DIT v. Nokia Network OY

246 CTR 422High Court2012#7784 most cited

What is DIT v. Nokia Network OY authority for?

Payments for the acquisition of a copyrighted article, such as software, do not constitute royalty under the Income-tax Act or Double Taxation Avoidance Agreements. The distinction between a copyright right and a copyrighted article is significant, with the former being taxable as royalty and the latter not.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2017 to 2023.

Also referred to as

DIT v. Ericsson A.B. · 246 CTR 422 · royalty · copyrighted article · copyright right · software · DTAA · section 9(1)(vi)

Judgments citing DIT v. Nokia Network OY

Qualcomm Incorporated, Hyderabad vs. DCIT, Circle- 3(1)(1), Intl. Taxation, New Delhi

The appeal of the assessee is allowed

ITA 7559/DEL/2018[2015-16]Status: DisposedITAT Delhi13 Jun 2023AY 2015-16

Bench: Shri G.S. Pannu & Shri Saktijit Dey

For Appellant: Sh. Percy J. Pardiwala, Sr. CounselFor Respondent: Sh. Gangadhar Panda, CIT(DR)
Section 143(3)Section 144C(13)Section 9(1)(vi)

…r the use of patents outside India cannot be held as taxable in India under the treaty." Para-13. DISTINCTION WITH DECISION OF HON'BLE HIGH COURT OF DELHI IN THE CASE OF ERICSSON A. B Further, the Jurisdiction High Court decision in the case of Ericsson A.B. [246 CTR 422 (Del)), is totally inapplicable to the facts of the present case . That in the case of Ericsson, the issues under consideration were: i.Whether Foreign Company has any business connection in India or-not? 53 ITA Nos. 7894/Del/2017 & 7559/Del/2018 and SA Nos. 309 & 304/Del/2020 ii. Whether Foreign Company has PE in India or not? iii. Whether the…

Qualcomm Incorporated, Usa vs. DCIT, Circle- 3(1)(1), Intl. Taxation, New Delhi

The appeal of the assessee is allowed

ITA 7894/DEL/2017[2014-15]Status: DisposedITAT Delhi13 Jun 2023AY 2014-15

Bench: Shri G.S. Pannu & Shri Saktijit Dey

For Appellant: Sh. Percy J. Pardiwala, Sr. CounselFor Respondent: Sh. Gangadhar Panda, CIT(DR)
Section 143(3)Section 144C(13)Section 9(1)(vi)

…r the use of patents outside India cannot be held as taxable in India under the treaty." Para-13. DISTINCTION WITH DECISION OF HON'BLE HIGH COURT OF DELHI IN THE CASE OF ERICSSON A. B Further, the Jurisdiction High Court decision in the case of Ericsson A.B. [246 CTR 422 (Del)), is totally inapplicable to the facts of the present case . That in the case of Ericsson, the issues under consideration were: i.Whether Foreign Company has any business connection in India or-not? 53 ITA Nos. 7894/Del/2017 & 7559/Del/2018 and SA Nos. 309 & 304/Del/2020 ii. Whether Foreign Company has PE in India or not? iii. Whether the…

Csg International Ltd vs. DDIT International Taxation Circle 1 (1)

In the result, the appeal of the assessee is allowed

ITA 264/DEL/2008[2003-2004]Status: DisposedITAT Delhi01 Aug 2022AY 2003-2004

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 264/Del/2008 : Asstt. Year : 2003-04 M/S Csg International Ltd. Vs Ddit, (Now Known As Comverse Kenan Uk), Circle-1(1), Adelphi House, 1-11 John Adam Intl. Taxation, Street, London Wc2N 6Ht New Delhi (Appellant) (Respondent) Pan No. Aaccc3819N

For Appellant: Sh. Salil Kapoor, Adv. &For Respondent: Ms. Sapna Bhatia, CIT DR
Section 143(3)Section 234B

…tel USA International Marketing Inc. (2009-TIOL-733- ITAT-MUM) (Mumbai ITAT)  Sonata Information Technology Ltd. vs. Addl. CIT (103 ITD 324) (Bangalore ITAT) 11. Relying on the judgment of Hon’ble jurisdictional High Court ruling in the case of Ericsson AB (246 CTR 422), it was argued that there is a distinction between the acquisition of a “copyright right” and a “copyrighted article” and the assessee supplies the software, it has supplied tangible property and the payment made by the cellular operator for acquiring such property cannot be regarded as a payment by way of royalty. 12. On the other hand, the ld…

Tata Consultancy Services Ltd, Mumbai vs. Addl CIT Ltu -1, Mumbai

In the result, Revenue’s appeal is dismissed and assessee’s appeal is partly allowed

