DIT v. Rio Tinto Technical Services

Amadeus It Group Sa, Delhi vs. Deputy Commissioner of Income-Tax, Civic Center

In the result, the appeal of the assessee in ITA No

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

…iness income. Such income is required to be computed on net basis and the said income cannot be brought to tax in India on gross basis. For this proposition, the ld. counsel for the assessee relied on the decision in the case of Rio Tinto Technical Services 340 ITR 507. The ld. counsel for the assessee also Page 3 of 13 ITA No. 1494/DEL/2025 [A.Y 2022-23] Amadeus IT Group SA Vs.The Dy. C.I.T relied on the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence [P] Ltd 432 ITR 471. 9. The ld AR submitted that in the assessment framed for assessment year 2006-07, the asses…

Amadeus It Group Sa, Spain vs. ACIT, Circle-1(1)(1) Int.Taxation, New Delhi

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

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2020-21

…computed on net basis, i.e., considering the expenses incurred to earn the income. The said income cannot be brought to tax in India on gross basis. He relied on the decision of the Hon’ble Delhi High Court in the case of DIT vs. Rio Tinto Technical Services 340 ITR 507 (Del.). He also referred to the decision of the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd. vs. CIT 432 ITR 471 (SC) wherein it has been held that payment for use of software is not in the nature of royalty under the DTAA. Referring to the history and factual matrix of the present case, the Ld. AR subm…

Amadeus It Group Sa, New Delhi vs. ACIT, Circle-1(1)(1), International Taxation, New Delhi

In the result, the appeals filed by the assessee in I

Bench: Shri Shamim Yahya & Shri Yogesh Kumar U.S.

…he Tribunal in AYs 2006-07 & 2007-08 to 2012-13. 24. It is the case of the Assessee that the payment for use of software is not in the nature of royalty under DTAA and relied the decision of Hon'ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 25. The Coordinate Bench of the Tribunal in Assessee’s own case for AYs 2007- 08 to 2012-13, which was affirmed by the Hon'ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head 'royalty' by returning following findings :- "19. The AO has held that the income received by…

Amadeus It Group Sa, New Delhi vs. ACIT, Circle 1(1)(1) International Taxation, New Delhi

In the result, the appeals filed by the assessee in I

Bench: Shri Shamim Yahya & Shri Yogesh Kumar U.S.

…he Tribunal in AYs 2006-07 & 2007-08 to 2012-13. 24. It is the case of the Assessee that the payment for use of software is not in the nature of royalty under DTAA and relied the decision of Hon'ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 25. The Coordinate Bench of the Tribunal in Assessee’s own case for AYs 2007- 08 to 2012-13, which was affirmed by the Hon'ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head 'royalty' by returning following findings :- "19. The AO has held that the income received by…

Amadeus It Group Sa, Spain vs. ACIT Circle-1(1)(1), International Taxation, New Delhi

In the result, the appeals filed by the assessee in I

Bench: Shri Shamim Yahya & Shri Yogesh Kumar U.S.

…he Tribunal in AYs 2006-07 & 2007-08 to 2012-13. 24. It is the case of the Assessee that the payment for use of software is not in the nature of royalty under DTAA and relied the decision of Hon'ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 25. The Coordinate Bench of the Tribunal in Assessee’s own case for AYs 2007- 08 to 2012-13, which was affirmed by the Hon'ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head 'royalty' by returning following findings :- "19. The AO has held that the income received by…

Posco Engineering and Construction Company Ltd., New Delhi vs. Addl. CIT, International Taxation, Chandigarh

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

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2008-09 Assessment Year : 2009-10 Posco Engineering & Vs Dcit, Construction Company, International Taxation, 5Th Floor, Park Centra Building, Civic Centre, Tower-A, Sector-30, Nh-8, Gurgaon. Gurgaon. Pan : Aaecp2664A (Appellant) (Respondent) Assessee By : Shri Ravi Sharma, Advocate & Shri Rishabh Malhotra, Ar Revenue By : Shri Satpal Gulati, Cit-Dr Date Of Hearing : 29.06.2021 Date Of Pronouncement : 27.09.2021 Order Per R.K. Panda, Am: The Above Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Passed U/S 143(3) R.W.S. 144C(5) & 144C(13) Of The It Act, 1961 For Assessment Years 2008-09 & 2009-10, Respectively.

