DIT v. Morgan Stanley & Co.

Itochu Corporation, Japan vs. ACIT (International Taxation), Circle-2(1)(1), New Delhi

The appeals of the assessee are partly allowed for statistical purposes

Bench: Shri R. K. Pandaa N D Ms. Suchitra Kamblei.T.A. No. 360/Del/2017 (A.Y. 2013-14) A N D I.T.A. No. 7615/Del/2018 (A.Y. 2015-16) (Through Video Conferencing) Itochu Corporation, Acit, 5–1, Kita-Aoyama, Vs. (International Taxation) 2–Chome, Minato-Ku Circle 2(1)(1), Tokyo 107-8077, Japan. New Delhi. Pan: Aabci5567L (Appellant) (Respondent)

…stries Co. Ltd. 291 ITR 482 (SC); 12 Ericsson A.B. 343 ITR 470 (Del); 23 AND ITA No. 7615/Del/2018 13 LG Cable 237 CTR 438 (Del); 14 LS Cable Vs. DIT (2011) 197 Taxman 100 (Del.); 15 DIT Vs. Nokia Networks (2012) 253 CTR 417 (Del); 16 DIT Vs. Morgan Stanley 292 ITR 416 (SC); 17 DIT Vs. Honda Motors Co. Ltd. 265 Taxman 542 (SC); 18 ESS Advertising (Mauritius) S.N.C. et Compagnie (ITA. Nos. 3760 & 4542/Del/2016); 19 Anglo French Textile Company Ltd. Vs. CIT 23 ITR 101 (SC); 20 Hukum Chand Mills Ltd. Vs. CIT 103 ITR 548 (SC); 21 CIT Vs. Ahmedbhai Umarbhai & Co. 18 ITR 472 (SC); 22 The Anglo–French Textile Co. Ltd.…

Itochu Corporation, Japan vs. DCIT (International Taxation), New Delhi

The appeals of the assessee are partly allowed for statistical purposes

Bench: Shri R. K. Pandaa N D Ms. Suchitra Kamblei.T.A. No. 360/Del/2017 (A.Y. 2013-14) A N D I.T.A. No. 7615/Del/2018 (A.Y. 2015-16) (Through Video Conferencing) Itochu Corporation, Acit, 5–1, Kita-Aoyama, Vs. (International Taxation) 2–Chome, Minato-Ku Circle 2(1)(1), Tokyo 107-8077, Japan. New Delhi. Pan: Aabci5567L (Appellant) (Respondent)

…stries Co. Ltd. 291 ITR 482 (SC); 12 Ericsson A.B. 343 ITR 470 (Del); 23 AND ITA No. 7615/Del/2018 13 LG Cable 237 CTR 438 (Del); 14 LS Cable Vs. DIT (2011) 197 Taxman 100 (Del.); 15 DIT Vs. Nokia Networks (2012) 253 CTR 417 (Del); 16 DIT Vs. Morgan Stanley 292 ITR 416 (SC); 17 DIT Vs. Honda Motors Co. Ltd. 265 Taxman 542 (SC); 18 ESS Advertising (Mauritius) S.N.C. et Compagnie (ITA. Nos. 3760 & 4542/Del/2016); 19 Anglo French Textile Company Ltd. Vs. CIT 23 ITR 101 (SC); 20 Hukum Chand Mills Ltd. Vs. CIT 103 ITR 548 (SC); 21 CIT Vs. Ahmedbhai Umarbhai & Co. 18 ITR 472 (SC); 22 The Anglo–French Textile Co. Ltd.…

DCIT, International Taxation, Circle-1(1)(1), New Delhi vs. Alcatel Lucent International, France

In the result, the appeal filed by the revenue is accordingly dismissed

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2012-13 & Assessment Year: 2013-14 & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent, France, Circle-1(1)(1), International 3, Avenue Octave Greard, Taxation, Paris, France New Delhi Pan :Aabcc4864E (Appellant) (Respondent) & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent International, Circle-1(1)(1), International France, Taxation, 3, Avenue Octave Greard, New Delhi Paris, France Pan :Aabcc4864E (Appellant) (Respondent) Assessee By Sh. Prashant Meharchandani, Adv. Sh. Divyansh Singh, Adv. Department By Sh. Bhuvnesh Kulshreshtha, Cit

