DIT v. Morgan Stanley Co. Inc.

399 ITR 34Supreme Court of India2017#610 most cited

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

Once a transfer pricing analysis has been undertaken for an Indian associated enterprise, no further profits are attributable to it as a Permanent Establishment, thereby extinguishing the need for additional profit attribution.

162

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2018 to 2026.

Also referred to as

DIT v. Morgan Stanley · transfer pricing analysis · permanent establishment · profit attribution · associated enterprise · Section 143(3) · Section 144C · profit split method

Sections most often in play

Section 1961Section 143(3)Section 234BSection 234ASection 144C(13)Section 270ASection 9(1)(vi)Section 144C

Issues it is cited on

dependent agent pefixed place peagency peprofit split methodsection 44bbbsection 209(1)service pemake available clausesection 44bbpermanent establishmentconstruction pesection 44b

Judgments citing DIT v. Morgan Stanley Co. Inc.

Concentrix Cvg Customer Management Group Inc., United States vs. ACIT, (Int.Taxation) 1(2)(1), New Delhi

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

ITA 668/DEL/2023[2019-20]Status: DisposedITAT Delhi30 Sept 2025AY 2019-20

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)

Section 234ASection 270A

…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…

Concentrix Cvg Customer Management Group Inc., United States vs. ACIT, (Int.Taxation) 1(2)(1), New Delhi

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

ITA 667/DEL/2023[2018-19]Status: DisposedITAT Delhi30 Sept 2025AY 2018-19

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)

Section 234ASection 270A

…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…

Concentrix Cvg Customer Management Group Inc., United States of America vs. Assistant Commissioner of Income-Tax (International Taxation)- 1(2)(1), New Delhi

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

ITA 3512/DEL/2023[2021-22]Status: DisposedITAT Delhi30 Sept 2025AY 2021-22

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)

Section 234ASection 270A

…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, International Taxation, Circle-1(2)(1), New Delhi vs. Concentrix Cvg Customer Management Group Inc., United State of America

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

ITA 1281/DEL/2022[2017-18]Status: DisposedITAT Delhi30 Sept 2025AY 2017-18

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)

Section 234ASection 270A

…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…

Concentrix Cvg Customer Management Group Inc., Delhi vs. DCIT Circle-1(2)(1)International Taxation, Delhi

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

ITA 1086/DEL/2022[2017-18]Status: DisposedITAT Delhi30 Sept 2025AY 2017-18

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)

Section 234ASection 270A

…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…

Convergys Customer Management Group Inc., New Delhi vs. DCIT, Circle- 1(2)(1), International Taxation, New Delhi

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

ITA 7924/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Sept 2025AY 2014-15

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)

Section 234ASection 270A

…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(1)(1), International Taxation, New Delhi vs. Convergys Customer Management Group Inc., New Delhi

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

ITA 130/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Sept 2025AY 2013-14

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)

Section 234ASection 270A

…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…

Convergys Customer Management Group Inc., New Delhi vs. DCIT, Circle- 1(2)(1), International Taxation, New Delhi

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

ITA 7727/DEL/2017[2013-14]Status: DisposedITAT Delhi30 Sept 2025AY 2013-14

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)

Section 234ASection 270A

…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…

M/S.Redington Distributions Pte Ltd., Singapore vs. ACIT, Intltaxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 894/CHNY/2025[2016-17]Status: DisposedITAT Chennai29 Jul 2025AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

M/S.Redington Distributions Pte Ltd., Singapore vs. ACIT, Intltaxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 893/CHNY/2025[2015-16]Status: DisposedITAT Chennai29 Jul 2025AY 2015-16

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

M/S. Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 892/CHNY/2025[2014-15]Status: DisposedITAT Chennai29 Jul 2025AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

M/S. Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 891/CHNY/2025[2013-14]Status: DisposedITAT Chennai29 Jul 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

M/S.Redington Distributors Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 890/CHNY/2025[2012-13]Status: DisposedITAT Chennai29 Jul 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

M/S.Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 889/CHNY/2025[2011-12]Status: DisposedITAT Chennai29 Jul 2025AY 2011-12

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…:: ancilliary support services received from the employees of RIL in India did not result in any fixed place or dependent agent PE in India. The Ld. Counsel took us through the decisions of the Hon’ble Supreme Court in the cases of E-Funds IT Solution Inc (399 ITR 34) & Morgan Stanley & Co (292 ITR 416), basis which the assessee had formed a view that it did not have a PE in India. Narrating the facts involved in the assessee’s case, the Ld. Sr Counsel argued that, the view entertained by the assessee that it did not have a PE in India was a plausible one and thus the assessee cannot be held to be guilty fo…

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

The appeals are allowed

ITA 928/DEL/2025[2022-23]Status: DisposedITAT Delhi18 Jun 2025AY 2022-23

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Ekta Jain, CIT-DR
Section 142(1)Section 143(2)Section 143(3)

…ITR 192 (Delhi). 19. We are of the considered view that the burden to prove, that assessee has a PE in India lies initially on the Revenue as held by the Hon’ble apex Court in Assistant Director of Income-tax-1, New Delhi vs. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC). As discussed above there was no discussion of ld.Tax authorites on basis of any material available in the form of two agreements, we have discussed to show that anyelement of agency was there in the respective rights and obligations of two parties. Evidence such as email record, travel itinerary etc. would not have mattered much. Further, th…

