DIT v. Nokia Networks OY

358 ITR 259High Court2013#287 most cited

What is DIT v. Nokia Networks OY authority for?

Payments for the supply of software along with telecom equipment are not in the nature of royalty if they are for the use of a copyrighted article, not the copyright itself. Such payments are not taxable in India in the absence of a Permanent Establishment (PE).

276

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2025.

Also referred to as

DIT v. Nokia Networks OY · Nokia Networks OY · Section 9(1)(vi) · Section 195 · software payments · royalty income · fees for technical services · copyrighted article vs copyright · Permanent Establishment · DTAA · make available clause

Also reported as

212 Taxmann 6825 Taxmann.com 225253 CTR 417

Sections most often in play

Section 1961Section 143(3)Section 9(1)(vi)Section 144C(13)Section 234BSection 195Section 9(1)(vii)Section 270A

Issues it is cited on

section 9(1)(v)section 9(2)make available clausecopyrighted articlesection 44bbsection 44bsection 90(2)fees for included servicessection 9(1)(vi)fees for technical servicescomputer softwaresection 9(1)(vii)

Judgments citing DIT v. Nokia Networks OY

ADIT Intl. Taxation, Dehradun vs. M/S. Hampson Russell Ltd. Partnership., Mumbai

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

ITA 1182/DEL/2012[2007-08]Status: DisposedITAT Delhi21 Apr 2017AY 2007-08

Bench: Sh. H.S. Sidhu & Sh. O.P. Kant

Section 115ASection 44BSection 44DSection 9Section 9(1)(vi)

…er of software. He & ITA No. 1225/Del/2012 further submitted that the issue of sale of software and taxability as royalty thereon, is no more res integra in view of judgments of the Hon’ble High Court of Delhi in the case of CIT Vs. Nokia Networks Oy, (2013) 358 ITR 259 (Delhi), DIT vs. Ericsson AB, (2012) 343 ITR 470 (Del) and DIT Vs. Infrasoft Ltd. (2014) 264 CTR (Del) 329, wherein the Hon’ble High Court has held that sale of software is akin to supply of ‘copyrighted article’ and cannot come within the purview of royalty. The Ld. counsel further submitted that during the year the assessee has supplied softwar…

Addl CIT 2(3), Mumbai vs. M/S. Tata Consultancy Services Ltd., Mumbai

ITA 7513/MUM/2010[2005-06]Status: DisposedITAT Mumbai23 Mar 2017AY 2005-06

Bench: Shri C.N. Prasad () & Shri Ashwani Taneja ()

Section 195Section 40Section 9(1)(vi)

…ted [2016] 158 ITD 1 (Mumbai ITAT) (dt. February 29, 2016) vi. Quaolcomm India (P.) Ltd [2017] 77 taxmann.com 56 (Hyd ITAT) (dt. October28,2016) vii. Infrasoft Limited [2014] 264 CTR 329 (Delhi) viii. Ericsson AB [2012] 343 ITR 470 (Delhi) ix. Nokia Networks (358 ITR 259) (Delhi). 6. It was also argued by him that out of the total amount disallowed by the AO of Rs. 25,11,88,831/- a sum of Rs. 5,59,54,982/- was paid on account of purchase of software for the purpose of resale/ trading. In this transaction assessee did not obtain any licence from the supplier and earned only margin for trading or reselling of such…

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

…(supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476 , wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson , [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “ We have noticed, at th…

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

…(supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476 , wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson , [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “ We have noticed, at th…

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

…(supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476 , wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson , [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “ We have noticed, at th…

ITO (TDS) Ltu, Mumbai vs. Reliance Industreis Ltd, Mumbai

ITA 6870/MUM/2013[]Status: DisposedITAT Mumbai08 Mar 2017

Bench: Shri B.R. Baskaran (Am)& C.N. Prasad (Jm)

Section 195(2)Section 9(1)(vi)Section 9(2)

…THE INCOME TAX APPELLATE TRIBUNAL “L” Bench, Mumbai Before Shri B.R. Baskaran (AM)& C.N. Prasad (JM) I.T.A. No. 6870/Mum/2013 I.T.A. No. 6869/Mum/2013 I.T.A. No. 6877/Mum/2013 I.T.A. No. 2770/Mum/2010 I.T.A. No. 2772/Mum/2010 I.T.A. No. 2774/Mum/2010 ITO (TDS) LTU M/s. Reliance 29th floor Vs. Industries Ltd. World Trade Centre 3rd Floor Cuffe Parade Maker Chambers IV Mumbai-400 005. 222, Nariman Point Mumbai-400 021. (Appellant) (Respondent) I.T.A. No. 3222/Mum/2012 (Assessment Year : 2010-11) I.T.A. No. 3221/Mum/2012 (Assessment Year : 2009-10) M/s. Reliance ITO (TDS) LTU 29th floor Industries Ltd. Vs. 3rd…

