DIT v. Morgan Stanley Co. Inc.

BOOKING.COM B.V.,THE NETHERLANDS vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 1(1)(2), INTERNATIONAL TAXATION, DELHI

In the result, the appeal of the assessee is allowed

Bench: Shri M Balaganesh & Shri Vimal Kumarbooking.Com B.V. Vs. Acit, Circle -1(1)(2) Oosterdokskade 163, International Taxation, 1011 Dl, Amsterdam, The Civic Centre, Minto Road, Netherlands, New Delhi – 110002 Haryana 122002 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aagcb2395A Appellant .. Respondent

…disposal of the foreign enterprise and (iii) core business activities of the foreign enterprise must be carried out through such fixed place [Refer: Formula One World Championship Ltd vs. CIT: 394 ITR 80 (SC)]. 13. In the case of CIT v. eFunds IT Solution (399 ITR 34), the Hon'ble Supreme Court held that the burden of proving that a PE is constituted lies on P a g e | 10 Booking.com B.V. (AY: 2018-19) the Revenue, observing in para 10 of the judgement- "The burden of proving the fact that a foreign assessee has a PE in India... is initially on the revenue". 14. In the instant case, the assessing officer apa…

KYOCERA DOCUMENT SOLUTIONS ASIA LIMITED (FORMERLY KNOWN AS KYOCERA MITA ASIA LIMITED),HONGKONG vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE INTT TAX 2(1)(2), DELHI, DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…limited. The ld. counsel for the assessee took another argument that the transaction is only bench marked in the TP document and hence, in accordance with the decision in the case of Morgan Stanley & Co (2007) 292 ITR 416(SC), E-Funds I T Solutions (2017) 399 ITR 34(SC), attribution cannot be made to the India PE. 16. The ld. counsel for the assessee emphasized that the onus was on the Assessing Officer to establish PE of the assessee which has not been discharged and no ingredient of PE is satisfied. He relied on the decision in the case of Zscaler Inc (2025) 175 taxmann.992(Del-Tri.) available at page 421…

KYOCERA DOCUMENT SOLUTIONS ASIA LIMITED,HONG KONG vs. ACIT CIRCLE INT TAX 2(1)(2), NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…limited. The ld. counsel for the assessee took another argument that the transaction is only bench marked in the TP document and hence, in accordance with the decision in the case of Morgan Stanley & Co (2007) 292 ITR 416(SC), E-Funds I T Solutions (2017) 399 ITR 34(SC), attribution cannot be made to the India PE. 16. The ld. counsel for the assessee emphasized that the onus was on the Assessing Officer to establish PE of the assessee which has not been discharged and no ingredient of PE is satisfied. He relied on the decision in the case of Zscaler Inc (2025) 175 taxmann.992(Del-Tri.) available at page 421…

KYOCERA DOCUMENT SOLUTIONS ASIA LTD.,(FORMERLY KNOWN AS KYOCERA MITA ASIA LIMITED),HONG KONG vs. ACIT, CIRCLE INTERNATIONAL TAX 2(1)(2), DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…limited. The ld. counsel for the assessee took another argument that the transaction is only bench marked in the TP document and hence, in accordance with the decision in the case of Morgan Stanley & Co (2007) 292 ITR 416(SC), E-Funds I T Solutions (2017) 399 ITR 34(SC), attribution cannot be made to the India PE. 16. The ld. counsel for the assessee emphasized that the onus was on the Assessing Officer to establish PE of the assessee which has not been discharged and no ingredient of PE is satisfied. He relied on the decision in the case of Zscaler Inc (2025) 175 taxmann.992(Del-Tri.) available at page 421…

SAIC MOTOR CORPORATION LTD,CHINA vs. DCIT,INTERNATIONAL TAX, GURGAON

In the result, the appeal of the assessee is partly allowed

Bench: Shri Vimal Kumar & Shri Brajesh Kumar Singh[Assessment Year: 2022-23] Saic Motor Corporation Assistant Commissioner Of Income Limited, Tax, International Taxation, Gurgaon, Room No.509, Building No.1, Vs Hsiidc Building, Vanijya Nikunj, Tower No.563, Songtao Road, Udyog Vihar, Phase-V, Gurgaon, Pilot Free Trade Zone, Sanghai, Haryana-122001 China, Pan-Abfcs0870H Assessee Revenue Assessee By Shri Ajay Vohra, Sr. Adv. Shri Kunal Pandey, Adv. Revenue By Shri Rohit Garg, Cit-Dr Date Of Hearing 10.10.2025 Date Of Pronouncement 07.01.2026 Order

