DIT v. Morgan Stanley & Co.

292 ITR 416Supreme Court of India2007#210 most cited

What is DIT v. Morgan Stanley & Co. authority for?

A Permanent Establishment (PE) signifies a foreign enterprise's virtual projection into another country, with a fixed place PE existing where an MNE's business is wholly or partly carried on. A dependent agent PE requires the agent to act as such and/or have the authority to conclude contracts for the foreign enterprise under DTAA provisions.

360

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

DIT v. Morgan Stanley & Co. · Morgan Stanley PE · 292 ITR 416 · Permanent Establishment DTAA · fixed place PE · dependent agent PE · Article 5 India-USA DTAA · authority to conclude contracts PE · outsourcing MNE · service PE · agency PE

Sections most often in play

Section 143(3)Section 234B Section 144C(13)Section 234A Section 270A Section 9(1)(vi)Section 271(1)(c)Section 5

Read the full judgment

Issues it is cited on

dependent agent pe installation pe agency pe service pe fixed place pe use of equipment profit split method section 44d functional analysis far analysis make available clause section 44bb

Judgments citing DIT v. Morgan Stanley & Co.

Hyatt International-Southwest Asia Ltd vs. Deputy Commissioner of Income Tax

ITA/140/2021HC Delhi22 Dec 2023

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN

Section 143(3)Section 144CSection 260A

…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 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…

Hyatt International-Southwest Asia Ltd vs. Assistant Commissioner of Income Tax

ITA/36/2022HC Delhi22 Dec 2023

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN

Section 143(3)Section 144CSection 260A

…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 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…

Hyatt International Southwest Asia Ltd vs. Additional Director of Income Tax

ITA/219/2020HC Delhi22 Dec 2023

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN

Section 143(3)Section 144CSection 260A

…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 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…

Hyatt International Southwest Asia Ltd vs. Assistant Director of Income Tax

ITA/218/2020HC Delhi22 Dec 2023

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN

Section 143(3)Section 144CSection 260A

…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 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…

Hyatt International Southwest Asia Ltd vs. Deputy Commissioner of Income Tax

ITA/217/2020HC Delhi22 Dec 2023

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN

Section 143(3)Section 144CSection 260A

…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 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…

Adobe Systems Software Ireland Ltd, Ireland vs. ACIT, Circle 1(1)(1), International Taxation, New Delhi

Appeal is allowed in terms indicate above

ITA 804/DEL/2023[2016-17]Status: DisposedITAT Delhi22 Dec 2023AY 2016-17

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2016-17] Adobe Systems Software Ireland Vs Acit, Ltd., 406, Riverwalk, Citywest Circle-1(1)(1), Business Campus, Saggart, International Dublin 24, Ireland Taxation, Pan-Aahca7203M New Delhi. Appellant Respondent Appellant By Shri Ravi Sharma, Adv. & Ms. Shruti Khimta, Ar Respondent By Shri Vizay B.Vasanta, Cit Dr Date Of Hearing 12.12.2023 Date Of Pronouncement 22.12.2023 Order Per Kul Bharat, Jm : The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By Ld.Acit, Circle-International Taxation 1(1)(1), Delhi Dated 24.01.2023 For The Assessment Year 2016-17. 2. The Assessee Has Raised Following Grounds Of Appeal:-

…when the transaction has been found to at Arm's Length between foreign party and the Indian AE, then no further attribution is required has already been decided by the decision of the Hon'ble Supreme Court in the case of DIT v. Morgan Stanley & Co. Inc [2007] 292 ITR 416 (SC). This aspect was very much before the Ld. CIT(A) and he has dealt with the same as under:- "As regards determination of profits attributable to a PE in India (MSAS) is concerned on the basis of arm's length principle Article 7(2) is relevant. According to the AAR where there is an international transaction under which a non- resident compens…

M/S. Exl Service.Com Llc, Mumbai vs. ADIT, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 5628/DEL/2014[2005-06]Status: DisposedITAT Delhi20 Dec 2023AY 2005-06

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

…xl India has no authority to conclude any contract on behalf the US enter5pirse and all customers are based out of US and none of it is present in India. Reference is made to the decision of the Hon'ble Supreme Court in the case of Morgan Stanley & Co. Inc: 292 ITR 416 wherein it has been held as under: “MSC, a US based company was an investment bank engaged in business of providing financial advisory services, corporate lending and securities underwriting. It entered into an agreement with Morgan Stanley Advantage Services Pvt Ltd (‘MSAS’), a wholly owned Indian subsidiary for providing certain support servi…

M/S. Exl Service.Com Llc, Mumbai vs. ADIT, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 5627/DEL/2014[2004-05]Status: DisposedITAT Delhi20 Dec 2023AY 2004-05

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

…xl India has no authority to conclude any contract on behalf the US enter5pirse and all customers are based out of US and none of it is present in India. Reference is made to the decision of the Hon'ble Supreme Court in the case of Morgan Stanley & Co. Inc: 292 ITR 416 wherein it has been held as under: “MSC, a US based company was an investment bank engaged in business of providing financial advisory services, corporate lending and securities underwriting. It entered into an agreement with Morgan Stanley Advantage Services Pvt Ltd (‘MSAS’), a wholly owned Indian subsidiary for providing certain support servi…

