DIT v. Panalfa Autoelektrik Ltd.

272 CTR 117High Court2014#4097 most cited

What is DIT v. Panalfa Autoelektrik Ltd. authority for?

Fees paid for securing export orders or for procurement of machinery are not fees for technical or managerial services under section 9(1)(vii) of the Income-tax Act.

29

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2026.

Also referred to as

DIT v. Panalfa Autoelektrik Ltd. · section 9(1)(vii) · fees for technical services · managerial services · export orders · procurement of machinery · income from foreign operations

Also reported as

378 ITR 205227 Taxmann.com 351

Sections most often in play

Section 143(3)Section 234BSection 144(13)Section 234ASection 270ASection 40(a)(i)Section 9(1)(vi)Section 9(1)(vii)

Issues it is cited on

section 9(1)(i)section 9(1)(vii)section 5(2)fees for technical servicesbusiness connectionsection 9(1)section 40(a)(i)section 195permanent establishmenttax treatysection 90section 270

Judgments citing DIT v. Panalfa Autoelektrik Ltd.

Superhouse Limited, Kanpur vs. CIT, International Taxation-3, Delhi

In the result, both appeals of the assessee are allowed

ITA 356/LKW/2024[2014-15]Status: DisposedITAT Lucknow25 Feb 2026AY 2014-15

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharyita Nos. 356 & 357/Lkw/2024 A.Ys. 2014-15 & A.Ys. 2015-16 Superhouse Limited, 150 Feet Vs. The Commissioner Of Income Tax Road, Jajmau, Kanpur-208010 International Taxation-3, Delhi Pan: Aabcs9328K (Appellant) (Respondent) Assessee By: Sh. G.C. Srivastava, Adv & Sh. Kalrav Mehrotra, Adv Revenue By: Sh. R.K. Agarwal, Cit Dr Date Of Hearing: 03.12.2025 Date Of Pronouncement: 25.02.2026 O R D E R Per Nikhil Choudhary, A.M.: These Two Appeals Have Been Filed By The Assessee Against The Orders Of The Cit, (International Taxation)-3, Delhi Passed Under Section 263 Of The Act For The A.Ys. 2014-15 & 2015-16, Both Dated 29.03.2024, Wherein The Ld. Cit Has Set Aside The Earlier Orders Of The Assessing Officer For Making Of Fresh Orders In Accordance With The Directions Issued By Her. The Grounds Of Appeal Are As Under:- “1. Because, On The Facts & Circumstances Of The Case & In Law, The Ld. Cit Has Erred In Assuming Jurisdiction Under Section 263 Of The Act & In Doing So, Has Sought To Substitute His Opinion With The Order Under Section 201(1)/201(1A) Passed After Undertaking Extensive & Detailed Consideration Of The Issue By The Ito (Tds). 2. Because, On The Facts & Circumstances Of The Case & In Law, The Ld. Cit Has Erred In Assuming The Jurisdiction Under Section 263 Of The Act Without Appreciating That The Order Under Section 201(1)/201(1A) Passed By The Ito (Tds) Was Unerring & In Consonance With The Settled Principles Of Law. 3. Because, On The Facts & Circumstances Of The Case & In Law, The Impugned Order While Premised On An Illegal Assumption Of Jurisdiction, Further Suffers From Non-Application Of Mind Since The Submissions Of The Assessee Have Not Been Considered [As Illustrated Infra]. A.Ys. 2014-15 & 2015-16

For Appellant: Sh. G.C. Srivastava, Adv & Sh. KalravFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 201(1)Section 263Section 90

…. vs. ITO (1997) 62 ITD 330 wherein the ITAT held that managerial services envisaged adoption and carrying out the policies of an organization as a whole and not just procurement of machinery. In the case of DIT (Intnl) vs. Panalfa Autoelektrik Limited (2014) 272 CTR 117 (Del), the Hon’ble High Court held that services rendered in the procurement of export orders etc., cannot be treated as management services or consultancy services provided by the non-resident to the respondent of the services. The non-resident was not acting as a manager or dealing with administration. It was not controlling the policies or scr…