Reliance Industries Ltd, Mumbai vs. ITO (TDS) (Ltu), Mumbai

ITA 3222/MUM/2012[2010-11]Status: DisposedITAT Mumbai08 Mar 2017AY 2010-11

Bench: Shri B.R. Baskaran (Am)& C.N. Prasad (Jm)

Section 195(2)Section 9(1)(vi)Section 9(2)

…THE INCOME TAX APPELLATE TRIBUNAL “L” Bench, Mumbai Before Shri B.R. Baskaran (AM)& C.N. Prasad (JM) I.T.A. No. 6870/Mum/2013 I.T.A. No. 6869/Mum/2013 I.T.A. No. 6877/Mum/2013 I.T.A. No. 2770/Mum/2010 I.T.A. No. 2772/Mum/2010 I.T.A. No. 2774/Mum/2010 ITO (TDS) LTU M/s. Reliance 29th floor Vs. Industries Ltd. World Trade Centre 3rd Floor Cuffe Parade Maker Chambers IV Mumbai-400 005. 222, Nariman Point Mumbai-400 021. (Appellant) (Respondent) I.T.A. No. 3222/Mum/2012 (Assessment Year : 2010-11) I.T.A. No. 3221/Mum/2012 (Assessment Year : 2009-10) M/s. Reliance ITO (TDS) LTU 29th floor Industries Ltd. Vs. 3rd…

Visteon Technical and Services Centre Pvt. Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is allowed

ITA 3143/CHNY/2016[2014-15]Status: DisposedITAT Chennai28 Feb 2017AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

Section 195Section 201(1)Section 9(1)(vi)

…copies or make alternations to the software. The assessee has relied upon the following judicial decisions of various courts. :- 3 -: 1. Infrasoft Ltd. (ITA No.1034/2009.) 2. DIT vs. Ericsson A.B. (2012) 343 ITR 470 (DEL) 3. DIT vs Nokia Networks OY (2012) (212 Taxmann 68.) 4. Financial Software and Systems Pvt. Ltd. (Chennai ITAT) (ITA No. 2190 to 2196 and 2199/Mds/2013) 5.Mumbai tribunal in the case of Novel Inc. 6.Dassault systems KK, (AAR No.821/2009.) Assessee also submitted that- “…………We submit that where it has been the intention between the two Contracting States to cover payment for computer software p…

DCIT (It) 1(1)(2), Mumbai vs. A.P. Moller Maersk A/S, Mumbai

In the result this appeal filed by the revenue stands dismissed

ITA 1798/MUM/2015[2011-12]Status: DisposedITAT Mumbai15 Feb 2017AY 2011-12

Bench: Shri Shamim Yahya & Shri Ravish Sood

For Appellant: Shri. Jasbir chauhanFor Respondent: Shri. Porul Kaka
Section 144CSection 44BSection 9(1)(i)Section 9(1)(vi)

…oller Maersk A/S ITAT No. 1798/Mum/2015 facilities/systems is a software and the payments to be royalty under the retrospectively amendment of the Act. Various Judicial precedents decided this issue by Hon'ble Delhi High Court in case of DIT vs Nokia Networks 253 CTR 417, Mumbai Tribunal in case of ADIT vs Baan Corp 71 Taxmann.com 213 and WNS Global Services (UK) Ltd. vs ADIT 52 SOT 121 wherein it has been held that any amendment is carried out under domestic law, same cannot be read into the treaty. Accordingly, we are of the view that The FACT cost represent merely allocation of cost incurred and hence in the n…

Hitt Holland Institute of Traffic Technology B. V vs. DDIT, International Taxation 1(1), Kolkata

In the result, appeal of the Assessee is partly allowed

ITA 574/KOL/2014[2010-2011]Status: DisposedITAT Kolkata08 Feb 2017AY 2010-2011

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A No. 574/Kol/2014 Assessment Year : 2010-11 Hitt Holland Institute Of Traffic -Vs.- D.D.I.T. (Intl.T)-1, Technology B.V., Kolkata Kolkata. [Pan : Aabch 5694 R] (Respondent) (Appellant) For The Appellant : Shri S.K.Agarwal, Ar For The Respondent : Shri.G.Mallikarjuna, Cit(Dr) Date Of Hearing : 02.02.2017. Date Of Pronouncement : 08.02.2017. Order Per N.V.Vasudevan, Jm