ITA 5713/MUM/2016[2009-10]Status: DisposedITAT Mumbai30 Oct 2019AY 2009-10

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

For Appellant: Shri Porus KakaFor Respondent: Shri Manish Kumar Singh
Section 10ASection 115JSection 2(43)Section 37Section 40Section 90

…program does not amount to royalty. In this context, he relied upon the decision of the Tribunal in its own case in ITA no.7513/Mum./2010, dated 23rd March 2017, and following other decisions:– i) Intrasoft Ltd., 220 Taxman 273 (Del.); and ii) Ericson A.B., 246 CTR 422 (Del.); 13. He submitted, once the payment made is not in the nature of royalty, it can be a business profit of the payee and in the absence of a Permanent Establishment (PE) in India, it is not chargeable to tax. Hence, there was no obligation to deduct tax at source. 14. The learned Departmental Representative relying upon the observations o…

Amadeus Global Travel Distribution Sa, Spain vs. ADIT, New Delhi

The appeal of the assessee is allowed with above direction

ITA 1494/DEL/2011[2006-07]Status: DisposedITAT Delhi18 Jul 2019AY 2006-07

Bench: Shri Kuldip Singh & Shri Prashant Maharishiamadeus Global Travel Vs. Adit, Distribution Sa Circle-1(1), (Now Known As Amadeus It International Taxation, Group Sa), New Delhi Salvador De Madariaga, E- 28027, Madrid, Spain Pan: Aafca9629P (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 80HSection 9

…o. 359 of 2005, after considering the retrospective amendment to section 9(1)(vi) of the Act by Finance Act, 2012, observed that by virtue of such amendment, there was no change in the Tax Treaty and following the decision in the case of DIT vs. Ericsson A.B: 246 CTR 422, held that payment for a copyrighted article does not constitute royalty under Indo-Finland Treaty. Relevant extracts of the ruling are as under: He, thus submitted that the question of "copyrighted article" or actual copyright does not arise in the context of software both in the DTAA and in the IT Act since the right to use simpliciter of a sof…

Mgb Metro Group Buying Hk Ltd- India Liasion Office, New Delhi vs. DDIT, New Delhi

In the result, appeal of the assessee in ITA

ITA 1473/DEL/2012[2008-09]Status: DisposedITAT Delhi31 May 2018AY 2008-09

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2001-02 M/S. Parpool Ltd., Vs. Adit, C/O- Mgb Metro Group International Taxation, Buying Hk Ltd. - India Circle -1(2), New Delhi Liaison Office, 40, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent) & Ita Nos.4911/Del/2010 & 1473/Del/2012 Assessment Years: 2007-08 & 2008-09 M/S. Mgb Metro Group Vs. Dit, Buying Hk Ltd., Circle-3(1), International India Liaison Officer, 40, Taxation, Drum Shape Okhla Industrial Estate, Building, New Delhi Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent)

Section 234BSection 5Section 9

…he appellant by the judgment of the Hon’ble jurisdictional Delhi High Court in the case of DIT Vs Jacobs Civil Incorporated, Mitsubishi Corporation and Ors 330 ITR 578 (Del) and DIT Vs Ericsson AB, Ericsson Radio System AB, Metapath Software International Ltd 246 CTR 422 (Del). 5 The appellant prays for leave to add, alter, rescind from or withdraw any of the above grounds of appeal at or before the time of hearing of the appeal. 3. The grounds raised in ITA No. 4911/Del/2010 are also being more or less similar; we are not reproducing the same. 4. The briefly stated facts of the case as culled out from the order…

Parpool Ltd., New Delhi vs. ADIT, New Delhi

In the result, appeal of the assessee in ITA

ITA 1472/DEL/2012[2001-02]Status: DisposedITAT Delhi31 May 2018AY 2001-02

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2001-02 M/S. Parpool Ltd., Vs. Adit, C/O- Mgb Metro Group International Taxation, Buying Hk Ltd. - India Circle -1(2), New Delhi Liaison Office, 40, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent) & Ita Nos.4911/Del/2010 & 1473/Del/2012 Assessment Years: 2007-08 & 2008-09 M/S. Mgb Metro Group Vs. Dit, Buying Hk Ltd., Circle-3(1), International India Liaison Officer, 40, Taxation, Drum Shape Okhla Industrial Estate, Building, New Delhi Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent)

Section 234BSection 5Section 9

…he appellant by the judgment of the Hon’ble jurisdictional Delhi High Court in the case of DIT Vs Jacobs Civil Incorporated, Mitsubishi Corporation and Ors 330 ITR 578 (Del) and DIT Vs Ericsson AB, Ericsson Radio System AB, Metapath Software International Ltd 246 CTR 422 (Del). 5 The appellant prays for leave to add, alter, rescind from or withdraw any of the above grounds of appeal at or before the time of hearing of the appeal. 3. The grounds raised in ITA No. 4911/Del/2010 are also being more or less similar; we are not reproducing the same. 4. The briefly stated facts of the case as culled out from the order…

