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 366,339 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

Mi Overseas Ltd., New Delhi vs. ADIT, Dehradun

In the result ITA number 5584/Del/2013 filed by the assessee for assessment year

ITA 3072/DEL/2012[2009-10]Status: DisposedITAT Dehradun08 Jun 2021AY 2009-10

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Thakur Singh Mapwal, JCIT DR
Section 263Section 44BSection 9

…ia. He referred to the decision of the honourable Supreme Court in case of Ishikawajima Harima heavy industries Ltd 288 ITR 408 (SC), CIT versus Hyundai heavy industries 291 ITR 482 (SC) DIT versus Ericsson AB 343 ITR 470 (Delhi), DIT versus Nokia networks OY 358 ITR 259 (Delhi), DIT versus LG Cable Ltd ITA 703 of 2009 dated 24/12/2010 (Delhi), DIT versus Xelo Pty Ltd 203 taxman 475 (Bombay), LS cable Ltd 331 ITR 35 (AR), Deepak Cable India Ltd 337 ITR 127, ION Geophysical Corporation versus DCIT 72 taxmann.com 298 and National petroleum construction Co versus ACIT 20 ITR (T) 545 (Delhi). He further submitted tha…

Inmarsat Global Ltd., Mumbai vs. Dy CIT (It)-2(1)92), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 7485/MUM/2019[2016-17]Status: DisposedITAT Mumbai24 Mar 2021AY 2016-17

Bench: Shri Pavan Kumar Gadale & Shree Manoj Kumar Aggarwalinmarsat Global Ltd., Vs. Dy. Cit(It)-2(1)(2) Ernst & Young Llp, R.No.1612, 17Th Floor, 14Th Floor, Ruby-29, Air India Bldg, Senapati Bapat Marg, Nariman Point, Dadar(W), Mumbai – Mumbai 400002. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaci6098K Appellant .. Respondent

For Appellant: Ms. Aarati Sathe, ARFor Respondent: Shri Vijay Kumar
Section 143(2)Section 143(3)Section 234BSection 271Section 9(1)(vi)

…nd the issue which was posed before different forums for consideration and find that it has been consistently held relying upon the decisions of the Hon'ble Delhi High Court in the cases of New Skies Satellite(2016) 382 ITR 1, DIT vs. Nokia Networks OY (2013) 358 ITR 259 and Asia Satellite Communications Co. Ltd. (supra) in the decisions of Alcatel-Lucent USA Inc. dated 25.04.2007 in ITA Nos. 7299 & 7300/ Mum/2010 for A.Y. 2005-06 and Inmarsat Global Ltd., Mumbai 2007-08, DDIT vs. Shell Information Technology International BV dated 15.03.2017 in ITA No. 5051/Mum/ 2009 & Others for A.Y. 2006-07 to 2008-09 and ADIT…

Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax

C.A. No.-008733-008734 - 2018Supreme Court02 Mar 2021

Bench: HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN

…ndependent use and it was a contract for supply of goods. Therefore, no part of the payment therefore can be classified as payment towards royalty.” (pages 501-502) 111. This judgment was followed in Director of Income Tax v. Nokia Networks OY, (2013) 358 ITR 259 [“Nokia Networks OY”],42 with the High Court of Delhi, adverting, this time, to the further expanded definition of “royalty” that is contained in the retrospective amendment that inserted explanation 4 to section 9(1)(vi) of the Income Tax Act. In this case, the High Court was concerned with the Agreement between the Republic of India and th…