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

The appeals are allowed

ITA 3376/DEL/2023[2021-22]Status: DisposedITAT Delhi18 Jun 2025AY 2021-22

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Ekta Jain, CIT-DR
Section 142(1)Section 143(2)Section 143(3)

…ITR 192 (Delhi). 19. We are of the considered view that the burden to prove, that assessee has a PE in India lies initially on the Revenue as held by the Hon’ble apex Court in Assistant Director of Income-tax-1, New Delhi vs. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC). As discussed above there was no discussion of ld.Tax authorites on basis of any material available in the form of two agreements, we have discussed to show that anyelement of agency was there in the respective rights and obligations of two parties. Evidence such as email record, travel itinerary etc. would not have mattered much. Further, th…

Shri Vijay Singh, Gurgaon vs. ITO, Gurgaon

The appeals are allowed

ITA 928/DEL/2017[2013-14]Status: DisposedITAT Delhi01 Apr 2025AY 2013-14

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

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Ekta Jain, CIT-DR
Section 142(1)Section 143(2)Section 143(3)

…ITR 192 (Delhi). 19. We are of the considered view that the burden to prove, that assessee has a PE in India lies initially on the Revenue as held by the Hon’ble apex Court in Assistant Director of Income-tax-1, New Delhi vs. E-Funds IT Solution Inc. [2017] 399 ITR 34 (SC). As discussed above there was no discussion of ld.Tax authorites on basis of any material available in the form of two agreements, we have discussed to show that anyelement of agency was there in the respective rights and obligations of two parties. Evidence such as email record, travel itinerary etc. would not have mattered much. Further, th…

Ge Hydro France, Delhi vs. DCIT, Circle Int.Tax. 1(3)(1), New Delhi

In the result, the appeal is partly allowed

ITA 1881/DEL/2023[2020-21]Status: DisposedITAT Delhi06 Nov 2024AY 2020-21

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh[Assessment Year: 2020-21] Ge Hydro France, Deputy Commissioner Of Income A-18, 1St Floor, Okhla Tax, Industrial, Phase-Ii, Vs Circle International Tax-1(3)(1), Tehkhand, South East Delhi, Civic Centre, Okhla Industrial Estate S.O. New Delhi-110002 New Delhi-110020 Pan-Aafca1688N Assessee Revenue Assessee By Shri Ajay Vohra, Sr. Adv. & Shri Aditya Vohra, Adv. & Shri Arpit Goyal, Ca Revenue By Shri Vijay B. Vasanta, Cit-Dr & Ms.Sabiha Rizvi, Sr. Dr Date Of Hearing 09.08.2024 Date Of Pronouncement 06.11.2024

Section 143(3)Section 144C(13)Section 144C(5)Section 44B

…roves the complete non-application of mind on the part of the ld. AO. Either way, it is trite law that revenue in the instant case. Reliance in this regard is placed on the decision of Hon‟ble Supreme Court in the case of CIT vs eFunds IT Solution reported in 399 ITR 34 (SC) ; DIT vs Samsung Heavy Industries Co Ltd reported in 117 taxmann.com 870 (SC) ; decision of Hon‟ble Jurisdictional High Court in the case of DIT vs Mitsui & Co. Ltd reported in 399 ITR 505 (Del); ITA No.2085 & 2086/Del/2022 GE Hydro France decision of Hon‟ble Jurisdictional High Court in the case of National Petroleum Construction Co vs DCIT…

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

The appeal is allowed

ITA 760/DEL/2021[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

Bench: Shri Gs Pannu & Shri Anubhav Sharma

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT( DR)
Section 143(2)Section 143(3)Section 144C

…It is further submitted that the activity performed by Itochu India is not the core revenue earning activity, which is a sine quo non for creation of PE. Reliance is Page 10 of 36 ITOCHU Corporation placed on Morgan Stanley 292 ITR 416 and E-funds Solutions (399 ITR 34). 3.1.4 The Panel has considered the submission. It is noticed that the issue of permanent establishment in India in the form of assessee's 100% subsidiary Itochu India Pvt Ltd has been examined at great length by the this Panel in assessee's case for AY 2013-14 and AY 2015-16 and it was held that the assessee indeed had a PE. After applying vario…

Ab Sciex Pte Ltd, Singapore vs. ACIT, Circle Int Taxation 1(1)(1), New Delhi

In the result, the second issue which was remanded by the

ITA 1969/DEL/2022[2019-20]Status: DisposedITAT Delhi21 Mar 2024AY 2019-20

Bench: Sh. Shamim Yahya & Sh. Yogesh Kumar U.S.Ita No. 514/Del/2021, (A.Y. 2017-18) Ab Sciex Pte Ltd. Vs. Acit Block 33, 46 Marsiling Circle International Taxation Industrial Estate, 1(1)(1) Singapore. 739256 New Delhi Pan: Aanca1192P Appellant Respondent

…respect to the international transaction of inter alia sale of goods, business support services and distribution and marketing service. The Ld. Counsel has also relied on Judgment of Hon'ble Supreme Court in the case of ACIT Vs. eFunds IT Solution and ors: 399 ITR 34 and also the Judgment of Jurisdictional High Court in the case of Adobe Systems Incorporated Vs. ADIT 292 CTR 407 (Del). The Ld. Counsel has also submitted that for the Assessment Year 2015-16 and 2018-19, the Revenue has accepted the Arm’s Length nature of the functions of non-resident assessee and has not attributed any income to the alleged…