Skechers Sarl, Mumbai vs. The Assistant Commissioner of Income Tax 4(2)(1), Mumbai

In the result the appeal filed by the assessee stands partly

ITA 2028/MUM/2025[2022-23]Status: DisposedITAT Mumbai03 Nov 2025AY 2022-23

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 143(3)Section 144CSection 144C(13)Section 153Section 234BSection 270A

…services. Accordingly, the consideration received by the assessee was appropriately classified as 'commission' as against 'fees for technical services'. (ii) Decision of Hon'ble Delhi High Court in case of DIT vs. Panalfa Autoelektrik Ltd. Reported in [2014] (272 CTR 117), wherein Hon'ble HC, relied on various judicial precedents and OECD Report on e- commerce Tax Treaty Characterisation Issues, the relevant extracts of the same are as follows- 14. The expressions "managerial, technical and consultancy services" have not been defined either under the Act or under the General Clauses Act, 1897. The said terms have…

Hcl Software Products Limited, Delhi vs. The Assistant Commissioner of Income Tax, Circle 11(1), Delhi

In the result, the appeal filed by the assessee is allowed

ITA 2704/DEL/2024[2017-18]Status: DisposedITAT Delhi16 May 2025AY 2017-18

Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Shri Tanay Sharma, Sr. DR
Section 115JSection 143(2)Section 195Section 40Section 9(1)(vii)

…axability under the Act 5 On perusal of the aforesaid, it will be evident that the same do not partake the nature of 'managerial services', which has been lucidly explained by the Hon'ble Delhi High Court in the case of DIT vs Panalfa Autoelektrik Ltd [2014] 272 CTR 117 (Del) to be of the following nature [Refer case laws paper book Pg 1-11 @Pg 6-7]: - discovering, developing, defining and evaluating the goals of the organization and the alternative policies that will lead toward the goals; - getting the organization to adopt the policies; - scrutinizing the effectiveness of the policies that are adopted; and -…

Springer Nature Customer Service Center Gmbh, Germany vs. ACIT Circle 3(1)(2) Intl Tax New Delhi, Intl Tax New Delhi

In the result, both the appeals of the assessee are allowed

ITA 3307/DEL/2023[2021-22]Status: DisposedITAT Delhi05 Jul 2024AY 2021-22

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Himanshu Sinha, Adv. &For Respondent: Sh. Vijay B. Vasanta, CIT-DR
Section 143(3)Section 234ASection 234BSection 270A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member ITA No. 2420/Del/2023 : Asstt. Year : 2020-21 ITA No. 3307/Del/2023 : Asstt. Year : 2021-22 Springer Nature Customer Service Center Vs. ACIT, GmbH, Tiergartenstrasse, 15-17, Circle-3(1)(2), Heidelberg, Germany New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AASCS1092B Assessee by : Sh. Himanshu Sinha, Adv. & Sh. Bhoovan Dhooper, Adv. Revenue by : Sh. Vijay B. Vasanta, CIT-DR Date of Hearing: 07.05.2024 Date of Pronouncement: 05.07.2024 ORDER Per Dr. B. R. R. Kumar, Acco…

Springer Nature Customer Service Center Gmbh, Germany vs. ACIT-3(1)(2) Int. Taxation, Delhi

In the result, both the appeals of the assessee are allowed

ITA 2420/DEL/2023[2020-21]Status: DisposedITAT Delhi05 Jul 2024AY 2020-21

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Himanshu Sinha, Adv. &For Respondent: Sh. Vijay B. Vasanta, CIT-DR
Section 143(3)Section 234ASection 234BSection 270A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member ITA No. 2420/Del/2023 : Asstt. Year : 2020-21 ITA No. 3307/Del/2023 : Asstt. Year : 2021-22 Springer Nature Customer Service Center Vs. ACIT, GmbH, Tiergartenstrasse, 15-17, Circle-3(1)(2), Heidelberg, Germany New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AASCS1092B Assessee by : Sh. Himanshu Sinha, Adv. & Sh. Bhoovan Dhooper, Adv. Revenue by : Sh. Vijay B. Vasanta, CIT-DR Date of Hearing: 07.05.2024 Date of Pronouncement: 05.07.2024 ORDER Per Dr. B. R. R. Kumar, Acco…