…in law, the Ld. CIT(A) erred in deleting the addition made by the AO, after erroneously considering the claimed adequacy of compensation of Alcatel Lucent India while determining the income of the assessee, and in wrongly applying the ratio of Morgan Stanley 292 ITR 416 (SC). 1.4 That in the fact and in circumstance of the case, and in law, the Ld, CIT(A) erred in deleting the addition made by the AO by erroneously stating that he has relied on the assessee’s own International was for 2013-14. 2. The appellant craves leave to add, modify, amend or alter any ground of appeal at the time of, or before, the hearing…

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. Alcatel Lucent France, France

In the result, the appeal filed by the revenue is accordingly dismissed

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2012-13 & Assessment Year: 2013-14 & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent, France, Circle-1(1)(1), International 3, Avenue Octave Greard, Taxation, Paris, France New Delhi Pan :Aabcc4864E (Appellant) (Respondent) & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent International, Circle-1(1)(1), International France, Taxation, 3, Avenue Octave Greard, New Delhi Paris, France Pan :Aabcc4864E (Appellant) (Respondent) Assessee By Sh. Prashant Meharchandani, Adv. Sh. Divyansh Singh, Adv. Department By Sh. Bhuvnesh Kulshreshtha, Cit

…in law, the Ld. CIT(A) erred in deleting the addition made by the AO, after erroneously considering the claimed adequacy of compensation of Alcatel Lucent India while determining the income of the assessee, and in wrongly applying the ratio of Morgan Stanley 292 ITR 416 (SC). 1.4 That in the fact and in circumstance of the case, and in law, the Ld, CIT(A) erred in deleting the addition made by the AO by erroneously stating that he has relied on the assessee’s own International was for 2013-14. 2. The appellant craves leave to add, modify, amend or alter any ground of appeal at the time of, or before, the hearing…

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. Alcatel Lucent France, France

In the result, the appeal filed by the revenue is accordingly dismissed

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2012-13 & Assessment Year: 2013-14 & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent, France, Circle-1(1)(1), International 3, Avenue Octave Greard, Taxation, Paris, France New Delhi Pan :Aabcc4864E (Appellant) (Respondent) & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent International, Circle-1(1)(1), International France, Taxation, 3, Avenue Octave Greard, New Delhi Paris, France Pan :Aabcc4864E (Appellant) (Respondent) Assessee By Sh. Prashant Meharchandani, Adv. Sh. Divyansh Singh, Adv. Department By Sh. Bhuvnesh Kulshreshtha, Cit

…in law, the Ld. CIT(A) erred in deleting the addition made by the AO, after erroneously considering the claimed adequacy of compensation of Alcatel Lucent India while determining the income of the assessee, and in wrongly applying the ratio of Morgan Stanley 292 ITR 416 (SC). 1.4 That in the fact and in circumstance of the case, and in law, the Ld, CIT(A) erred in deleting the addition made by the AO by erroneously stating that he has relied on the assessee’s own International was for 2013-14. 2. The appellant craves leave to add, modify, amend or alter any ground of appeal at the time of, or before, the hearing…

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. Alcatel Lucent France, France

In the result, the appeal filed by the revenue is accordingly dismissed

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2012-13 & Assessment Year: 2013-14 & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent, France, Circle-1(1)(1), International 3, Avenue Octave Greard, Taxation, Paris, France New Delhi Pan :Aabcc4864E (Appellant) (Respondent) & Assessment Year: 2014-15 Dcit, Vs. Alcatel Lucent International, Circle-1(1)(1), International France, Taxation, 3, Avenue Octave Greard, New Delhi Paris, France Pan :Aabcc4864E (Appellant) (Respondent) Assessee By Sh. Prashant Meharchandani, Adv. Sh. Divyansh Singh, Adv. Department By Sh. Bhuvnesh Kulshreshtha, Cit

…in law, the Ld. CIT(A) erred in deleting the addition made by the AO, after erroneously considering the claimed adequacy of compensation of Alcatel Lucent India while determining the income of the assessee, and in wrongly applying the ratio of Morgan Stanley 292 ITR 416 (SC). 1.4 That in the fact and in circumstance of the case, and in law, the Ld, CIT(A) erred in deleting the addition made by the AO by erroneously stating that he has relied on the assessee’s own International was for 2013-14. 2. The appellant craves leave to add, modify, amend or alter any ground of appeal at the time of, or before, the hearing…

Hyatt International Southwest Asia Ltd., Dubai vs. ACIT, Circle- 2(1)(1), New Delhi

In the result, the appeal of the assessee is allowed partly for statistical purposes