Reliance Corporate It Park Ltd, Navi Mumbai vs. CIT(A)_58, Pune

In the result, appeal of the assessee is allowed

ITA 7301/MUM/2016[2014-15]Status: DisposedITAT Mumbai05 Feb 2021AY 2014-15

Bench: Shri Pramod Kumar, Hon'Ble & Shri C.N. Prasad, Hon'Blereliance Corporate It Park Ltd. V. Dcit(It)-4(1)(1) Building No.4 & 5 Room No. 1712, 17Th Floor Ttc Industrial Area Air India Building, Nariman Point Thane-Belapur Road, Ghansoli Mumbai 400021 Navi Mumbai 400701 Pan: Aabcd7169H (Appellant) (Respondent) Assessee By : Dr. Sunil M. Lala : Shri Vijaykumar G Subramanyam Department By Date Of Hearing : 30.12.2020 Date Of Pronouncement : 05.02.2021 O R D E R Per C.N. Prasad (Jm)

For Appellant: Dr. Sunil M. Lala
Section 195Section 248Section 90

…for the use of copyrighted material rather than for the use of copyright. The distinction between the copyright and copyrighted article has been very well pointed out by the decisions of Hon'ble Delhi High Court in the case of DIT Vs Nokia Networks OY [(2013) 358 ITR 259 (Del)]. In this case all that the assessee gets right is to access the copyrighted material and there is no dispute about. As a matter of fact, the AO righty noted that 'royalty' has been defined as "payment of any kind received as a consideration for the use of, or right to use of, any copyright of literary, artistic or scientific work" and that…

Inmarsat Global Limited, Mumbai vs. DCIT (It) Circle 2(2)(1), Mumbai

The appeal of the assessee is allowed in terms of our aforesaid observations

ITA 7025/MUM/2018[2015-16]Status: DisposedITAT Mumbai23 Oct 2020AY 2015-16

Bench: Shri Pramod Kumar & Shri Ravish Soodinmarsat Global Limited Deputy Commissioner Of Income C/O Srbc & Associates Llp, Tax (International Taxation) 14Th Floor, The Ruby, Circle 2(2)(1), 17Th Floor, Vs. 20 Senapati Bapat Marg, Air India Building, Nariman Point, Dadar (W), Mumbai 400 028 Mumbai 400 021 Pan – Aaaci6098K (Appellant) (Respondent)

For Appellant: Shri P.J. Pardiwala &For Respondent: Shri Avaneesh Tiwari, D.R
Section 143(3)Section 253Section 9(1)(vi)

…nd the issue which was posed before different forums for consideration and find that it has been consistently held relying upon the decisions of the Hon'ble Delhi High Court in the cases of New Skies Satellite(2016) 382 ITR 1, DIT vs. Nokia Networks OY (2013) 358 ITR 259 and Asia Satellite Communications Co. Ltd. (supra) in the decisions of Alcatel-Lucent USA Inc. dated 25.04.2007 in ITA Nos. 7299 & 7300/ Mum/2010 for A.Y. 2005-06 and 2007-08, DDIT vs. Shell Information Technology International BV dated 15.03.2017 in ITA No. 5051/Mum/ 2009 & Others for A.Y. 2006-07 to 2008-09 and ADIT vs. Taj TV Ltd. dated 05.07.…

Qliktech International Ab, Banglore vs. DCIT (International Taxation), New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 1185/DEL/2019[2014-15]Status: DisposedITAT Delhi20 Oct 2020AY 2014-15

Bench: Shri R.K. Panda & Ms Suchitra Kambleasstt. Year 2014-15

For Appellant: Shri Vishal Kalra, AdvocateFor Respondent: Shri Satpal Gulati, CIT(DR)
Section 250(6)Section 9Section 9(1)(vi)

…medium through which such right is taxable as royalty. We find the Tribunal after considering various decisions including the decision of Hon’ble Delhi High Court in the case of DCIT Vs Infrasoft Ltd. 264 CTR 329 and in the case of DIT Vs M/s Nokia Networks (358 ITR 259) has decided the issue as under :- “6. In this background the points to be adjudicated would be 14 Qliktech International AB vs. DCIT a) Whether the receipts from sale of software be treated as royalty or not. b) Whether the effect of amendment in Section 9(1)(vi) brought about by the Finance Act, 2012 can be read into the treaty or not. 7. We…