ACIT, New Delhi vs. M/S Alnoor Exports, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4595/DEL/2015[2011-12]Status: DisposedITAT Delhi25 Jul 2023AY 2011-12

Bench: Shri Challa Nagendra Prasad & Dr. B.R.R. Kumarआ.अ.सं/.I.T.A No. 4595/Del/2015 िनधा"रणवष"/Assessment Year: 2011-12 Acit, M/S. Alnoor Exports, बनाम C/O. M/S. Rohit Malik & Vs. Associates, Circle : 32 (1) 1403, Chiranjeev Tower, New Delhi. 43 - Nehru Place, New Delhi – 110 019. Pan No. Aacfa2599N अपीलाथ"/ Appellant ""यथ"/ Respondent

For Appellant: Advocate
Section 195

…rranging of export sales and recovery of payments could not be regarded as fees for technical services under section 9(1)(vii) of the Act. Reliance was also placed on the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Grup ISM P. Ltd. [(2015) 378 ITR 205 (Del)] wherein the Hon’ble Delhi High Court held that where overseas enterprise acts as a liaison agent for an assessee and receives remuneration from each client successfully solicited for assessee such services cannot be said to be included within the meaning of consultancy services and would not come within the purview of the technical service…

The Commissioner of Income Tax - International Taxation -3 vs. Springer Nature Customer Services Centre Gmbh (Earlier Known As Springer Customers Centre Gmbh)

ITA/306/2023HC Delhi12 Jul 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

Section 143(1)Section 143(2)Section 143(3)Section 144C(3)(a)Section 9(1)(vi)

…ITA No.306/2023 Page 1 of 17 $~J * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment Reserved on: 25.05.2023 % Judgment Pronounced on: 12.07.2023 + ITA 306/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 ..... Appellant Through: Mr Ruchir Bhatia, Sr. Standing Counsel. versus SPRINGER NATURE CUSTOMER SERVICES CENTRE GMBH (EARLIER KNOWN AS SPRINGER CUSTOMERS CENTRE GMBH) ..... Respondent…

ACIT, Circle-10(2), New Delhi vs. Graziano Transmission India Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 397/DEL/2019[2014-15]Status: DisposedITAT Delhi11 Apr 2022AY 2014-15

Bench: Dr. B.R.R. Kumar & Ms. Astha Chandraasstt. Year: 2014-15

For Appellant: Shri Rishabh Malhotra, ARFor Respondent: Shri Mrinal Kumar Das, Sr. DR
Section 143(3)Section 195Section 40Section 9(1)(vii)

…s outside India for booking export orders and goods in pursuant to such orders are also sold outside India, no part of the income can be said to accrue or arise in India. As held by Hon'ble jurisdictional High Court in the case of PAN Alpha Auto Electric Ltd. 272 CTR 117 (Delhi) that payment of commission for exports cannot be considered as fee for technical services. It was has held that:- "25. Thus, the technical services consist of services of technical nature, when special skills or knowledge relating to technical field are required for their provision, managerial services are rendered for performing manageme…

M/S. Rajinder Kumar Aggarwal (HUF), New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2996/DEL/2016[2012-13]Status: DisposedITAT Delhi14 Oct 2021AY 2012-13

Bench: Shri Kul Bharat & Shri O.P. Kant[Through Video Conferencing] Assessment Year: 2012-13