…ation of Euro 150900 was received be considered as offshore supply of equipments and hence exempted from taxation. Our view is fortified from the judgment of the Hon'ble jurisdictional High Court in Director of Income Tax Vs Rio Tinto Technical Services (2012)340 ITR 507 which reversed the finding given by the Tribunal that the consideration received was for a composite contract and hence could not be bifurcated. It has been held that in the absence of any bifurcation, an estimated allocation has to be made for tax purposes. From the above judgment, it is manifest that the contention of the Id. AR that the fees f…

Amadeus It Group Sa, New Delhi vs. DCIT(International Taxation), Circle-1(1)(1), New Delhi

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

…of software is not in the nature of royalty under DTAA and relied 18 ITA No.2007/Del./2017 ITA No.3494/Del./2018 ITA No.7970/Del./2018 ITA No.7047/Del./2019 upon the decision rendered by Hon’ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 27. Coordinate Bench of the Tribunal in taxpayer’s own case for AYs 2007-08 to 2012-13, affirmed by the Hon’ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head ‘royalty’ by returning following findings :- “19. The AO has held that the income received by the assesse…

Amadeus It Group Sa, New Delhi vs. DCIT(International Taxation), Circle-9(1)(1), New Delhi

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

…of software is not in the nature of royalty under DTAA and relied 18 ITA No.2007/Del./2017 ITA No.3494/Del./2018 ITA No.7970/Del./2018 ITA No.7047/Del./2019 upon the decision rendered by Hon’ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 27. Coordinate Bench of the Tribunal in taxpayer’s own case for AYs 2007-08 to 2012-13, affirmed by the Hon’ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head ‘royalty’ by returning following findings :- “19. The AO has held that the income received by the assesse…

Amadeus It Group Sa, New Delhi vs. DCIT (International Taxation), Circle-1(1)(1), New Delhi

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

…of software is not in the nature of royalty under DTAA and relied 18 ITA No.2007/Del./2017 ITA No.3494/Del./2018 ITA No.7970/Del./2018 ITA No.7047/Del./2019 upon the decision rendered by Hon’ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 27. Coordinate Bench of the Tribunal in taxpayer’s own case for AYs 2007-08 to 2012-13, affirmed by the Hon’ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head ‘royalty’ by returning following findings :- “19. The AO has held that the income received by the assesse…

Amadeus It Group Sa, New Delhi vs. DCIT (International Taxation), New Delhi

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

…of software is not in the nature of royalty under DTAA and relied 18 ITA No.2007/Del./2017 ITA No.3494/Del./2018 ITA No.7970/Del./2018 ITA No.7047/Del./2019 upon the decision rendered by Hon’ble Delhi High Court in case of DIT vs. Tinto Technical Services 340 ITR 507 (Del.). 27. Coordinate Bench of the Tribunal in taxpayer’s own case for AYs 2007-08 to 2012-13, affirmed by the Hon’ble Delhi High Court, held that booking fee received by the taxpayer is taxable as business income and not under the head ‘royalty’ by returning following findings :- “19. The AO has held that the income received by the assesse…

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

The appeal of the assessee is allowed with above direction

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)

…ght to tax in India on gross basis, and the assessing officer bringing to tax such income on gross basis has no legal sanction. Reference is made in this regard to the recent decision of the Delhi High Court in the case of DIT v. Rio Tinto Technical Services: 340 ITR 507, wherein the High Court held that payments in the nature of FTS, received by a non-resident assessee would still be taxable as business profits under Article 7 of the India-Australia DTAA since they were connected to assessee‘s PE in India. The relevant observations of the Court are as under: ―10. Paragraph 4 of Article 12 states that paragraphs…

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

…oresaid stipulation, but by applying Article 7 of the DTAA. It appears and is apparent that the assessee and Revenue felt that application of DTAA was more beneficial to the assessee. 73. In Director of Income Tax Vs. Rio Tinto Technical Services [2012] 340 ITR 507 (Delhi) it has been observed that Section 90 (2) mandates that where the Central Government has entered into DTAA and the said agreement applies, the provisions of that Act will apply to the extent they are more beneficial to the assessee. In other words, when DTAA and provisions of the Act apply to an assessee, then the Article of DTAA or…