Diamond Services International (P.) Ltd. v. Union of India

169 Taxmann 201High Court2008#3746 most cited

What is Diamond Services International (P.) Ltd. v. Union of India authority for?

Performing the job of grading diamonds in a laboratory and issuing a grading certificate does not constitute the transfer of technical skill, knowledge, or commercial experience to the customer. Such activities do not amount to the provision of technical services under Section 9(1)(vi) or Article 12 of a DTAA.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2025.

Also referred to as

Diamond Services International · Section 9(1)(vi) · royalty income · technical services · Article 12 DTAA · grading diamonds · certificate · no technical skill transfer · non-resident services

Also reported as

304 ITR 201

Sections most often in play

Section 143(3)Section 9(1)(vi)Section 12(4)Section 144CSection 234DSection 5Section 7Section 144C(13)

Issues it is cited on

section 234droyalty incomesection 90(2)section 144c(3)section 9(1)(vi)permanent establishmentsection 9(1)section 90associated enterprisesection 144cnon-residentfinal assessment order

Judgments citing Diamond Services International (P.) Ltd. v. Union of India

Koninklijke Philips N.V., Kolkata vs. ACIT(It), Circle-1(2), Kolkata

In the result, the appeals of the assessee, in all the assessment years, are allowed in part

ITA 87/KOL/2017[2012-13]Status: DisposedITAT Kolkata20 Feb 2019AY 2012-13

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravii.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [Pan : Aacck 0806 B] Dcit(It) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No.2474/Kol/2017 Assessment Year: 2013-14 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue Appearances By: Shri P.J. Pardiwala, Sr. Advocate & Navneet Misra, Adovacate, Appearing On Behalf Of The Assessee. Shri P. K. Srihari, Cit-Dr, Appearing On Behalf Of The Revenue.

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, KOLKATA Before Sri J. Sudhakar Reddy, Accountant Member & Sri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [PAN : AACCK 0806 B] DCIT(IT) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [PAN : AACCK 0806 B] ACIT(IT), Circle-1(2…

Koninklijke Philips N.V., Kolkata vs. DCIT, (It)-1(2), Kolkata

In the result, the appeals of the assessee, in all the assessment years, are allowed in part

ITA 112/KOL/2016[2011-2012]Status: DisposedITAT Kolkata20 Feb 2019AY 2011-2012

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravii.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [Pan : Aacck 0806 B] Dcit(It) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No.2474/Kol/2017 Assessment Year: 2013-14 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue Appearances By: Shri P.J. Pardiwala, Sr. Advocate & Navneet Misra, Adovacate, Appearing On Behalf Of The Assessee. Shri P. K. Srihari, Cit-Dr, Appearing On Behalf Of The Revenue.

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, KOLKATA Before Sri J. Sudhakar Reddy, Accountant Member & Sri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [PAN : AACCK 0806 B] DCIT(IT) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [PAN : AACCK 0806 B] ACIT(IT), Circle-1(2…

Koninklijke Philips N.V., Kolkata vs. ACIT(It), Circle - 1(2), Kolkata

In the result, the appeals of the assessee, in all the assessment years, are allowed in part

ITA 2474/KOL/2017[2013-14]Status: DisposedITAT Kolkata20 Feb 2019AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravii.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [Pan : Aacck 0806 B] Dcit(It) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No.2474/Kol/2017 Assessment Year: 2013-14 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [Pan : Aacck 0806 B] Acit(It), Circle-1(2), Kolkata………............................................................…....….…………..………...Revenue Appearances By: Shri P.J. Pardiwala, Sr. Advocate & Navneet Misra, Adovacate, Appearing On Behalf Of The Assessee. Shri P. K. Srihari, Cit-Dr, Appearing On Behalf Of The Revenue.

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, KOLKATA Before Sri J. Sudhakar Reddy, Accountant Member & Sri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 112/Kol/2016 Assessment Year: 2011-12 Koninklijke Philips N.V……………………………...............................………...…………………….…Assessee [PAN : AACCK 0806 B] DCIT(IT) -1(2), Kolkata………............................................................…....….…………..………...Revenue & I.T.A. No. 87/Kol/2017 Assessment Year: 2012-13 Koninklijke Philips N.V……………………………........................................………...…………………….…Assessee [PAN : AACCK 0806 B] ACIT(IT), Circle-1(2…

Koninklijke Philips N.V, Kolkata vs. DCIT, (It)-1(2), Kolkata

ITA 381/KOL/2015[2010-2011]Status: DisposedITAT Kolkata25 Oct 2018AY 2010-2011

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Koninklijke Philips Electronics N.V. Vs. Dcit(It) – 1(1), Kolkata C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. Dcit(It) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) ..