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2014-15

…ess. Thus, we find that the assessee has met the twin criterion of existence of a fixed place of business and carrying out of business from such fixed place of business as enunciated of the judgment of Hon'ble Supreme Court in the case of Morgan Stanley & Co. 292 ITR 416 (SC). The claim of the assessee that they did not have a place at their disposal cannot be 5 accepted in view of the judgment of Hon'ble Supreme Court in the case of Formula One World Championships Ltd. 394 ITR 80, in the case of Azadi Bachao Andolan and also E-funds IT Solutions 86 Taxman 240. The facts on record undisputedly prove that the prem…

Jas Forwarding Worldwide Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

…en if there is a business connection, no further income can be chargeable to tax in India on account of PE since the transaction between the Assessee and its AE has been found at arm's length. Hon'ble Supreme Court has held as under in case of Morgan Stanley (292 ITR 416 (SC)). "...As regards attribution of further profits to the PE of MSCo where the transaction between the two are held to be at arm's length, we hold that the ruling is correct in principle provided that an associated enterprise (that also constitutes a PE) is remunerated on arm's length basis taking into account all the risk-taking functions of t…

Jas Forwarding Worldwide Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

…en if there is a business connection, no further income can be chargeable to tax in India on account of PE since the transaction between the Assessee and its AE has been found at arm's length. Hon'ble Supreme Court has held as under in case of Morgan Stanley (292 ITR 416 (SC)). "...As regards attribution of further profits to the PE of MSCo where the transaction between the two are held to be at arm's length, we hold that the ruling is correct in principle provided that an associated enterprise (that also constitutes a PE) is remunerated on arm's length basis taking into account all the risk-taking functions of t…

Zte Corporation, Gurgaon vs. DCIT (International Taxation), Gurgaon

…o attribution should be made. The submission is that TPO in the case of ZTE India has accepted that the payment for market support service is at arm’s length and, therefore, in view of the decision of Hon’ble Supreme Court in the case of DITVs. Morgan Stanley 292 ITR 416, since the assessee had been remunerated on an arm’s length basis, no further profit could be attributed. We are unable to accept this plea of ld. counsel of the assessee because it is only after the survey operations were carried out that extensive involvement of PE came to light." 24. We also note that the decision of Tribunal in Assessee's ow…

Zte Corporation, China vs. JCIT (OSD) International Taxation, Gurgaon

…o attribution should be made. The submission is that TPO in the case of ZTE India has accepted that the payment for market support service is at arm’s length and, therefore, in view of the decision of Hon’ble Supreme Court in the case of DITVs. Morgan Stanley 292 ITR 416, since the assessee had been remunerated on an arm’s length basis, no further profit could be attributed. We are unable to accept this plea of ld. counsel of the assessee because it is only after the survey operations were carried out that extensive involvement of PE came to light." 24. We also note that the decision of Tribunal in Assessee's ow…

DCIT, Int. Tax., .Circle Gurgaon, Gurgaon vs. Zte Corporation, China

…o attribution should be made. The submission is that TPO in the case of ZTE India has accepted that the payment for market support service is at arm’s length and, therefore, in view of the decision of Hon’ble Supreme Court in the case of DITVs. Morgan Stanley 292 ITR 416, since the assessee had been remunerated on an arm’s length basis, no further profit could be attributed. We are unable to accept this plea of ld. counsel of the assessee because it is only after the survey operations were carried out that extensive involvement of PE came to light." 24. We also note that the decision of Tribunal in Assessee's ow…

DCIT, International Taxation, Circle-1(1)(1), New Delhi vs. Alcatel Lucent International, France

In the result, the appeal filed by the revenue is accordingly dismissed

Bench: Sh. N. K. Billaiya & Sh. Sudhanshu Srivastava(Through Video Conferencing) Assessment Year: 2013-14 Dcit, International Alcatel Lucent Taxation, Circle 1(1) (1) Vs International France New Delhi 3, Avenue Octave Greard, Paris (France) France (Appellant) (Respondent)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) Assessment Year: 2013-14 DCIT, International Alcatel Lucent Taxation, Circle 1(1) (1) Vs International France New Delhi 3, Avenue Octave Greard, Paris (France) France (APPELLANT) (RESPONDENT) Appellant by Dr. Prabha Kant, CIT Respondent by Sh. Kamal Shawney, Advocate Sh. Divyansh Singh, Advocate Date of hearing: 30/06/2021 Date of Pronouncement: 30/06/2021 ORDER PER N. K. BILLAIYA, AM: This appeal by the revenue is preferred…