DCIT (International Taxation), New Delhi vs. M/S. Telstra Singapore Pte Ltd., New Delhi

In the result, all appeals filed by the assessee are allowed and appeal

ITA 6733/DEL/2015[2012-13]Status: DisposedITAT Delhi30 Sept 2020AY 2012-13

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing]

For Appellant: Sh. S.K.Aggarwal, CA &For Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 144(3)Section 144CSection 9

…een amended in the Tax Treaty, is the receipt taxable as ‘Royalty’? 21. We further hold that the amendment, if any to the Income Tax Act cannot be applied to the Tax Treaty. The Hon’ble Delhi High Court in DIT & Others vs Nokia Networks OY & Others [2013] 358 ITR 259 (Del) held as under:- “the assessee has opted to be governed by the treaty and the language of the said treaty differs from the amended Section 9 of the Act. It is categorically held in CIT vs Siemens Aktiongesellschaft 310 ITR 320 (Bom) that the amendments cannot be read into the Treaty.” 22. The Hon’ble Bombay High Court in CIT vs Reliance In…

M/S Telstra Singapore Pte. Ltd., Singapore vs. DCIT, New Delhi

In the result, all appeals filed by the assessee are allowed and appeal

ITA 286/DEL/2016[2012-13]Status: DisposedITAT Delhi30 Sept 2020AY 2012-13

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing]

For Appellant: Sh. S.K.Aggarwal, CA &For Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 144(3)Section 144CSection 9

…een amended in the Tax Treaty, is the receipt taxable as ‘Royalty’? 21. We further hold that the amendment, if any to the Income Tax Act cannot be applied to the Tax Treaty. The Hon’ble Delhi High Court in DIT & Others vs Nokia Networks OY & Others [2013] 358 ITR 259 (Del) held as under:- “the assessee has opted to be governed by the treaty and the language of the said treaty differs from the amended Section 9 of the Act. It is categorically held in CIT vs Siemens Aktiongesellschaft 310 ITR 320 (Bom) that the amendments cannot be read into the Treaty.” 22. The Hon’ble Bombay High Court in CIT vs Reliance In…

Telstra Singapore Pte. Ltd, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

In the result, all appeals filed by the assessee are allowed and appeal

ITA 1548/DEL/2015[2011-12]Status: DisposedITAT Delhi30 Sept 2020AY 2011-12

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing]

For Appellant: Sh. S.K.Aggarwal, CA &For Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 144(3)Section 144CSection 9

…een amended in the Tax Treaty, is the receipt taxable as ‘Royalty’? 21. We further hold that the amendment, if any to the Income Tax Act cannot be applied to the Tax Treaty. The Hon’ble Delhi High Court in DIT & Others vs Nokia Networks OY & Others [2013] 358 ITR 259 (Del) held as under:- “the assessee has opted to be governed by the treaty and the language of the said treaty differs from the amended Section 9 of the Act. It is categorically held in CIT vs Siemens Aktiongesellschaft 310 ITR 320 (Bom) that the amendments cannot be read into the Treaty.” 22. The Hon’ble Bombay High Court in CIT vs Reliance In…

Telstra Singapore Pte. Ltd, Singapore vs. DCIT (International Taxation), New Delhi

In the result, all appeals filed by the assessee are allowed and appeal

ITA 3020/DEL/2017[2014-15]Status: DisposedITAT Delhi30 Sept 2020AY 2014-15

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing]

For Appellant: Sh. S.K.Aggarwal, CA &For Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 144(3)Section 144CSection 9

…een amended in the Tax Treaty, is the receipt taxable as ‘Royalty’? 21. We further hold that the amendment, if any to the Income Tax Act cannot be applied to the Tax Treaty. The Hon’ble Delhi High Court in DIT & Others vs Nokia Networks OY & Others [2013] 358 ITR 259 (Del) held as under:- “the assessee has opted to be governed by the treaty and the language of the said treaty differs from the amended Section 9 of the Act. It is categorically held in CIT vs Siemens Aktiongesellschaft 310 ITR 320 (Bom) that the amendments cannot be read into the Treaty.” 22. The Hon’ble Bombay High Court in CIT vs Reliance In…

