(1)(v)Section 95

…overed by Section 9(1)(v) is deemed to be income of the non-resident in India. Interest paid to a foreign party/seller for delayed payment of goods was dealt with Gujarat High Court in Commissioner of Income Tax vs. Vijay Ship Breaking Corporation [2003] 261 ITR 113, and it was held to be taxable under Section 9(1)(v) of the Act. The assessee had then preferred an appeal before the Surpeme Court which was admitted and disposed of by judgment reported as [2009] 314 ITR 309 (SC). However, the Supreme Court did not examine the issue on merits in view of the Explanation 2 to Section 10(15)(iv)(c) of the…

Commissioner of Income Tax v. Vijay Ship Breaking Corporation (261 ITR 113) — Cited in 10 Judgments | BharatTax