…f business at the disposal of the foreign enterprise in India; (ii) through which the business of the foreign enterprise is wholly or partly carried on. Reliance is placed on the decision of the Supreme Court in the case of CIT vs. eFunds IT Solu"on and Ors: 399 ITR 34 wherein the assessees namely e-Fund Corp. and e-fund IT Solu"ons Inc. were incorporated in USA. They entered into interna"onal transac"ons with their Indian subsidiary company, i.e. e-Fund India. In terms of agreement, e-Fund India performed back office opera"ons in respect of ATM management, electronic payments, decision support and risk manageme…

ORACLE SYSTEMS CORPORATION,NEW DELHI vs. DDIT, NEW DELHI

In the result, assessee’s appeals in :

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…se entities have employed local employees for cost-saving. It does not mean that the Assessee had any employee in India or furnished any services through them. The ld AR submitted that similar reasoning of Revenue in the case of E Funds IT Solutions Inc (2017 399 ITR 34(SC) stand rejected by the High Court and Supreme Court. 15. The ld AR further submitted that no AGENCY PE under Article 5(4) exists and that Article 5(4) does not apply to an Independent Agent determined under Article 5(5). An entity acting in the ordinary course of business will be regarded as dependent only if both the conditions- (i) it acts f…

ORACLE SYSTEMS CORPORATION,NEW DELHI vs. ADIT, NEW DELHI

In the result, assessee’s appeals in :

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…se entities have employed local employees for cost-saving. It does not mean that the Assessee had any employee in India or furnished any services through them. The ld AR submitted that similar reasoning of Revenue in the case of E Funds IT Solutions Inc (2017 399 ITR 34(SC) stand rejected by the High Court and Supreme Court. 15. The ld AR further submitted that no AGENCY PE under Article 5(4) exists and that Article 5(4) does not apply to an Independent Agent determined under Article 5(5). An entity acting in the ordinary course of business will be regarded as dependent only if both the conditions- (i) it acts f…

ORACLE SYSTEMS CORPORATION,NEW DELHI vs. ADIT, NEW DELHI

In the result, assessee’s appeals in :

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…se entities have employed local employees for cost-saving. It does not mean that the Assessee had any employee in India or furnished any services through them. The ld AR submitted that similar reasoning of Revenue in the case of E Funds IT Solutions Inc (2017 399 ITR 34(SC) stand rejected by the High Court and Supreme Court. 15. The ld AR further submitted that no AGENCY PE under Article 5(4) exists and that Article 5(4) does not apply to an Independent Agent determined under Article 5(5). An entity acting in the ordinary course of business will be regarded as dependent only if both the conditions- (i) it acts f…

ORACLE SYSTEMS CORPORATION,NEW DELHI vs. ADIT, NEW DELHI

In the result, assessee’s appeals in :

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…se entities have employed local employees for cost-saving. It does not mean that the Assessee had any employee in India or furnished any services through them. The ld AR submitted that similar reasoning of Revenue in the case of E Funds IT Solutions Inc (2017 399 ITR 34(SC) stand rejected by the High Court and Supreme Court. 15. The ld AR further submitted that no AGENCY PE under Article 5(4) exists and that Article 5(4) does not apply to an Independent Agent determined under Article 5(5). An entity acting in the ordinary course of business will be regarded as dependent only if both the conditions- (i) it acts f…

ORACLE SYSTEMS CORPORATION,NEW DELHI vs. ADIT, NEW DELHI

In the result, assessee’s appeals in :

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…se entities have employed local employees for cost-saving. It does not mean that the Assessee had any employee in India or furnished any services through them. The ld AR submitted that similar reasoning of Revenue in the case of E Funds IT Solutions Inc (2017 399 ITR 34(SC) stand rejected by the High Court and Supreme Court. 15. The ld AR further submitted that no AGENCY PE under Article 5(4) exists and that Article 5(4) does not apply to an Independent Agent determined under Article 5(5). An entity acting in the ordinary course of business will be regarded as dependent only if both the conditions- (i) it acts f…

COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAX-1), NEW DELHI vs. M/S EXL SERVICE.COM INC (PRESENTLY KNOWN AS EXL SERVICE COM LLC)