Mgb Metro Group Buying Hk Ltd., New Delhi vs. DIT, New Delhi

In the result, appeal of the assessee in ITA

ITA 4911/DEL/2010[2007-08]Status: DisposedITAT Delhi31 May 2018AY 2007-08

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2001-02 M/S. Parpool Ltd., Vs. Adit, C/O- Mgb Metro Group International Taxation, Buying Hk Ltd. - India Circle -1(2), New Delhi Liaison Office, 40, Okhla Industrial Estate, Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent) & Ita Nos.4911/Del/2010 & 1473/Del/2012 Assessment Years: 2007-08 & 2008-09 M/S. Mgb Metro Group Vs. Dit, Buying Hk Ltd., Circle-3(1), International India Liaison Officer, 40, Taxation, Drum Shape Okhla Industrial Estate, Building, New Delhi Phase-Iii, New Delhi Pan :Aaecm3289J (Appellant) (Respondent)

Section 234BSection 5Section 9

…he appellant by the judgment of the Hon’ble jurisdictional Delhi High Court in the case of DIT Vs Jacobs Civil Incorporated, Mitsubishi Corporation and Ors 330 ITR 578 (Del) and DIT Vs Ericsson AB, Ericsson Radio System AB, Metapath Software International Ltd 246 CTR 422 (Del). 5 The appellant prays for leave to add, alter, rescind from or withdraw any of the above grounds of appeal at or before the time of hearing of the appeal. 3. The grounds raised in ITA No. 4911/Del/2010 are also being more or less similar; we are not reproducing the same. 4. The briefly stated facts of the case as culled out from the order…

Shell Information Technology International Bv, Mumbai vs. DCIT (It) 4(1)(2), Mumbai

In the result, both the appeals of assessee are allowed

ITA 1203/MUM/2015[2010-11]Status: DisposedITAT Mumbai16 Nov 2017AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri G. Manjunatha, Am

For Appellant: Niraj Sheth, ARFor Respondent: Samuel Darse, DR
Section 143(3)Section 90

…v. Infrasoft Ltd [2013] 39 taxmann.com 88 (Del- HC) • ADIT v Baan Global B V [2016] (ITA 7048/Mum/2010 • CIT v. Halliburnton Export Inc. [2016] ITA 363/2016 (Del-HC) • DIT v. Nokia Network OY [2012] 25 taxmann.com225 (Del-HC) • DIT v. Ericsson A.B. [2012]246 CTR 422 (Del –HC) • DDIT v. Solid Works Corpn [2012] 18 taxmann.com 189 (Mum – Tri) • Galatea Ltd. v. DCIT [2016]67 taxmann.com 190 (Mum- Tri) • Capgemini Business Services (India) Ltd. vs. ACIT [2016] 68 taxmann.com 36 (Mum- Tri) • DDIT v. Reliance Industries Limited [2016] 69 taxmann.com 311 (Mum- Tri) • Aspect Software Inc. v. ADIT [2015] 61 taxm…

Shell Information Technology International Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, both the appeals of assessee are allowed

ITA 2204/MUM/2014[2009-10]Status: DisposedITAT Mumbai16 Nov 2017AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri G. Manjunatha, Am

For Appellant: Niraj Sheth, ARFor Respondent: Samuel Darse, DR
Section 143(3)Section 90

…v. Infrasoft Ltd [2013] 39 taxmann.com 88 (Del- HC) • ADIT v Baan Global B V [2016] (ITA 7048/Mum/2010 • CIT v. Halliburnton Export Inc. [2016] ITA 363/2016 (Del-HC) • DIT v. Nokia Network OY [2012] 25 taxmann.com225 (Del-HC) • DIT v. Ericsson A.B. [2012]246 CTR 422 (Del –HC) • DDIT v. Solid Works Corpn [2012] 18 taxmann.com 189 (Mum – Tri) • Galatea Ltd. v. DCIT [2016]67 taxmann.com 190 (Mum- Tri) • Capgemini Business Services (India) Ltd. vs. ACIT [2016] 68 taxmann.com 36 (Mum- Tri) • DDIT v. Reliance Industries Limited [2016] 69 taxmann.com 311 (Mum- Tri) • Aspect Software Inc. v. ADIT [2015] 61 taxm…

Shell Information Technology International Bv, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, the Revenue’s appeals for A

ITA 729/MUM/2012[2008-09]Status: DisposedITAT Mumbai15 Mar 2017AY 2008-09

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

For Appellant: S/Shri Rahul K Mitra, Harsh Kapadia &For Respondent: Shri Jasbir S Chouhan
Section 143(3)Section 144C