For Appellant: Shri Arvind Sonde, Ketan K. Ved, ARFor Respondent: Shri G. Mallikarjuna, CIT(DR)
Section 143(3)Section 144C(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH KOLKATA BEFORE SHRI S.S. GODARA, JM & DR. A.L. SAINI, AM Koninklijke Philips Electronics N.V. Vs. DCIT(IT) – 1(1), Kolkata C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block EP & GP, 1st 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACCK 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. DCIT(IT) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Beng…

Koninklijke Philips N.V, Kolkata vs. DDIT (It)-1(1), Kolkata

ITA 565/KOL/2014[2009-2010]Status: DisposedITAT Kolkata25 Oct 2018AY 2009-2010

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Koninklijke Philips Electronics N.V. Vs. Dcit(It) – 1(1), Kolkata C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. Dcit(It) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) ..

For Appellant: Shri Arvind Sonde, Ketan K. Ved, ARFor Respondent: Shri G. Mallikarjuna, CIT(DR)
Section 143(3)Section 144C(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH KOLKATA BEFORE SHRI S.S. GODARA, JM & DR. A.L. SAINI, AM Koninklijke Philips Electronics N.V. Vs. DCIT(IT) – 1(1), Kolkata C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block EP & GP, 1st 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACCK 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. DCIT(IT) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Beng…

Koninklijke Philips Electronics N.V, Kolkata vs. DDIT (It) - 1(1), Kol, Kolkata

ITA 1889/KOL/2012[2008-2009]Status: DisposedITAT Kolkata25 Oct 2018AY 2008-2009

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Koninklijke Philips Electronics N.V. Vs. Dcit(It) – 1(1), Kolkata C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. Dcit(It) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/O Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block Ep & Gp, 1St 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacck 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) ..

For Appellant: Shri Arvind Sonde, Ketan K. Ved, ARFor Respondent: Shri G. Mallikarjuna, CIT(DR)
Section 143(3)Section 144C(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH KOLKATA BEFORE SHRI S.S. GODARA, JM & DR. A.L. SAINI, AM Koninklijke Philips Electronics N.V. Vs. DCIT(IT) – 1(1), Kolkata C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Bengal Intelligent Park, Aayakar Bhawan Poorva, Building Alpha, Block EP & GP, 1st 110, Shanti Pally, Kolkata Floor, Sector V, Salt Lake Electronics – 700 107. Complex, Kolkata – 700 091. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACCK 0806 B (अपीलाथ" /Assessee) (""यथ" / Respondent) .. & Vs. DCIT(IT) – 1(1), Kolkata Koninklijke Philips Electronics N.V. C/o Deloitte Touche Tohmatsu India Pvt. Ltd., Beng…

DCIT, New Delhi vs. M/S Dlf Ltd., New Delhi

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

ITA 4342/DEL/2012[2007-08]Status: DisposedITAT Delhi01 Nov 2017AY 2007-08

Bench: Shri B.P. Jain & Shri K.N. Chary.

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Ms. Renu Amitabh, CIT-DR
Section 142Section 143(3)Section 14ASection 250Section 40

…sue of a report does not lead to any technical/consultancy services being rendered by a non resident to the appellant. In this regard, the appellant has relied upon the Bombay High Court judgment in the case of Diamond Services International Pvt. Ltd. vs. UOI 304 ITR 201 [2008]. It is submitted by the appellant that even if the said remittance is treated as technical services as per section 9(1)(vii), the chargebility of such services needs to be examine with reference to Indo-Singapore-DTAA. As per the said DTAA the fees payable for technical services is covered by Article 12 of the Indo- Singapore-DTAA. The pro…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

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

ITA 3846/DEL/2012[2007-08]Status: DisposedITAT Delhi01 Nov 2017AY 2007-08

Bench: Shri B.P. Jain & Shri K.N. Chary.

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Ms. Renu Amitabh, CIT-DR
Section 142Section 143(3)Section 14ASection 250Section 40

…sue of a report does not lead to any technical/consultancy services being rendered by a non resident to the appellant. In this regard, the appellant has relied upon the Bombay High Court judgment in the case of Diamond Services International Pvt. Ltd. vs. UOI 304 ITR 201 [2008]. It is submitted by the appellant that even if the said remittance is treated as technical services as per section 9(1)(vii), the chargebility of such services needs to be examine with reference to Indo-Singapore-DTAA. As per the said DTAA the fees payable for technical services is covered by Article 12 of the Indo- Singapore-DTAA. The pro…

Asst CIT 16(3), Mumbai vs. D.A. Jhaveri, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3758/MUM/2013[2008-09]Status: DisposedITAT Mumbai30 Nov 2016AY 2008-09

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2008-09)

For Appellant: Shri Hiro RaiFor Respondent: Shri Morya Pratap
Section 143(3)Section 40Section 40a

…ng the diamonds and giving a report thereon to its clients, which included the assessee. In this background, CIT(A) relied 6 M/s. D.A. Jhaveri upon the judgment of the Hon'ble Bombay High Court in the case of Diamond Services International Pvt. Ltd., (2008) 169 Taxmann 201 to hold that the impugned certification services do not involve parting of any technical knowledge to the clients, though HRD was using the expertise and technical know-how possessed by it. 9. Further, the CIT(A) examined the issue as to whether the payment made by the assessee for availing the services from HRD would fall within the meaning…

