DIT (International Taxation) v. Morgan Stanley & Co.

Zscaler, Inc., United States of America vs. DCIT, International Tax, Circle 3(1)(1), New Delhi

The appeals are allowed

Bench: Shri Anubhav Sharma & Shri Manish Agarwal, Ccountant Member Assessment Year: 2021-22 Assessment Year : 2022-23 Zscaler Inc., Vs Dcit, 120, Holger Way San Jose, International Tax Circle 3(1)(1), California, Usa, Delhi. Usa 95134. Pan: Aaacz4350P (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate; Shri Kishore Kunal, Advocate; Ms Ankita Prakash, Advocate; & Shri Govind Gupta, Advocate Revenue By : Ms Ekta Jain, Cit-Dr Date Of Hearing : 05.05.2025 Date Of Pronouncement : 18.06.2025 Order Per Anubhav Sharma, Jm: These Appeals Are Preferred By The Assessee Against The Final Assessment Orders Dated 31.10.2023 & 22.01.2025 Passed By The Dy. Commissioner Of Income-Tax, International Tax Circle 3(1)(1), Delhi (Hereinafter Referred To As The Ld. Ao) U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961

…he alleged PE has been remunerated at arm’s length price and therefore, no further income could be attributed and assessed to tax in India in view of principle laid down by Hon’ble Supreme Court in case of DIT (International Taxation) v. Morgan Stanley & Co. (284 ITR 260). 6. That on the facts and circumstances of the case and in law and without prejudice to the above, the Ld. AO has erred in attributing entire receipts earned from India to be the income from operations of the alleged PE in India. 7. That on the facts and circumstances of the case and in law, the Ld. AO has erred in arbitrarily adopting a profit…

Zscaler, Inc., United States vs. Deputy Commissioner of Income Tax, International Tax, Circle 3(1)(1), Delhi

The appeals are allowed

Bench: Shri Anubhav Sharma & Shri Manish Agarwal, Ccountant Member Assessment Year: 2021-22 Assessment Year : 2022-23 Zscaler Inc., Vs Dcit, 120, Holger Way San Jose, International Tax Circle 3(1)(1), California, Usa, Delhi. Usa 95134. Pan: Aaacz4350P (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate; Shri Kishore Kunal, Advocate; Ms Ankita Prakash, Advocate; & Shri Govind Gupta, Advocate Revenue By : Ms Ekta Jain, Cit-Dr Date Of Hearing : 05.05.2025 Date Of Pronouncement : 18.06.2025 Order Per Anubhav Sharma, Jm: These Appeals Are Preferred By The Assessee Against The Final Assessment Orders Dated 31.10.2023 & 22.01.2025 Passed By The Dy. Commissioner Of Income-Tax, International Tax Circle 3(1)(1), Delhi (Hereinafter Referred To As The Ld. Ao) U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961

…he alleged PE has been remunerated at arm’s length price and therefore, no further income could be attributed and assessed to tax in India in view of principle laid down by Hon’ble Supreme Court in case of DIT (International Taxation) v. Morgan Stanley & Co. (284 ITR 260). 6. That on the facts and circumstances of the case and in law and without prejudice to the above, the Ld. AO has erred in attributing entire receipts earned from India to be the income from operations of the alleged PE in India. 7. That on the facts and circumstances of the case and in law, the Ld. AO has erred in arbitrarily adopting a profit…

Shri Vijay Singh, Gurgaon vs. ITO, Gurgaon

The appeals are allowed

Bench: Shri Anubhav Sharma & Shri Manish Agarwal, Ccountant Member Assessment Year: 2021-22 Assessment Year : 2022-23 Zscaler Inc., Vs Dcit, 120, Holger Way San Jose, International Tax Circle 3(1)(1), California, Usa, Delhi. Usa 95134. Pan: Aaacz4350P (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate; Shri Kishore Kunal, Advocate; Ms Ankita Prakash, Advocate; & Shri Govind Gupta, Advocate Revenue By : Ms Ekta Jain, Cit-Dr Date Of Hearing : 05.05.2025 Date Of Pronouncement : 18.06.2025 Order Per Anubhav Sharma, Jm: These Appeals Are Preferred By The Assessee Against The Final Assessment Orders Dated 31.10.2023 & 22.01.2025 Passed By The Dy. Commissioner Of Income-Tax, International Tax Circle 3(1)(1), Delhi (Hereinafter Referred To As The Ld. Ao) U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961

…he alleged PE has been remunerated at arm’s length price and therefore, no further income could be attributed and assessed to tax in India in view of principle laid down by Hon’ble Supreme Court in case of DIT (International Taxation) v. Morgan Stanley & Co. (284 ITR 260). 6. That on the facts and circumstances of the case and in law and without prejudice to the above, the Ld. AO has erred in attributing entire receipts earned from India to be the income from operations of the alleged PE in India. 7. That on the facts and circumstances of the case and in law, the Ld. AO has erred in arbitrarily adopting a profit…

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

…revert back and was repatriated to their parent job. Here, the Supreme Court has placed reliance on substance rather than form. An important factor and fact, which was noticed by the Authority on Advance Ruling in Morgan Stanley & Co. Inc., In re[2006] 284 ITR 260 was:- ―The staff deputed to MSAS would be on the payroll of the applicant and the remuneration paid by it will be reimbursed by MSAS. Out of a total remuneration of Rs.49,402,704 paid to employees, reimbursement to associate company for deputed staff aggregates to Rs.24,220,631 ; performance appraisal, pro-motion and discipline, etc., wo…

Director of Income Tax vs. M/S E Funds It Solution

The appeals are disposed of

…revert back and was repatriated to their parent job. Here, the Supreme Court has placed reliance on substance rather than form. An important factor and fact, which was noticed by the Authority on Advance Ruling in Morgan Stanley & Co. Inc., In re[2006] 284 ITR 260 was:- ―The staff deputed to MSAS would be on the payroll of the applicant and the remuneration paid by it will be reimbursed by MSAS. Out of a total remuneration of Rs.49,402,704 paid to employees, reimbursement to associate company for deputed staff aggregates to Rs.24,220,631 ; performance appraisal, pro-motion and discipline, etc., wo…