Section 143(3)Section 195Section 40Section 9

…oreign agent for the procurement of export orders for the assessee and consequently disallowance u/s 40(a)(i) of the Income Tax Act, 1961. As pointed out by the Ld. AR the issue is covered in favour of the assessee in case of DIT Vs. Panalfa Autoelektrik Ltd. 378 ITR 205 wherein it is held that commission paid by the assessee to its foreign agent for arranging of export sales and recovery of payments could not be regarded as Fee for Technical Services u/s 9(1)(vii). In the present case, the commission was paid to ACE Trading, a non-resident agent (payee) who is a tax resident of France. The payee was simply assis…

ACIT, Circle- 14(1), New Delhi vs. Kapoor Industries Ltd., New Delhi

ITA 4215/DEL/2017[2014-15]Status: DisposedITAT Delhi29 Jan 2021AY 2014-15

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh

For Appellant: Shri R.K. Mehra, CAFor Respondent: Shri Shailesh Kumar, Senior DR
Section 195Section 40Section 9

…sion to its foreign 5 ITA No.4215/Del./2017 agents to which provisions contained u/s 195 of the Act are not applicable as per law laid down by Hon’ble Delhi High Court. 10. Hon’ble Delhi High Court in case cited as DIT vs. Panalfa Autoelektrik Ltd. (2014) 272 CTR 117 (Delhi) has decided the taxability of commission paid to foreign agent by returning following findings :- “4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: M/s. Wallace Pharmaceuticals P. Ltd. [2005] 278 ITR 97 (AAR) held that the commission payment to the non-resident company on procuring orders…

ACIT -25(2), Mumbai vs. M/S. Gepach International, Mumbai

In the result both the appeals filed by the revenue are dismissed

ITA 5943/MUM/2018[2013-14]Status: DisposedITAT Mumbai15 Sept 2020AY 2013-14

Bench: Shri Pawan Singh, Jm & Shris. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 5943 & 5942/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14 & 2014-15)

For Appellant: Ms. Samatha, DR byFor Respondent: Shri Vijay Mehta, AR
Section 143(2)Section 195Section 40Section 9

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JM & SHRIS. RIFAUR RAHMAN, AM आयकरअपीलसं./ I.T.A. No. 5943 & 5942/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14 & 2014-15) M/s Gepach International, ACIT – 25(2), B/13, Chand Society, Juhu Room no. 508, C-10, 5th बिधम/ Church Road, floor, Pratyakshkar Bhavan, Vs. Mumbai-400 049 Bandra Kurla Complex(E), Mumbai-400 051 स्थायीलेखासं./जीआइआरसं./PAN No. AAAFG5438N (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Ms. Samatha, DR by प्रत्यथीकीओरसे/Respondentby : Shri Vijay Mehta, AR 07.08.2020 Virtual Date of Hea…

ACIT (Ltu), New Delhi vs. M/S Havells India Ltd., New Delhi

In the result, appeal of the assessee is partly allowed

ITA 466/DEL/2011[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…rds ―technical services‖ in section 9(1)(vii), read with Explanation 2 comes in between the words ―managerial and consultancy services‖. b) Reference is also made to the decision of the Hon‘ble Delhi High Court in the case of DIT vs. Panalfa Autoelektrik Ltd: 272 CTR 117, wherein the Court explained the meaning of the words ―managerial‖, ―technical‖ and ―consultancy‖ services, covered within the scope of FTS under section 9(1)(vii) of the Act. Relevant extracts of the decision are as under: ―24. The OECD Report on e-commerce titled, Tax Treaty Characterization Issues arising from e- commerce: Report to Working Pa…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6073/DEL/2010[2007-08]Status: DisposedITAT Delhi25 Aug 2020AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…rds ―technical services‖ in section 9(1)(vii), read with Explanation 2 comes in between the words ―managerial and consultancy services‖. b) Reference is also made to the decision of the Hon‘ble Delhi High Court in the case of DIT vs. Panalfa Autoelektrik Ltd: 272 CTR 117, wherein the Court explained the meaning of the words ―managerial‖, ―technical‖ and ―consultancy‖ services, covered within the scope of FTS under section 9(1)(vii) of the Act. Relevant extracts of the decision are as under: ―24. The OECD Report on e-commerce titled, Tax Treaty Characterization Issues arising from e- commerce: Report to Working Pa…