Steria (India) Ltd., Noida vs. Addl. CIT, Spl. Range- 8, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 5745/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Sept 2020AY 2014-15

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…nics (supra) is misplaced. PCIT vs. M. Tech India P. Ltd.: 381 ITR 31 - Ericsson A.B. vs. DIT: 343 ITR 470 - Alcatel Lucent Canada vs. CIT: 372 ITR 476 - Page 90 of 95 CIT vs. Dynamic Vertical Software India (P) Ltd.: 332 ITR - 222 DIT v. Nokia Network, OY: 253 CTR 417 - The aforesaid distinction between copyright and copyrighted - article has also been approved by the Hon‟ble Tribunal in ITA No. 6687/Del/2019 vide order dated 01.05.2020, in appellant‟s own case for assessment year 2015-16, wherein disallowance made on identical facts was deleted. The pertinent findings recorded by the Tribunal are reproduced…

M/S Steria Ndia Ltd., Noida vs. Addl CIT, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 741/DEL/2017[2012-13]Status: DisposedITAT Delhi28 Sept 2020AY 2012-13

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…nics (supra) is misplaced. PCIT vs. M. Tech India P. Ltd.: 381 ITR 31 - Ericsson A.B. vs. DIT: 343 ITR 470 - Alcatel Lucent Canada vs. CIT: 372 ITR 476 - Page 90 of 95 CIT vs. Dynamic Vertical Software India (P) Ltd.: 332 ITR - 222 DIT v. Nokia Network, OY: 253 CTR 417 - The aforesaid distinction between copyright and copyrighted - article has also been approved by the Hon‟ble Tribunal in ITA No. 6687/Del/2019 vide order dated 01.05.2020, in appellant‟s own case for assessment year 2015-16, wherein disallowance made on identical facts was deleted. The pertinent findings recorded by the Tribunal are reproduced…

Steria India Ltd., Noida vs. Addl.CIT, Speciaql Range-8, New Delhi

In the result ITA number 5745/del/2018 for assessment year 2014 – 15

ITA 3992/DEL/2017[2013-14]Status: DisposedITAT Delhi28 Sept 2020AY 2013-14

Bench: Shri Kuldip Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…nics (supra) is misplaced. PCIT vs. M. Tech India P. Ltd.: 381 ITR 31 - Ericsson A.B. vs. DIT: 343 ITR 470 - Alcatel Lucent Canada vs. CIT: 372 ITR 476 - Page 90 of 95 CIT vs. Dynamic Vertical Software India (P) Ltd.: 332 ITR - 222 DIT v. Nokia Network, OY: 253 CTR 417 - The aforesaid distinction between copyright and copyrighted - article has also been approved by the Hon‟ble Tribunal in ITA No. 6687/Del/2019 vide order dated 01.05.2020, in appellant‟s own case for assessment year 2015-16, wherein disallowance made on identical facts was deleted. The pertinent findings recorded by the Tribunal are reproduced…

Symantec Asia Pacific Pte Ltd., Singapore vs. DCIT (International Taxation), New Delhi

In the result, the appeal of the assessee is allowed

ITA 1000/DEL/2017[2013-14]Status: DisposedITAT Delhi31 Aug 2020AY 2013-14

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am [Through Video Conferencing] आयकर अपील सं. / Ita No.1000/Del/2017 "नधा"रण वष" /Assessment Year 2013-14 Symantec Asia Pacific Pte. Ltd., 6 Temasek Boulevard, #12-01, Suntec Tower Four, Singapore 038986 ..........अपीलाथ"/Appellant Pan-Aaocs1828F Vs The Dcit (International Taxation), Circle-3(1)(2), Room No.419, Block E-2, Civic Centre, …………. ""यथ" / Respondent J.L.N.Marg, New Delhi-110002. अपीलाथ" क" ओर से / Appellant By : Sh. Nageshwar Rao, Adv. & Ms. Deepika Aggarwal, Adv. ""यथ" क" ओर से / Respondent By : Sh. Satpal Gulati, Cit Dr