For Appellant: Shri S.K.Agarwal, ARFor Respondent: Shri.G.Mallikarjuna, CIT(DR)
Section 143(3)Section 144C(13)

…le Mumbai ITAT in the case of Galatea Limited (2016) 46 ITR(T) 690 (Mumbai ITAT), wherein following the 14 HIIT Holland Institute of Traffic Technology B.V. A.Yr..2010-11 decisions in the case of DIT v. Ericsson A.B. (supra), DIT v. Nokia Networks O.Y. (2013) 358 ITR 259 (Delhi HC), Bharati Airtel Ltd. v. Commissioner of Customs 2012 (286) ELT 270 (Bang ITAT) and CIT v. Alcatel Lucent Canada (2015) 372 lTR 476 (Delhi HC) it was held that software was required for the effective functioning of the machine, and the amount bifurcated towards the cost of software cannot be treated as 'Royalty'. The relevant extract ha…

Iljin Electric Co. Ltd, Mumbai vs. DCIT (It) Cir 2(2)(1), Mumbai

In the result, appeal for A

ITA 1023/MUM/2015[2011-12]Status: DisposedITAT Mumbai14 Oct 2016AY 2011-12

Bench: Shri Jason P. Boaz, Accoutant Member & Shri Saktijit Dey

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Jasbir Chauhan
Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 234D

…ma Harima Heavy Industries (supra) has not been diluted by the decision of Vodafone International Holdings & BV (supra) and still continues to be good law. The same view was again expressed by Hon‟ble Delhi High Court in the case of DIT vs. Nokia NetworksOY( 358 ITR 259). The decision of Sedco Forex International (supra) relied upon by the learned Departmental Representative is also not applicable due to difference in facts. As far as decision in case of Verizon Communications Singapore Pte. Ltd., v/s ITO, (361 ITR 575) (Mad.) is concerned in that case the decision of Ishikawajima Harima Heavy Industries (supra)…

Mol Corporation, Gurgaon vs. Addl. DIT, New Delhi

In the result appeal of the assessee for the assessment year

ITA 6089/DEL/2012[2007-08]Status: DisposedITAT Delhi26 Sept 2016AY 2007-08

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Nageswar Rao, AdvFor Respondent: Sh. Dheeraj Batnagar, CIT
Section 143Section 144CSection 147Section 9(1)(vi)

…the cellular operator for acquiring such property cannot be regarded as a payment by way of royalty." 6. This Court also noticed that the ITAT had in addition relied upon other judgment of this Court i.e. Director of Income Tax v. M/s. Nokia Networks, (2013) 358 ITR 259 (Delhi)'. Page 29 of 52 Similar view has been reiterated in other decisions also as relied upon by the Ld. Counsel. Now that there are catena of decisions and case laws in favour of the assessee including that of the Delhi High Court on several occasions, we are inclined to follow the decision and proposition laid down by the Hon'ble Delhi High…

Galatea Ltd, Mumbai vs. DCIT (It) RG 2(3)(2), Mumbai

In the result, the assessee’s appeal for A

ITA 5434/MUM/2015[2012-13]Status: DisposedITAT Mumbai29 Jun 2016AY 2012-13

Bench: Shri Jason P. Boaz & Shri Saktijit Daym/S. Galatea Ltd. Dcit (International Taxation) P.O. 1156, Industrial Vs. Range 2(3)(2) Area, Dalton, Israel Mumbai Pan - Aadcg8396D Appellant Respondent

For Appellant: Shri Bomi Daruwala &For Respondent: Shri Jasbir Chouhan
Section 143(3)Section 144CSection 144C(1)Section 144C(13)Section 144C(5)Section 9(1)(vi)Section 90(2)

…the assessee’s own case for A.Y. 2011-12 (supra). It was submitted that the assessee’s case finds support from the decision of the Hon'ble Bombay High Court in the case of Siemens Aktiongesellschaft (supra) (viz. Q.No. 1 and para 34) and CIT vs. Nokia Network 358 ITR 259 and the decision of the Coordinate Bench of this Tribunal in the case of B4U International Holdings Ltd. 346 ITR (Trib) 62. 5.4.1 We have heard the rival contentions of both the parties and perused and carefully considered the material on record; including the judicial decisions cited and placed reliance on. As contended by the learned A.R. for t…