M/S Havells India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6072/DEL/2010[2004-05]Status: DisposedITAT Delhi25 Aug 2020AY 2004-05

Bench: Shri Amit Shukla & Shri Prashant Maharishihavells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Circle-12(1), Civil Lines, New Delhi Cr Building Ip Estate, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Havells India Ltd, Vs. Dcit, 1/7 Ram Kishore Road, Ltu, Nbcc Plaza, Civil Lines, New Delhi Pusp Vihar, Sector-4, Saket, Pan: Aaach0351E New Delhi (Appellant) (Respondent) Acit (Ltu), Vs. Havells India Ltd, Nbcc Plaza, Pusp Vihar, Sector- 1/7 Ram Kishore Road, 4, Saket, New Delhi Civil Lines, New Delhi Pan: Aaach0351E (Appellant) (Respondent)

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Saras Kumar, Sr. DR
Section 143(3)Section 144ASection 14ASection 80H

…rds ―technical services‖ in section 9(1)(vii), read with Explanation 2 comes in between the words ―managerial and consultancy services‖. b) Reference is also made to the decision of the Hon‘ble Delhi High Court in the case of DIT vs. Panalfa Autoelektrik Ltd: 272 CTR 117, wherein the Court explained the meaning of the words ―managerial‖, ―technical‖ and ―consultancy‖ services, covered within the scope of FTS under section 9(1)(vii) of the Act. Relevant extracts of the decision are as under: ―24. The OECD Report on e-commerce titled, Tax Treaty Characterization Issues arising from e- commerce: Report to Working Pa…

M/S Ad2Pro Media Solutions Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax (International Taxation) Circle-1(1), Bangalore

In the result, all the 14 appeals filed by the assessee are allowed

ITA 490/BANG/2019[2011-12]Status: DisposedITAT Bangalore20 Mar 2020AY 2011-12

Bench: Shri A.K.Garodia & Shri P.K.Gadale(Ita Nos.490 To 503(Bang)/2019) (Assessment Years: 2011-12 To 2017-18) M/S Ad2Pro Media Solutions Pvt.Ltd., No.10, 2Nd Floor, Bannerghatta Road, J.P.Nagar-Iii Phase, Bangalore-560078 Appellant Vs The Deputy Commissioner Of Income Tax, (International Taxation) Circle-1(1), Bmtc Building, Koramangala, Bangalore-560095 Respondent

For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Vandana Sagar, CIT-DR
Section 201Section 201(1)Section 9

…nvolve actual carrying out of the services as stated in the contract. The advisory services involve advising the client how to carry out the activities 4.15 Reliance is placed on the following decisions of various courts: (i) CIT v. Grup Ism (P.) Ltd. [2015] 378 ITR 205 (Delhi); (ii) DIT v. PanalfaAutoelektrik Ltd. [2014] 227 Taxman 351 (Delhi); (iii) Adidas Sourcing Ltd. Asst. DIT (International Taxation) [2013] 21 ITR (Trib.) 697 (Delhi); (iv) Dr. Reddy Laboratories Ltd., [2016] 243 Taxman 127 (AAR — New Delhi). 4.16 The Appellant submits that, in case of Dr.Reddy Laboratories 387 ITR 337 AAR, it was held tha…

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4050/DEL/2015[2012-13]Status: DisposedITAT Delhi28 May 2019AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…) [22-06-2012] xx. Deputy Commissioner of Income-tax, Spl. Range-23, Mumbai vs. Sandoz (P.) Ltd. [2012] 23 taxmann.com 430 (Mumbai) [09-05-2012] 15. Further honourable Delhi High court in [2014] 49 taxmann.com 412 (Delhi)/[2014] 227 Taxman 351 (Delhi)/[2014] 272 CTR 117 (Delhi) in DIT V Panalfa Autoelektrik Ltd has dealt with the identical issue about taxability of commission payment u/s 9 (1) 91) and ( (1) (vii) of the act and has decided the issue as under :- “4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 IT…

