DIT v. NGC Network Asia LLC

Goldman Sachs Investments ( Mauritius ) Ltd, Mumbai vs. DCIT (It) 2(3)(2), Mumbai

Bench: Shri S. Rifaur Rahman & Shri Ravish Soodgoldman Sachs Investments Deputy Commissioner Of (Mauritius) Limited, Income Tax, (International Taxation) -2(3)(2), Room No. 1702, 17Th Floor, C/O M/S Srbc & Associates Llp, 14Th Floor, The Ruby Vs. Air India Building, Nariman Point, 29 Senapati Bapat Marg, Mumbai – 400 021 Dadar (West), Mumbai – 400 028

…aforesaid contention the ld. A.R had drawn our attention to „Explanation‟ to Sec. 234C of the Act. Further, reliance was placed by him on the order of the Hon‟ble High Court of Bombay in the case of DIT (International Taxation) Vs. NGC Network Asia LLC (2009) 313 ITR 187 (Bom). 16. We have deliberated at length on the aforesaid issue under consideration and find substantial force in the claim of the ld. A.R. As per the „Explanation‟ to Sec. 234C, for the purpose of computing the interest liability therein contemplated, the tax due on the returned income has to be reduced by any tax deductible at source in accorda…

Audi Ag, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

The appeal is hereby allowed

Bench: Shri Pramod Kumar & Shri Amarjit Singhaudi Ag Deputy Commissioner Of Income-Tax, C/O Srbc & Associates Llp, (International Taxation)-1(1)(2), 14Th Floor, The Ruby, Room No. 117, 1St Floor, Senapati Bapat Marg, Vs. Scindia House, Ballard Estate, Dadar (West), Mumbai – 400 028 Mumbai- 400 038 Maharashtra.

…that income earned by assessee is not taxable in India, we direct the ITA No. 7335 Mum 2012 & 1781 Mum 2014-Audi AG 29 Assessing Officer to recompute the tax/interest by following the decision of the jurisdictional High Court in case of NGC Network Asia LLC (313 ITR 187).” ITA No.6363/Mum/2017 A.Y. 2014-15 AUDI AG Vs. DCIT(IT)-1(1)(2) 13 Subsequently, issue came before the Hon’ble ITAT in the assessment order 2011-12 in ITA No. 743/Mum/2015 and 2012-13 ITA No. 558/Mum/2016 and 2013-14 ITA No. 688/Mum/2016. Since issue has been covered by the decision of the Hon’ble ITAT for the assessment year 2009-10 and 2010…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (International Taxation)-4(2)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…ector of Income tax (International taxation) Vs. M/s Abacus International Pte. Ltd. (ITA (L) No. 2424/Mum/2010, dated 01.07.2011), by relying on its earlier order in the case of Director of Income Tax (International taxation) Vs. N.G.C Network Asia CCC (2009) 313 ITR 187 (Bom), had concluded that the Tribunal had rightly deleted the interest levied on the assessee under Sec. 234B of the Act. We thus in terms of the aforesaid observations of the Hon‟ble High Court direct the A.O to delete the interest levied on the assessee under Sec. 234B and Sec. 234C. The Grounds of appeal No. 7 & 8 raised by the assessee are a…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (It) 1(1)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…ector of Income tax (International taxation) Vs. M/s Abacus International Pte. Ltd. (ITA (L) No. 2424/Mum/2010, dated 01.07.2011), by relying on its earlier order in the case of Director of Income Tax (International taxation) Vs. N.G.C Network Asia CCC (2009) 313 ITR 187 (Bom), had concluded that the Tribunal had rightly deleted the interest levied on the assessee under Sec. 234B of the Act. We thus in terms of the aforesaid observations of the Hon‟ble High Court direct the A.O to delete the interest levied on the assessee under Sec. 234B and Sec. 234C. The Grounds of appeal No. 7 & 8 raised by the assessee are a…

Hapag Lloyd Ag, Mumbai vs. DCIT (It) Range-2 (2) (2), Mumbai

Appeal are disposed off in the same terms

Bench: Shri Pramod Kumar & Shri Ravish Soodita No. 218/Mum/2020 (Assessment Year: 2016-17)