For Appellant: Sh. Nageshwar Rao, Adv. &For Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 253(1)Section 271(1)(c)Section 9(1)(vi)

…f the Explanation would arise only when payment is to be treated as "royalty" within the meaning of clause (vi) or "fee for technical services" as provided in clause (vii) of the Act.” [[ 29. The Hon’ble High Court of Delhi in DIT Vs. Nokia Networks OY (2013) 358 ITR 259 (Del) had held that Explanation 4 was added to section 9(1)(vi) of the Act by Finance Act, 2012 with retrospective effect from 01.06.1976 to provide that all consideration for use of software shall be assessable as ‘Royalty’. However, the definition in DTAA has been left unchanged. It is an admitted fact that though Explanation 5 has been inserte…

Edenred Pte Ltd, Mumbai vs. DCIT (It) 2(2)(1), Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 507/MUM/2016[2012-13]Status: DisposedITAT Mumbai20 Jul 2020AY 2012-13

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12

For Appellant: Mr. RajanVora &For Respondent: Mr. Nishant Samaiya &
Section 143(3)Section 195Section 234ASection 234BSection 234C

…is simply the contention is to rely on Article 12(3) of the said DTAA as it is more beneficial vis-à-vis the Act [Explanation 2 to section 9(1)(vi)]. Relying on the decision in the case of New Skies Satellite BV & Ors 382 ITR 114 (Delhi HC), Nokia Networks OY 358 ITR 259 (Delhi HC), it is stated by the Ld. counsel that provisions of DTAA shall prevail over provisions of the Act, if they are more beneficial. Further, it is explained that the appellant does not have a Permanent Establishment (PE) in India under the India-Singapore DTAA as the said IDC services are provided wholly from Singapore and hence, the amou…

Edenred Pte Ltd, Mumbai vs. DDIT (It) 3(2), Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 1718/MUM/2014[2010-11]Status: DisposedITAT Mumbai20 Jul 2020AY 2010-11

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12

For Appellant: Mr. RajanVora &For Respondent: Mr. Nishant Samaiya &
Section 143(3)Section 195Section 234ASection 234BSection 234C

…is simply the contention is to rely on Article 12(3) of the said DTAA as it is more beneficial vis-à-vis the Act [Explanation 2 to section 9(1)(vi)]. Relying on the decision in the case of New Skies Satellite BV & Ors 382 ITR 114 (Delhi HC), Nokia Networks OY 358 ITR 259 (Delhi HC), it is stated by the Ld. counsel that provisions of DTAA shall prevail over provisions of the Act, if they are more beneficial. Further, it is explained that the appellant does not have a Permanent Establishment (PE) in India under the India-Singapore DTAA as the said IDC services are provided wholly from Singapore and hence, the amou…

Mentor Graphics Ireland Ltd., New Delhi vs. ACIT, Circle- 2(2)(1), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3966/DEL/2017[2014-15]Status: DisposedITAT Delhi09 Jul 2020AY 2014-15

Bench: Ms. Sushma Chowla, Vp & Shri Prashant Maharishi, Am [Through Video Conferencing]

For Appellant: Sh. Tarandeep Singh, AdvFor Respondent: Sh. Satpal Gulati, CIT DR
Section 144C(3)Section 234ASection 271(1)(c)