ADIT, New Delhi vs. M/S. Exl Service.Com Inc, Usa

In the result, the appeals of the assessee in ITA Nos

ITA 4989/DEL/2014[2005-06]Status: DisposedITAT Delhi20 Dec 2023AY 2005-06

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

…xl India has no authority to conclude any contract on behalf the US enter5pirse and all customers are based out of US and none of it is present in India. Reference is made to the decision of the Hon'ble Supreme Court in the case of Morgan Stanley & Co. Inc: 292 ITR 416 wherein it has been held as under: “MSC, a US based company was an investment bank engaged in business of providing financial advisory services, corporate lending and securities underwriting. It entered into an agreement with Morgan Stanley Advantage Services Pvt Ltd (‘MSAS’), a wholly owned Indian subsidiary for providing certain support servi…

M/S. Exl Service.Com Llc, Mumbai vs. ADIT, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 3408/DEL/2014[2006-07]Status: DisposedITAT Delhi20 Dec 2023AY 2006-07

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

…xl India has no authority to conclude any contract on behalf the US enter5pirse and all customers are based out of US and none of it is present in India. Reference is made to the decision of the Hon'ble Supreme Court in the case of Morgan Stanley & Co. Inc: 292 ITR 416 wherein it has been held as under: “MSC, a US based company was an investment bank engaged in business of providing financial advisory services, corporate lending and securities underwriting. It entered into an agreement with Morgan Stanley Advantage Services Pvt Ltd (‘MSAS’), a wholly owned Indian subsidiary for providing certain support servi…

Exl Service.Com Inc, Mumbai vs. Addl. DIT Int. Taxation, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 4183/DEL/2013[2003-04]Status: DisposedITAT Delhi20 Dec 2023AY 2003-04

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

…xl India has no authority to conclude any contract on behalf the US enter5pirse and all customers are based out of US and none of it is present in India. Reference is made to the decision of the Hon'ble Supreme Court in the case of Morgan Stanley & Co. Inc: 292 ITR 416 wherein it has been held as under: “MSC, a US based company was an investment bank engaged in business of providing financial advisory services, corporate lending and securities underwriting. It entered into an agreement with Morgan Stanley Advantage Services Pvt Ltd (‘MSAS’), a wholly owned Indian subsidiary for providing certain support servi…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 735 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 733 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 736 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 746 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 732 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 734 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

The Commissioner of Income Tax - International Taxation -1 vs. Ariba Inc

ITA - 744 / 2023HC Delhi11 Dec 2023

…$~23 to 27, 35 & 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 732/2023, CM APPL. 63771/2023, 63772/2023 & 63773/2023 + ITA 733/2023, CM APPL. 63777/2023, 63778/2023 & 63779/2023 + ITA 734/2023, CM APPL. 63783/2023, 63784/2023 & 63785/2023 + ITA 735/2023, CM APPL. 63807/2023, 63808/2023 & 63809/2023 + ITA 736/2023, CM APPL. 63810/2023 & 63811/2023 + ITA 744/2023, CM APPL. 63874/2023, 63875/2023 & 63876/2023 + ITA 746/2023, CM APPL. 63887/2023, 63888/2023 & 63889/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr Ruchir Bh…

Taj Tv Ltd., Mumbai vs. Dy CIT (It) 4(1)(2), Mumbai

In the result, the appeal by the assessee is allowed, while the appeal by the Revenue is dismissed

ITA 894/MUM/2020[2013-14]Status: DisposedITAT Mumbai26 Oct 2023AY 2013-14

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Anil Sant

…on of the ITAT in the assessee's case in earlier years without considering, that while the Hon'ble ITAT had decided the issue in favour of the assessee in earlier years by placing reliance on the Hon'ble Supreme Court's decision in the case of Morgan Stanley [292 ITR 416] but the case of the assessee is distinguishable on facts from the case of Morgan Stanley. 4. On the facts and circumstance of the case and in law, the Ld CIT(A) erred in not considering that the ratio of Morgan Stanley shall be applicable only when arm's length price has been determined for all the functions and risks undertaken by Taj India, wh…

DCIT (It) 4(1)(2), Mumbai vs. Taj Tv Ltd., Mumbai

In the result, the appeal by the assessee is allowed, while the appeal by the Revenue is dismissed

ITA 1351/MUM/2020[2013-14]Status: DisposedITAT Mumbai26 Oct 2023AY 2013-14

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Anil Sant

…on of the ITAT in the assessee's case in earlier years without considering, that while the Hon'ble ITAT had decided the issue in favour of the assessee in earlier years by placing reliance on the Hon'ble Supreme Court's decision in the case of Morgan Stanley [292 ITR 416] but the case of the assessee is distinguishable on facts from the case of Morgan Stanley. 4. On the facts and circumstance of the case and in law, the Ld CIT(A) erred in not considering that the ratio of Morgan Stanley shall be applicable only when arm's length price has been determined for all the functions and risks undertaken by Taj India, wh…