DIT v. GE Packaged Power Inc.

The Commissioner of Income Tax - International Taxation -1 vs. Ge Engine Service Mcallen Lp

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

…$-48 to 53 & 63 to 70 * 48 + 49 50 51 52 IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 605/2018 & CM APPL. 21057-21059/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 Appellant versus GE ENGINE SERVICE DISRTIBUTION LLC Respondent ITA 606/2018 & CM APPL. 21060-21062/2018 THE PR.COMMISSIONER OF INCOME TAX - (INTERNATIONAL TAXATION)-1 Appellant versus GE ENGINE SERVICES INC Respondent ITA 607/2018 & CM APPL. 21063-21065/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 • Appellant versus GE ENGINE SERVICE MCALLEN LP . Respondent ITA 608/2018 & CM APPL. 21066-21068/2018 THE PR.COMMISSIONER O…

The Commissioner of Income Tax - International Taxation -1 vs. Ge Engine Service Distribution Llc

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

…$-48 to 53 & 63 to 70 * 48 + 49 50 51 52 IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 605/2018 & CM APPL. 21057-21059/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 Appellant versus GE ENGINE SERVICE DISRTIBUTION LLC Respondent ITA 606/2018 & CM APPL. 21060-21062/2018 THE PR.COMMISSIONER OF INCOME TAX - (INTERNATIONAL TAXATION)-1 Appellant versus GE ENGINE SERVICES INC Respondent ITA 607/2018 & CM APPL. 21063-21065/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 • Appellant versus GE ENGINE SERVICE MCALLEN LP . Respondent ITA 608/2018 & CM APPL. 21066-21068/2018 THE PR.COMMISSIONER O…

The Pr.Commissioner of Income Tax - (International Taxation) -1 vs. Ge Engine Services Mcallen Lp

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

…$-48 to 53 & 63 to 70 * 48 + 49 50 51 52 IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 605/2018 & CM APPL. 21057-21059/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 Appellant versus GE ENGINE SERVICE DISRTIBUTION LLC Respondent ITA 606/2018 & CM APPL. 21060-21062/2018 THE PR.COMMISSIONER OF INCOME TAX - (INTERNATIONAL TAXATION)-1 Appellant versus GE ENGINE SERVICES INC Respondent ITA 607/2018 & CM APPL. 21063-21065/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 • Appellant versus GE ENGINE SERVICE MCALLEN LP . Respondent ITA 608/2018 & CM APPL. 21066-21068/2018 THE PR.COMMISSIONER O…

The Pr.Commissioner of Income Tax - (International Taxation)-1 vs. Ge Engine Services Tri Remanufacturing Inc

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

…$-48 to 53 & 63 to 70 * 48 + 49 50 51 52 IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 605/2018 & CM APPL. 21057-21059/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 Appellant versus GE ENGINE SERVICE DISRTIBUTION LLC Respondent ITA 606/2018 & CM APPL. 21060-21062/2018 THE PR.COMMISSIONER OF INCOME TAX - (INTERNATIONAL TAXATION)-1 Appellant versus GE ENGINE SERVICES INC Respondent ITA 607/2018 & CM APPL. 21063-21065/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-1 • Appellant versus GE ENGINE SERVICE MCALLEN LP . Respondent ITA 608/2018 & CM APPL. 21066-21068/2018 THE PR.COMMISSIONER O…

The Bank of Tokyo Mistubishi Ufj Ltd., New Delhi vs. DCIT (International Taxation), New Delhi

In the result, appeal of the assessee is partly allowed

Bench: Shri N.K. Saini & Before Mr. Bhavnesh Saini

…he Act is not applicable since ECB interest received by the assessee from the borrowers is subject to tax deduction at source under section 195 of the Act. Reliance is placed on the judgment of the Delhi High Court in the case of GE Packaged Power Inc. [2015] 373 ITR 65 wherein it has been held by the Delhi High Court that no interest under section 234B of the Act can be levied where the payment to non-resident payee is subject to tax deduction at source. 24. The ld. CIT [DR], on the other hand, contended that ECB interest has been earned by the HO/other overseas branches of the assessee from third party. Such EC…

M/S. Nortel Networks India International Inc., Gurgaon vs. DDIT, New Delhi

Bench: Sh. N.K.Saini & Sh.K.N.Charry

…y of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. As regards the cross objections raised by the reve…

M/S Nortal Networks India International Inc., Gurgaon vs. ADIT, New Delhi

Bench: Sh. N.K.Saini & Sh.K.N.Charry

…y of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. As regards the cross objections raised by the reve…