…he decision of Hon’ble Karnataka High Court has been disagreed by Jurisdictional High Court in Infrasoft Ltd. (supra) in paras 98 & 99 of the judgement. Further, reference was also made to the decision of Hon’ble Delhi High Court in DIT vs Nokia Network OY 358 ITR 259 (Del.). The Tribunal vide para 5 at page 12 of the order dated 26.11.2018, relied on the decision of Hon’ble Jurisdictional High Court in Ericson A.B. (supra), and thereafter, referred to the findings of the Hon’ble High Court in Infrasoft Ltd. (supra) and vide paras 5.2. and 5.3 at pages 18 & 19 held as under:- 5.2 “We find that treaty provisi…

Nagravision Sa, Gurgaon vs. ACIT Circle-2(2)(2), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

ITA 9130/DEL/2019[2016-17]Status: DisposedITAT Delhi06 Jul 2020AY 2016-17

Bench: Ms. Sushma Chowla, Vp & Shri Prashant Maharishi, Am आयकर अपील सं. / Ita No.9130/Del/2019 "नधा"रण वष" / Assessment Year 2016-17

For Appellant: Sh. Deepak Chopra, AdvFor Respondent: Sh. Satpal Gulati, CIT DR
Section 143(3)Section 144C(13)Section 9(1)Section 9(1)(vi)

…of the Explanation would arise only when payment is to be treated as "royalty" within the meaning of clause (vi) or "fee for technical services" as provided in clause (vii) of the Act.” 29. The Hon’ble High Court of Delhi in DIT Vs. Nokia Networks OY (2013) 358 ITR 259 (Del) had held that Explanation 4 was added to section 9(1)(vi) of the Act by Finance Act, 2012 with retrospective effect from 01.06.1976 to Assessment Year 2016-17 provide that all consideration for use of software shall be assessable as ‘Royalty’. However, the definition in DTAA has been left unchanged. It is an admitted fact that though Expla…

M/S Shell Information Technology International Bv, Mumbai vs. Dy CIT (It) 4 (2)(1), Mumbai

In the result, appeal filed by the assessee for assessment year 2016-2017

ITA 6638/MUM/2019[2016-17]Status: DisposedITAT Mumbai06 Mar 2020AY 2016-17

Bench: Shri Pramod Kumar (Vp) & Shri Ram Lal Negi (Jm) Assessment Year: 2016-17 M/S Shell Information The Deputy Commissioner Of Technology International Bv, Income Tax (International C/O B S R & Co. Llp, Taxation)-4(2)(1), 5Th Floor, Lodha Excelus, Vs. 17Th Floor, Room No. 1708, Apollo Mills Compound, Air India Building, Nariman Point, N.M. Joshi Marg, Mahalakshmi, Mumbai - 400021 Mumbai - 400011 Pan: Aaics9091A (Appellant) (Respondent) Assessee By : Shri Madhur Agarwal (Ar) Revenue By : Shri V. Sreekar (Cit Dr) Date Of Hearing: 10/12/2019 Date Of Pronouncement: 06/03/2020

For Appellant: Shri Madhur Agarwal (AR)For Respondent: Shri V. Sreekar (CIT DR)
Section 143Section 2(24)Section 234B

…(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…

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

In the result, appeal of the assessee is partly allowed as indicated above

ITA 7283/MUM/2018[2015-16]Status: DisposedITAT Mumbai10 Jan 2020AY 2015-16

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Bledy. Cit (International Taxation) – 4(2)(1) M/S. Shell Information Technology V. Room No. 1708, 17Th Floor International Bv Air India Building, Nariman Point C/O B.S.R. & Co. Llp. Mumbai – 400 021 5Th Floor, Lodha Excelus Apollo Mills Compound, N.M. Joshi Marg Mahalakshmi, Mumbai – 400 011 Pan: Aaics9091A (Appellant) (Respondent) Assessee By : Shri Madhur Agarwal Department By : Shri V. Sreekar

For Appellant: Shri Madhur AgarwalFor Respondent: Shri V. Sreekar
Section 2(24)Section 234BSection 234DSection 244A

…(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…