Van Oord Dredging and Marine Contractors, Mumbai vs. Addl DIT (It) RG 2, Mumbai

In the result, appeal of the assessee stands partly allowed

ITA 7589/MUM/2012[2009-10]Status: DisposedITAT Mumbai07 Oct 2016AY 2009-10

Bench: Shri G S Pannu & Shri Amit Shukla & Ita No. : 7589/Mum/2012 (Assessment Year: 2009-10) Van Oord Dredging & Marine Vs Addl. Director Of Income-Tax Contractors Bv, (International Taxation)-Range-2, 2Nd Floor, Central Plaza, First Floor, Room No.108, Cst Road, Kalina, Scindhia House, Ballard Estate, Mumbai -400 098 Mumbai -400 038 "थयी लेखा सं.:Pan : Aaach 3500 M अपीलाथ" (Appellant) ""यथ" (Respondent) Applicant By : "ी Shri Porus Kaka Respondent By : "ी Jshri N K Chand सुनवाई क" तार"ख /Date Of Hearing : 11-07-2016 घोषणा क" तार"ख /Date Of Pronouncement : 07-10-2016 आदेश Order अिमत शु"ला, "याियक सद"य: Per Amit Shukla, J.M.: The Aforesaid Appeal Has Been Filed By The Assessee Against Final Assessment Order Dated 30.10.2012, Passed Under Section 143(3) R.W.S. 144C(13) In Pursuance Of Direction Given By The Dispute Resolution Panel (Drp) Under Section 144C(5) Vide Order Dated 29.09.2012, For The Assessment Year 2009-10. In The Grounds Of Appeal, The Assessee Has Raised Following Grounds:- “1. On The Facts & In The Circumstances Of The Case & In Aw, The Learned Ao, Based On Directions Of Drp Erred In Making Addition Of Rs.24,80,29,144 (I.E. Management Service Fees Of Rs.22,57,89,998 & Reimbursement Of 2 Van Oord Dredging & Marine Contractors Bv

Section 143(3)Section 144C(5)

…by VOIPL to the assessee cannot be reckoned as “royalty”. In support of his contention, he relied upon the following decisions:- Sr. Case Law Citation No 1 GECF Asia Limited v DDIT 65 SOT 257 2 Diamond Services International (P) Ltd [2008] Vs. Union of India 304 ITR 201 3 DDIT v Preroy AG [2010] 39 SOT 187 (Mumbai ITAT) 4 Spice Telecom v ITO [2008] 113 TTJ 502 (Bangalore ITAT) 10. Another limb of his argument on this aspect was that, the ‘service fees’ which has been received by the assessee for rendering of aforesaid services are without any markup and constitutes pure allocation of cost, which cannot be held…

Stempeutics Research Private Limited, Bangalore vs. Joint Director of Income Tax, Bangalore

In the result both the appeals of the assessee are dismissed

ITA 1450/BANG/2013[2011-12]Status: DisposedITAT Bangalore16 Sept 2016AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Smt. Renuka Devi, JCIT (D.R)
Section 195Section 201(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘ C ’ BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T.(I.T) A. No.1450/Bang/2013 & 1196/Bang/2014 (Assessment Years : 2011-12 & 2012-13) M/s. Stempeutics Research Pvt. Ltd., 9th Floor, Manipal Hospital, Old Airport Road, Rustom Bagh, Bangalore-560 017. …. Appellant. PAN AAJCS 8177Q Vs. Joint Director of Income Tax, (International Taxation) Range 1, Bangalore. ….. Respondent. Appellant By : Smt. Sheetal, Advocate. Respondent By : Smt. Renuka Devi, JCIT (D.R) Date of Hearing : 26.8.2016. Date of Pronouncement : 1…

Gujarat Pipavav Port Ltd, Mumbai vs. ITO TDS 3, Mumbai

ITA 7878/MUM/2010[2008-09]Status: DisposedITAT Mumbai03 Feb 2016AY 2008-09
For Appellant: Shri Sunil Moti LalaFor Respondent: Shri Pankaj Kumar-Sr.A.R
Section 201Section 201rSection 254(1)Section 6Section 9

…ebutted the contention of the assessee that the payment made by it to Liftech was not covered by the "make available" clause as per Article 12(4)(b)of the India-USA DTAA.It relied upon the cases of CESC Ltd.(87ITD653)and Diamond Services International P. Ltd.(304 ITR 201),Worley Parsons Services Pte Ltd.(301 ITR 54),De Beers India Minerals P.Ltd (297 ITR 76-AT) Anapharma Inc.(305 ITR 394)and ICICI Bank Ltd.(20SOT453)and argued that such payment was in the nature of business income and in absence of PE of Liftech such payment could not be taxed in India,that the assessee's contract was not for the purpose of obtai…