Infor Global Solutions Barneveld) Bv ( Now Known As Infor (Barneveld) Bv), Hyderabad vs. DDIT (It) Cir 3(1), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 777/MUM/2013[2008-09]Status: DisposedITAT Mumbai13 Jun 2016AY 2008-09

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…td (supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476, wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson, [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “We have noticed, at the…

Infor Global Solutions Barneveld) Bv, Hyderabad vs. DDIT (It) Cir 3(1), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 776/MUM/2013[2007-08]Status: DisposedITAT Mumbai13 Jun 2016AY 2007-08

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…td (supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476, wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson, [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “We have noticed, at the…

ITO (It) TDS 3, Mumbai vs. Ssa Global Technologies (I) P.Ltd ( Formerly Knwona As Infor Global Solutions (I) P.Ltd), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 3049/MUM/2011[2007-08]Status: DisposedITAT Mumbai13 Jun 2016AY 2007-08

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…td (supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476, wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson, [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “We have noticed, at the…

ADIT (It) 3(2), Mumbai vs. Baan Global B.V. Now Known As Information Global Solution ( Barneveld) Bv, Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 7048/MUM/2010[2006-07]Status: DisposedITAT Mumbai13 Jun 2016AY 2006-07

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…td (supra) and again in the decisions of Alacatel Lucent, Canada, reported [2015] 372 ITR 476, wherein Hon’ble Delhi High Court relying upon its earlier two decisions in the case of DIT vs Ericson, [2012] 343 ITR 470 and DIT vs M/s Nokia Networks, reported in 358 ITR 259 (Del) concluded that, when assessee supplies the software which is incorporated on CD, it has applied only a tangible property and payment made for acquiring such a property cannot be regarded as payment by way of royalty. The relevant observation of the High Court in Alcatel Lucent (supra) in this regard reads as under: “We have noticed, at the…

M/S. Zte Corporation, Gurgaon vs. ADIT, New Delhi

In the result, this ground is

ITA 1109/DEL/2014[2009-10]Status: DisposedITAT Delhi30 May 2016AY 2009-10

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…e relied on the written submissions reproduced above. 71. Ld. counsel for the assessee submitted that this issue stands settled by the Hon’ble Delhi High Court in the cases of DIT Vs. Ericsson AB 343 ITR 470 (Del.); DIT Vs. Nokia Networks OY 58 ITR 259 and 358 ITR 259. He submitted that receipts on account of supply of software were integrally connected to the 71 ITA 5870/Del/12 & ors. – ZTE Corporation supply of hardware and, therefore, AO was not right in taxing such receipts as royalty. He submitted that ld. CIT(A) has rightly held that receipts from supply of software could not be taxed as royalty, relyin…

DDIT, New Delhi vs. M/S Zte Corporation

In the result, this ground is

ITA 5974/DEL/2012[2004-05]Status: DisposedITAT Delhi30 May 2016AY 2004-05

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…e relied on the written submissions reproduced above. 71. Ld. counsel for the assessee submitted that this issue stands settled by the Hon’ble Delhi High Court in the cases of DIT Vs. Ericsson AB 343 ITR 470 (Del.); DIT Vs. Nokia Networks OY 58 ITR 259 and 358 ITR 259. He submitted that receipts on account of supply of software were integrally connected to the 71 ITA 5870/Del/12 & ors. – ZTE Corporation supply of hardware and, therefore, AO was not right in taxing such receipts as royalty. He submitted that ld. CIT(A) has rightly held that receipts from supply of software could not be taxed as royalty, relyin…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

ITA 5871/DEL/2012[2005-06]Status: DisposedITAT Delhi30 May 2016AY 2005-06

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…e relied on the written submissions reproduced above. 71. Ld. counsel for the assessee submitted that this issue stands settled by the Hon’ble Delhi High Court in the cases of DIT Vs. Ericsson AB 343 ITR 470 (Del.); DIT Vs. Nokia Networks OY 58 ITR 259 and 358 ITR 259. He submitted that receipts on account of supply of software were integrally connected to the 71 ITA 5870/Del/12 & ors. – ZTE Corporation supply of hardware and, therefore, AO was not right in taxing such receipts as royalty. He submitted that ld. CIT(A) has rightly held that receipts from supply of software could not be taxed as royalty, relyin…