M/S Nortal Networks India International Inc., Gurgaon vs. ADIT, New Delhi

Bench: Sh. N.K.Saini & Sh.K.N.Charry

…y of interest under section 234B of the Act. Ld. AR submitted that this issue also stands covered in favour of the Assessee by decisions of the Hon’ble Delhi High Court in the case of DIT Vs. ZTE Corporation (392 ITR 80) and DIT Vs. GE Packaged Power Inc. (373 ITR 65) (Del.). Be that as it may, in view of the finding of the Hon’ble High Court in assessee’s own case reported in (2016) 386 ITR 353 that no portion of the profits from off shore supplies was taxable in India, levy of interest becomes academic given the absence of any taxable income in India. 23. As regards the cross objections raised by the reve…

M/S Kss Engineering Ltd., Mumbai vs. DCIT (International Taxation), New Delhi

In the result, the appeal of the assessee in ITA

Bench: Shri. G. D. Agrawal & Shri Amit Shukla

…yments made to it are subject to tax deduction u/s. 195 of the Act. 14. As regards chargeability of interest u/s. 234B of the Act, we find that the DRP has relied upon the decision of the Hon’ble Delhi High Court in the case of DIT vs. GE Packaged Power Inc, 373 ITR 65. This decision has been further 12 ITA No.1362 & 499/DEL/2016 &ITA No.462/DEL/2017 followed by the Hon’ble High Court in Agence France vs. ADIT. Since no contrary decision has been brought by the Department before us after the said decision of the jurisdictional High Court, therefore, we do not find any reason to deviate from the order of the DR…

DDIT, Dehradun vs. M/S. Almansoori Sperialized Engineering Co., Dehradun

In the result, appeal of the Revenue is allowed partly for statistical purpose

Bench: Sh. C.M. Garg & Sh. O.P. Kantassessment Year: 2010-11 Vs. Almansoori Ddit, International Taxation, Sperialized Dehradun Engineering Co., C/O- M/S. Nangia & Co., Cas 75/7, Raipur Road, Dehradun. Pan : Aaaca9529M (Appellant) (Respondent) Appellant By Sr. S.K. Jain, Sr.Dr Respondent By S/Sh. Amit Arora & Vishal Mishra, Cas Date Of Hearing 11.04.2017 Date Of Pronouncement 26.04.2017 Order Per O.P. Kant, A.M.: This Appeal By The Revenue Is Directed Against Order Dated 23/04/2014 Of Ld. Commissioner Of Income-Tax (Appeals)-Ii, Dehradun (In Short “The Cit-A”) For Assessment Year 2010-11, Raising Following Grounds Of Appeal:

…us, the Ld. Senior DR supporting the grounds submitted that the assessee was required to pay interest under section 234B of the Act. 6.1 The Ld. counsel on the other hand, submitted that Hon’ble Delhi High Court in the case of DIT versus GE packaged power Inc 373 ITR 65 has held that interest under section 234B of the Act was not chargeable in case of non-resident whose entire income was subject to tax deduction at source under section 195 of the Act. 6.2 We have heard the rival submission and perused the relevant material on record. In the decision of the Jacobs Civil (2011) 330 ITR 578(Delhi) it is held that th…

Commissioner of Income Tax (International Taxation) - 1 vs. Aspect Software Inc

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

…he Court finds that in Commissioner ofIncome Tax, International Taxation -2 v. ZTE Corporation {supra), the question has been answered in favour of the Assessee and against the Revenue following the decision in Director of Income Tax v. GE Packaged Power Inc. 373 ITR 65. Consequently, this issue is also answered against the Revenue and in favour ofthe Assessee. 11. These appeals are accordingly dismissed but in the circumstances of the case, no orders as to costs. S.MURALIDHAR, J CHANDER SHEKHAR, J APRIL 25, 2017 Rm ITA Nos. 909/2015, 28/2016, 861/2016, 944/2016, 4/2017, 6/2017 Page 7of 7…

Cairn Uk Holding Ltd., Ahmedabad vs. DCIT (International Taxation), New Delhi

In the result ground No. 5 of the appeal of the assessee is allowed

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

…Court in case of CIT Vs. Rewati Equipment Ltd (2008) 298 ITR 67 and M/s. MRF Ltd Vs. DCIT TC(Appeal No. 234/2016) dated 04th August 2016. Further, Hon'ble Delhi High Court also covers issue in favour of the assessee in DIT Vs. GE Packaged Power Incorporation 373 ITR 65 wherein, it has been held that if tax is required to be deducted on the income of the non-resident assessee under the provisions of section 195 of the Income Tax Act then no fault can rest on the shoulder of a non-resident assessee and hence, he cannot be burdened with the liability of interest u/s 234A, 234B and 234C of the Act. Recently, Hon'ble…

DCIT, Dehradun vs. M/S. Expro Gulf Ltd., Mumbai

In the result, the appeal of the Revenue is partly allowed for statistical

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…eld to be chargeable to tax in India the assessee was not required to pay any advance tax in view of tax deductible for it u/s 195 of the Act by the payer. He further relied on the decision of Hon’ble Delhi High Court in DIT Vs. GE Package Power Incorporation 373 ITR 65. 38. The ld DR relied on the order of the lower authorities and submitted that interest u/s 234B-C is consequential and is rightly charged. 20 ITA No.6589/Del./2014 & CO No. 221/Del./2015 39. We have carefully considered the rival contentions. The Hon’ble Delhi High Court in DIT Vs. GE Package Power Incorporation 373 ITR 65 (Delhi) has held as u…