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4049/DEL/2015[2011-12]Status: DisposedITAT Delhi28 May 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…) [22-06-2012] xx. Deputy Commissioner of Income-tax, Spl. Range-23, Mumbai vs. Sandoz (P.) Ltd. [2012] 23 taxmann.com 430 (Mumbai) [09-05-2012] 15. Further honourable Delhi High court in [2014] 49 taxmann.com 412 (Delhi)/[2014] 227 Taxman 351 (Delhi)/[2014] 272 CTR 117 (Delhi) in DIT V Panalfa Autoelektrik Ltd has dealt with the identical issue about taxability of commission payment u/s 9 (1) 91) and ( (1) (vii) of the act and has decided the issue as under :- “4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 IT…

Giesecke & Devrient (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal is partly allowed

ITA 2544/DEL/2014[2009-10]Status: DisposedITAT Delhi29 Mar 2019AY 2009-10

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2009-10

Section 143(3)Section 144CSection 144C(10)

…, thus, not FTS in terms of section 9 of the Act. 69. This legal position has been consistently affirmed / followed / reiterated in the following judicial precedents :- i. Director of Income-tax (International Taxation)-II vs Panalfa Autoelektrik Ltd. [2014] 272 CTR 117 (Delhi) ii. ClT v. Eon Technology (P.) Ltd. [2012] 343 ITR 366/[2011] (Delhi) iii. DCIT v Elitecore Technologies Pvt. Ltd., [2017] 80 taxmann.com 6 (Ahmedabad- Trib) iv. DCIT v Welspun Corporation., [2017] 77 tamann.com 165 (Ahmedabad- Trib) v. Pankaj A Shah v ITO, [2014] 47 taxmann.com 205 (Ahmedabad-Trib) 44 70. Based on our above detailed su…

ACIT, New Delhi vs. M/S. Rajinder Kumar Aggarwal (HUF), New Delhi

The Appeal of the Revenue is dismissed

ITA 4142/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Mar 2019AY 2010-11

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 195Section 40Section 5(2)Section 9

…oreign agent for the procurement of export orders for the assessee and consequently disallowance u/s 40(a)(i) of the Income Tax Act, 1961. As pointed out by the Ld. AR the issue is covered in favour of the assessee in case of DIT Vs. Panalfa Autoelektrik Ltd. 378 ITR 205 wherein it is held that commission paid by the assessee to its foreign agent for arranging of export sales and recovery of payments could not be regarded as Fee for Technical Services u/s 9(1)(vii). In the present case, the commission was paid to ACE Trading, a non-resident agent (payee) who is a tax resident of France. The payee was simply assis…

ACIT, New Delhi vs. M/S. Maharani Enterprises, Delhi

The appeal of the Revenue is dismissed and Cross- Objection of the assessee is allowed

ITA 5806/DEL/2014[2011-12]Status: DisposedITAT Delhi24 Jul 2018AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 142(1)Section 143(1)Section 143(2)Section 194CSection 40

…only to the payments made towards royalty. Section 9(1)(vii) It is applicable to the fees for technical services as defined in Explanation 2 which includes managerial services also. The Hon'ble Delhi High Court in the case of DIT vs Panalfa Auto Elektrik Ltd 272 CTR 117 5 (Del) (Case Law Compilation pages 7-13) held that in para 22 at page 11B Commission for arranging for export sales and recovery of payment cannot be regarded as consultancy services render by Non-Resident. Such non-resident cannot be held to be a consultant who advise or render consultancy services. The Skill, business acumen and knowledge of…

DIT v. Panalfa Autoelektrik Ltd. (272 CTR 117) — Cited in 29 Judgments | BharatTax