…DIT v. Infrasoft Ltd [2013] 39 taxmann.com 88 (Del- HC) • ADIT v Baan Global B V [2016] (ITA 7048/Mum/2010 • CIT v. Halliburnton Export Inc. [2016] ITA 363/2016 (Del-HC) • DIT v. Nokia Network OY [2012] 25 taxmann.com225 (Del-HC) • DIT v. Ericsson A.B. [2012]246 CTR 422 (Del –HC) • DDIT v. Solid Works Corpn [2012] 18 taxmann.com 189 (Mum – Tri) • Galatea Ltd. v. DCIT [2016]67 taxmann.com 190 (Mum- Tri) • Capgemini Business Services (India) Ltd. vs. ACIT [2016] 68 taxmann.com 36 (Mum-Tri) • DDIT v. Reliance Industries Limited [2016] 69 taxmann.com 311 (Mum- Tri) • Aspect Software Inc. v. ADIT [2015] 61 taxmann.co…

DDIT (It) 2(1), Mumbai vs. Shell Information Technology International Bv, Mumbai

In the result, the Revenue’s appeals for A

ITA 3818/MUM/2011[2007-08]Status: DisposedITAT Mumbai15 Mar 2017AY 2007-08

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

For Appellant: S/Shri Rahul K Mitra, Harsh Kapadia &For Respondent: Shri Jasbir S Chouhan
Section 143(3)Section 144C

…DIT v. Infrasoft Ltd [2013] 39 taxmann.com 88 (Del- HC) • ADIT v Baan Global B V [2016] (ITA 7048/Mum/2010 • CIT v. Halliburnton Export Inc. [2016] ITA 363/2016 (Del-HC) • DIT v. Nokia Network OY [2012] 25 taxmann.com225 (Del-HC) • DIT v. Ericsson A.B. [2012]246 CTR 422 (Del –HC) • DDIT v. Solid Works Corpn [2012] 18 taxmann.com 189 (Mum – Tri) • Galatea Ltd. v. DCIT [2016]67 taxmann.com 190 (Mum- Tri) • Capgemini Business Services (India) Ltd. vs. ACIT [2016] 68 taxmann.com 36 (Mum-Tri) • DDIT v. Reliance Industries Limited [2016] 69 taxmann.com 311 (Mum- Tri) • Aspect Software Inc. v. ADIT [2015] 61 taxmann.co…

DDIT (It)-2(1), Mumbai vs. Shell Information Technology International Bv, Mumbai

In the result, the Revenue’s appeals for A

ITA 5051/MUM/2009[2006-07]Status: DisposedITAT Mumbai15 Mar 2017AY 2006-07

Bench: Shri Amit Shukla, Jm& Shri Ashwani Taneja, Am

For Appellant: S/Shri Rahul K Mitra, Harsh Kapadia &For Respondent: Shri Jasbir S Chouhan
Section 143(3)Section 144C

…DIT v. Infrasoft Ltd [2013] 39 taxmann.com 88 (Del- HC) • ADIT v Baan Global B V [2016] (ITA 7048/Mum/2010 • CIT v. Halliburnton Export Inc. [2016] ITA 363/2016 (Del-HC) • DIT v. Nokia Network OY [2012] 25 taxmann.com225 (Del-HC) • DIT v. Ericsson A.B. [2012]246 CTR 422 (Del –HC) • DDIT v. Solid Works Corpn [2012] 18 taxmann.com 189 (Mum – Tri) • Galatea Ltd. v. DCIT [2016]67 taxmann.com 190 (Mum- Tri) • Capgemini Business Services (India) Ltd. vs. ACIT [2016] 68 taxmann.com 36 (Mum-Tri) • DDIT v. Reliance Industries Limited [2016] 69 taxmann.com 311 (Mum- Tri) • Aspect Software Inc. v. ADIT [2015] 61 taxmann.co…

Louis Vuitton India Retail Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

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

ITA 775/MUM/2015[2010-11]Status: DisposedITAT Delhi01 Mar 2017AY 2010-11

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2010-11

For Appellant: Shri Vishal Kalra, Shri Gaurav GuptaFor Respondent: Shri Peeyush Jain, CIT, DR
Section 143(3)Section 144CSection 92C

…tion of certain provisions cannot assume the character of a legislative provision so as to toy with the possibility of applying the same retrospectively. We are reminded of the decision of the Hon’ble jurisdictional High Court in DIT vs. Ericsson A.B. (2012) 246 CTR 422 (Del), in which the assessee, inter alia, relied on Instruction no. 1829 dt. 21.9.1989 to claim that no taxable event took place in India. The Revenue argued before the Hon’ble High Court that such Instruction stood withdrawn `with immediate effect’ by a later Circular No. 7 of 2009 dt. 22nd Oct., 2009, and hence the later Circular be treated…

DIT v. Nokia Network OY (246 CTR 422) — Cited in 14 Judgments | BharatTax