…of the interest of Rs. 29,82,996/- levied on the assessee under Sec. 234B of the Act, we find, that the said issue is covered in favour of the assessee by the decision of the Hon’ble High Court of Bombay in the case of DDIT(IT) Vs. NGC Network Asia LLC (2009) 313 ITR 187 (Bom). In the aforesaid case, the Hon‟ble High Court had held that interest under Sec. 234B would not be applicable to a non-resident assessee, by observing as under: “5. Under the provisions of the present Act, the issue had come for consideration in the case of CIT & Anr. vs. Sedco Forex International Drilling Co. Ltd. & Ors. (2004) 186 CTR (U…

Audi Ag, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of the assessee is allowed

…dvance tax and the fact that we have already hold that income earned by assessee is not taxable in India, we direct the Assessing Officer to recompute the tax/interest by following the decision of the jurisdictional High Court in case of NGC Network Asia LLC (313 ITR 187). 29.In the result, appeal of the assessee is allowed. ITA No. 1781/Mum/2014 by assessee 30.The assessee has raised the following grounds of appeal: (a) Ground No. 1 to 12 relates to Fixed Place PE/Agency PE in India. (b) Ground No. 13 to 16 relates to attribution of income in India. (c) Ground No. 17 to 18 relates to levy of interest under secti…

Audi Ag, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of the assessee is allowed

…dvance tax and the fact that we have already hold that income earned by assessee is not taxable in India, we direct the Assessing Officer to recompute the tax/interest by following the decision of the jurisdictional High Court in case of NGC Network Asia LLC (313 ITR 187). 29.In the result, appeal of the assessee is allowed. ITA No. 1781/Mum/2014 by assessee 30.The assessee has raised the following grounds of appeal: (a) Ground No. 1 to 12 relates to Fixed Place PE/Agency PE in India. (b) Ground No. 13 to 16 relates to attribution of income in India. (c) Ground No. 17 to 18 relates to levy of interest under secti…

Audi Ag, Mumbai vs. DDIT (It) RG 1(1)(2), Mumbai

In the result, appeal of the assessee is allowed

…dvance tax and the fact that we have already hold that income earned by assessee is not taxable in India, we direct the Assessing Officer to recompute the tax/interest by following the decision of the jurisdictional High Court in case of NGC Network Asia LLC (313 ITR 187). 29.In the result, appeal of the assessee is allowed. ITA No. 1781/Mum/2014 by assessee 30.The assessee has raised the following grounds of appeal: (a) Ground No. 1 to 12 relates to Fixed Place PE/Agency PE in India. (b) Ground No. 13 to 16 relates to attribution of income in India. (c) Ground No. 17 to 18 relates to levy of interest under secti…

Rackspace, Us Inc., Usa vs. DCIT (It) -4(1)(1), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be allowed

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T. A Nos.6195 & 4920/Mum/2018 (निर्धारण वर्ा / Assessment Years: 2010-11 & 2015-16) Rackspace, Us Inc बिधम/ Dcit, (International 1 Fanatical Place, Winderest, Taxation)-4(1)(1), Mumbai Vs. Taxas, Usa Room No.1712, 17Th Floor, C/O Deloitte Haskins & Sells Air India Building, Nariman Llp, Indiabulls Finance Point, Mumbai-400021. Centre, Tower-3, 27Th- 32Nd Floor, Senapati Bapat Marg, Elphinstone Road (W), Mumbai-400013. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaecr7201H (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri Nitesh Joshi/Milin Thakore Revenue By: Ms. Neha Thakur (Sr. Dr) सुनवाई की तारीख / Date Of Hearing: 10/10/2019 घोषणा की तारीख /Date Of Pronouncement: 28/11/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Above Mentioned Appeals Against The Direction Of The Disputes Resolution Panel -2, Mumbai Dated 27.06.2018. The Assessment Was Framed By The Dcit (International Tax)- Circle 4(1)(1), Mumbai For The Relevant A.Ys. 2010-11 & 2015- 16 U/S 144C(6) R.W.S. 143(3) Of The I. T. Act. (Hereinafter ‘The Act’).