DDIT, Dehradun vs. M/S. Cgg Veritas Services Sa, Dehradun

In the result, the appeal of the Revenue is dismissed

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…the interest u/s. 234B is not chargeable in case of a non-resident whose entire income is subject to tax deduction at source u/s. 195. In respect of this, he placed reliance on the decision of Delhi High Court in the case of DIT vs. GE Packaged Power Inc., 373 ITR 65. 5. After hearing both the sides and perusing the material on record and case laws cited by the assessee, we find that the issue involved in this appeal is covered by the decision of Hon’ble Jurisdictional High Court in own case of assessee for the assessment year 2007-08 (Appeal No. 08 of 2012) after relying upon the decision of Hon’ble Supreme…

The Commissioner of Income Tax International Taxation-2 vs. Zte Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…Tax v Alcatel Lucent Canada [2015] 372 ITR 475 (Del) which had in turn relied on Director of Income Tax v Erricsson AB (2012) 343 ITR 470. On the issue of interest under Section 234B, reliance was placed on Director of Income Tax v GE Packaged Power Inc. 373 ITR 65 and relief was granted to the assessee. 11. Mr. Ruchir Bhatia, learned counsel argues that the ITAT fell into error, in holding that payment for the embedded software, was not royalty. It was submitted that software prices also have separately been mentioned in the contract itself. The following conditions under the contract between the ass…

The Commissioner of Income Tax International Taxation-2 vs. Zte Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…Tax v Alcatel Lucent Canada [2015] 372 ITR 475 (Del) which had in turn relied on Director of Income Tax v Erricsson AB (2012) 343 ITR 470. On the issue of interest under Section 234B, reliance was placed on Director of Income Tax v GE Packaged Power Inc. 373 ITR 65 and relief was granted to the assessee. 11. Mr. Ruchir Bhatia, learned counsel argues that the ITAT fell into error, in holding that payment for the embedded software, was not royalty. It was submitted that software prices also have separately been mentioned in the contract itself. The following conditions under the contract between the ass…

The Commissioner of Income Tax International Taxation-2 vs. Zte Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…Tax v Alcatel Lucent Canada [2015] 372 ITR 475 (Del) which had in turn relied on Director of Income Tax v Erricsson AB (2012) 343 ITR 470. On the issue of interest under Section 234B, reliance was placed on Director of Income Tax v GE Packaged Power Inc. 373 ITR 65 and relief was granted to the assessee. 11. Mr. Ruchir Bhatia, learned counsel argues that the ITAT fell into error, in holding that payment for the embedded software, was not royalty. It was submitted that software prices also have separately been mentioned in the contract itself. The following conditions under the contract between the ass…

The Commissioner of Income Tax International Taxation-2 vs. Zte Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…Tax v Alcatel Lucent Canada [2015] 372 ITR 475 (Del) which had in turn relied on Director of Income Tax v Erricsson AB (2012) 343 ITR 470. On the issue of interest under Section 234B, reliance was placed on Director of Income Tax v GE Packaged Power Inc. 373 ITR 65 and relief was granted to the assessee. 11. Mr. Ruchir Bhatia, learned counsel argues that the ITAT fell into error, in holding that payment for the embedded software, was not royalty. It was submitted that software prices also have separately been mentioned in the contract itself. The following conditions under the contract between the ass…

The Commissioner of Income Tax International Taxation-2 vs. Zte Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…Tax v Alcatel Lucent Canada [2015] 372 ITR 475 (Del) which had in turn relied on Director of Income Tax v Erricsson AB (2012) 343 ITR 470. On the issue of interest under Section 234B, reliance was placed on Director of Income Tax v GE Packaged Power Inc. 373 ITR 65 and relief was granted to the assessee. 11. Mr. Ruchir Bhatia, learned counsel argues that the ITAT fell into error, in holding that payment for the embedded software, was not royalty. It was submitted that software prices also have separately been mentioned in the contract itself. The following conditions under the contract between the ass…

Commissiooner of Income Tax (Internation Taxation-3) vs. Rollys Royce Military Aero Engines Ltd

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…-resident, from the Indian Navy and Hindustan Aeronautics Ltd. (HAL). These were held to be deductible under Section 195 of the Act upon determination in-that regard. The ITAT took note of the decision of this Court in DIT vs. G.E. Packaged Power Inc.. (2015) 373 ITR 65 and held against the Revenue. That decision in our opinion covers th<e facts of these cases as well. We, furthermore, noticed that the amendment to Section,234B of the Act was made to cover a fact situation similar to the present one later i.e. for AY 2013-14 by virtue of an amendment carried out in 2012 the assessments in question relate to AY 19…