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

…ise in India; (ii) through which the business of the foreign enterprise is wholly or partly carried on. 18. On the issue of “fixed place of business”, we find that the facts considered by the Hon'ble Supreme Court in the case of eFunds IT Solution and Ors 399 ITR 34 are pari materia same as that of the assessee. Therefore, it would be pertinent to refer to the decision of the Hon'ble Supreme Court [supra]. The relevant findings read as under: “19. Before the Supreme Court it was argued by the Revenue that a PE of the US entities is constituted in India due to the following reasons: • Almost 40% of the…

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION-1), NEW DELHI vs. EXL SERVICE.COM INC (PRESENTLY KNOWN AS EXL SERVICE COM LLC)

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

…ise in India; (ii) through which the business of the foreign enterprise is wholly or partly carried on. 18. On the issue of “fixed place of business”, we find that the facts considered by the Hon'ble Supreme Court in the case of eFunds IT Solution and Ors 399 ITR 34 are pari materia same as that of the assessee. Therefore, it would be pertinent to refer to the decision of the Hon'ble Supreme Court [supra]. The relevant findings read as under: “19. Before the Supreme Court it was argued by the Revenue that a PE of the US entities is constituted in India due to the following reasons: • Almost 40% of the…

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAX-1), NEW DELHI vs. EXL SERVICE.COM INC (PRESENTLY KNOWN AS EXL SERVICE COM LLC)

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

…ise in India; (ii) through which the business of the foreign enterprise is wholly or partly carried on. 18. On the issue of “fixed place of business”, we find that the facts considered by the Hon'ble Supreme Court in the case of eFunds IT Solution and Ors 399 ITR 34 are pari materia same as that of the assessee. Therefore, it would be pertinent to refer to the decision of the Hon'ble Supreme Court [supra]. The relevant findings read as under: “19. Before the Supreme Court it was argued by the Revenue that a PE of the US entities is constituted in India due to the following reasons: • Almost 40% of the…

COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-1, NEW DELHI vs. CLIFFORD CHANCE PTE LTD.

The appeals are dismissed

Bench: Us Is For The Assessment Year (Ay) 2020-21 & I.T.A. 353/2025 Is For Ay 2021-22.

…54/2025 Page 11 of 30 19. He has submitted that the above judgment has been affirmed by the Supreme Court in ADIT v. E-Funds IT Solution Inc., [2017] 399 ITR 34 (SC), by relying upon another decision in DIT v. Morgan Stanley and Co., [2007] 292 ITR 416 (SC). It was observed by the Supreme Court that for constituting service permanent establishment of an enterprise in India, it is essential that such enterprise must furnish service “within India” through employees or other personnel. 20. According…

COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-1, NEW DELHI vs. CLIFFORD CHANCE PTE LTD.

The appeals are dismissed

Bench: Us Is For The Assessment Year (Ay) 2020-21 & I.T.A. 353/2025 Is For Ay 2021-22.

…54/2025 Page 11 of 30 19. He has submitted that the above judgment has been affirmed by the Supreme Court in ADIT v. E-Funds IT Solution Inc., [2017] 399 ITR 34 (SC), by relying upon another decision in DIT v. Morgan Stanley and Co., [2007] 292 ITR 416 (SC). It was observed by the Supreme Court that for constituting service permanent establishment of an enterprise in India, it is essential that such enterprise must furnish service “within India” through employees or other personnel. 20. According…

MARUTI SUZUKI INDIA LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…ce PE The principles regarding the conditions for existence of a Fixed Place of Business PE have been laid down very clearly and exhaustively by the Supreme Court in its Judgments in the case of Assistant Director of Income – Tax Vs. E-Funds I.T Solution Inc (399 ITR 34) and Formula One World Championship Ltd. Vs. CIT- ( 394 ITR 80), wherein it has been explained that, firstly, the foreign enterprise should have a clearly demarcated and defined space in India which is placed at the disposal of the foreign enterprise to use as it pleases to carry on its own business activities. Secondly, the core income earning ac…

DCIT, NEW DELHI vs. M/S. MARUTI SUZUKI INDIA LTD., NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…ce PE The principles regarding the conditions for existence of a Fixed Place of Business PE have been laid down very clearly and exhaustively by the Supreme Court in its Judgments in the case of Assistant Director of Income – Tax Vs. E-Funds I.T Solution Inc (399 ITR 34) and Formula One World Championship Ltd. Vs. CIT- ( 394 ITR 80), wherein it has been explained that, firstly, the foreign enterprise should have a clearly demarcated and defined space in India which is placed at the disposal of the foreign enterprise to use as it pleases to carry on its own business activities. Secondly, the core income earning ac…

CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC. ,UNITED STATES OF AMERICA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(2)(1), INTERNATIONAL TAXATION, DELHI

In the result, the assessee’s both appeals are allowed as above

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraita No.7727/Del/2017, A.Y. 2013-14 Ita No.7924/Del/2018, A.Y. 2014-15 Ita No.1086/Del/2022, A.Y. 2017-18 Ita No.667/Del/2023, A.Y. 2018-19 Ita No.668/Del/2023, A.Y. 2019-20 Ita No.3512/Del/2023, A.Y. 2021-22 Ita No.1892/Del/2025, A.Y. 2022-23 Concentrix Cvg Customer Deputy Commissioner Management Group Inc., (Earlier Of Income Tax, Known As ‘Convergys Customer Vs Circle - 1(2)(1), Management Group Inc.’) International Taxation, C/O Pwc Pvt. Ltd., E-2 Tower, Civic Centre Sucheta Bhawan, Minto Road Gate No. 2, 1St Floor, New Delhi 11-A, Vishnu Digambar Marg, New Delhi Pan: Aaccc8989M (Appellant) (Respondent)

…India. Permanent Establishment (PE): 9. At the outset, Shri Sachit Jolly, Sr. Counsel representing the assessee submitted that the issue of PE was squarely covered by the decision of the Hon’ble Supreme Court in the case of E-Funds IT Solution Inc reported in 399 ITR 34, wherein it had been held that the burden of proving the fact that a foreign taxpayer had a PE in India was on the Revenue. Further, the Ld. Sr. Counsel, placing emphasis on the decision of the Hon’ble Supreme Court in the case of Formula One World Championship Ltd. reported in 394 ITR 80, submitted that neither the Ld. CIT(A) nor the Ld. AO/TPO d…

ACIT,CIRCLE 1(2)(1), INTERNATIONAL TAXATION, NEW DELHI vs. CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC., USA

In the result, the assessee’s both appeals are allowed as above

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraita No.7727/Del/2017, A.Y. 2013-14 Ita No.7924/Del/2018, A.Y. 2014-15 Ita No.1086/Del/2022, A.Y. 2017-18 Ita No.667/Del/2023, A.Y. 2018-19 Ita No.668/Del/2023, A.Y. 2019-20 Ita No.3512/Del/2023, A.Y. 2021-22 Ita No.1892/Del/2025, A.Y. 2022-23 Concentrix Cvg Customer Deputy Commissioner Management Group Inc., (Earlier Of Income Tax, Known As ‘Convergys Customer Vs Circle - 1(2)(1), Management Group Inc.’) International Taxation, C/O Pwc Pvt. Ltd., E-2 Tower, Civic Centre Sucheta Bhawan, Minto Road Gate No. 2, 1St Floor, New Delhi 11-A, Vishnu Digambar Marg, New Delhi Pan: Aaccc8989M (Appellant) (Respondent)

…India. Permanent Establishment (PE): 9. At the outset, Shri Sachit Jolly, Sr. Counsel representing the assessee submitted that the issue of PE was squarely covered by the decision of the Hon’ble Supreme Court in the case of E-Funds IT Solution Inc reported in 399 ITR 34, wherein it had been held that the burden of proving the fact that a foreign taxpayer had a PE in India was on the Revenue. Further, the Ld. Sr. Counsel, placing emphasis on the decision of the Hon’ble Supreme Court in the case of Formula One World Championship Ltd. reported in 394 ITR 80, submitted that neither the Ld. CIT(A) nor the Ld. AO/TPO d…

DCIT, CIRCLE-1(2)(1) INT. TAXATION, NEW DELHI vs. CONCENTRIX CVG CUSTOMER MANAGEMENT GROUP INC., USA

In the result, the assessee's both appeals are allowed as above

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

…India. Permanent Establishment (PE): 9. At the outset, Shri Sachit Jolly, Sr. Counsel representing the assessee submitted that the issue of PE was squarely covered by the decision of the Hon'ble Supreme Court in the case of E-Funds IT Solution Inc reported in 399 ITR 34, wherein it had been held that the burden of proving the fact that a foreign taxpayer had a PE in India was on the Revenue. Further, the Ld. Sr. Counsel, placing emphasis on the decision of the Hon'ble Supreme Court in the case of Formula One World Championship Ltd. reported in 394 ITR 80, submitted that neither the Ld. CIT(A) nor the Ld. AO/TPO d…