…assessee’s own case(supra) on record:- A.Y.2010-11 & 2015-16 “20. At the outset, the learned Counsel for the assessee stated that the issue is squarely covered by the decision of Hon’ble Bombay High court in the case of DIT(IT) vs. Ngc Network Asia LLC [2009] 313 ITR 187 (Bombay), wherein it is held that when a duty is cast on payer to deduct and pay the tax at source, on payer's failure to do so interest under section 234B of the Act cannot be imposed on payee assessee. Hon’ble High Court held as under: - “5. Under the provisions of the present Act, the issue had come for consideration in the case of CIT v. Sedc…

Netcracker Technology Solutions Llc, Mumbai vs. DCIT Cir (It) 3(3)(1), Mumbai

The appeal stands partly allowed

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.783/Mum/2017 (िनधा"रण वष" / Assessment Year: 2012-13) Netcracker Technology Solutions Llc Dcit- Circle-3(3)(1) (Formerly Known As Convergys Information International Taxation Management Group Inc.) Mumbai. बनाम/ C/O. Pricewater House Coopers Pvt. Ltd., Vs. Pwc House, Plot 18/A Guru Nanak Road, (Station Road) Bandra (W), Mumbai-400 050 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaccc-8990-N (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Ms. Hirali Desai-Ld.Ar ""थ"कीओरसे/Respondent By : Shri Samuel Darse-Ld. Cit-Dr सुनवाईकीतारीख/ : 01/10/2019 Date Of Hearing घोषणाकीतारीख / : 14/10/2019 Date Of Pronouncement आदेश / O R D E R

…ed three additions made by Ld. AO. Ground Nos. 2 to 4 of the appeal stands allowed. 6. In ground No.5, the assessee is contesting the levy of interest u/s 234B by relying upon the decision of Hon’ble Bombay High Court rendered in DIT V/s NGC Network Asia LLC (313 ITR 187). We find that similar issue, in the aforesaid decision of the Tribunal has also been dealt with in the following manner: - 42. Ground No. 6 relates to levy of interest under section 234B of the Act. The learned AR of the assessee submits that in the assessment order, the assessing officer levied interest under section 234B of the act amounting t…

Audi Ag, Mumbai vs. Addl DIT RG 1(1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri G.S. Pannu, Vice- & Shri Pawan Singhaudi Ag Adit Range-1(1), C/O S R B C & Associates, Aayakar Bhavan, M.K. Road, 14Th Floor, The Ruby, 29 Mumbai-400020. Senapati Bapat Marg, Vs. Dadar (West), Mumbai-400028. Pan: Aahca3173A Appellant Respondent Audi Ag Adit Range-1(1), C/O S R B C & Associates, Aayakar Bhavan, M.K. Road, 14Th Floor, The Ruby, 29 Mumbai-400020. Senapati Bapat Marg, Vs. Dadar (West), Mumbai-400028. Pan: Aahca3173A Appellant Respondent Appellant By : Shri Rajan Vora/Nimesh Vora/ Sajan Choksi (Ar) Respondent By : Shri V. Sreekar (Cit-Dr) With Nishant Samaiya (Dr) Date Of Hearing : 26.08.2019 Date Of Pronouncement : 03.09.2019 Order Under Section 254(1)Of Income Tax Act Per Pawan Singh; 1. These Two Appeal By Assessee Are Directed Against The Assessment Order Passed Under Section 143(3) Read With Section 144(C)(13) In Pursuance Of Direction Of Dispute Resolution Panel-I Under Section 144(C)(5) Dated

…t income earned by assessee is not taxable in India, we direct the 28 ITA No. 7335 Mum 2012 & 1781 Mum 2014-Audi AG Assessing Officer to recompute the tax/interest by following the decision of the jurisdictional High Court in case of NGC Network Asia LLC (313 ITR 187). 29. In the result, appeal of the assessee is allowed. ITA No. 1781/Mum/2014 by assessee 30. The assessee has raised the following grounds of appeal: (a) Ground No. 1 to 12 relates to Fixed Place PE/Agency PE in India. (b) Ground No. 13 to 16 relates to attribution of income in India. (c) Ground No. 17 to 18 relates to levy of interest under…

Netcracker Technology Solutions Inc., Mumbai vs. Asst DIT Cir (It)1(2)

In the result appeals of all the assessment years are allowed

Bench: Shri G. S. Pannu, Vice- & Shri Pawan Singh

…he NetCracker Technology Solutions Inc. provision of section 234B of the act cannot be involved. In support of his submission the learned AR of the assessee relied upon the decision of honourable Bombay High Court in case of DIT versus NGC Network Asia LLC (313 ITR 187 ) 43. On the other hand the learned AR for the revenue submits that suitable direction may be given to the assessing officer to recompute the interest as per law. 44. We have considered the rival submission of the parties and find that assessee is a foreign company and tax resident of USA and as per section 195 of the act taxes deductible at s…