What is G.V.K. Industries Ltd. v. ITO authority for?

A 'business connection' for a non-resident requires continuity of activity or operations and a real, intimate relation between the non-resident's business outside India and its activities in India, rather than merely isolated or stray transactions.

How many judgments cite G.V.K. Industries Ltd. v. ITO?

41 judgments on BharatTax cite G.V.K. Industries Ltd. v. ITO (228 ITR 564), spanning 2016 to 2025.

Which sections of the Income Tax Act does G.V.K. Industries Ltd. v. ITO come up under?

It is most often cited in judgments turning on Section 9(1)(vii), Section 9(1)(vi), Section 195, Section 13(4), Section 143(3), Section 9(1)(i).

G.V.K. Industries Ltd. v. ITO (228 ITR 564)

ACIT(It)-4(3)(2), Mumbai vs. Wells Fargo Bank National Association, Mumbai

ITA 3795/MUM/2024[2013-14]Status: DisposedITAT Mumbai26 Sept 2025AY 2013-14

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawal

For Appellant: Shri Niraj Sheth, AdvocateFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139(1)Section 143(3)Section 147

…same on their own in future 6. 3. Ld. Assessing Officer relied on the following decisions: i. Tecumseh Products (I) Ltd. vs. DCIT [2007] 13 SOT 489 (Hyd) ii. Steel Authority of India Ltd. vs ITO [2009] 120 TTJ 297 (Del) iii. GVK Industries Ltd vs. ITO [1997] 228 ITR 564 (AP) 6.4 Facts of the case and submission of the assessee were examined by the ld. CIT(A). He noted that assessee is a tax resident of USA Article 12(4) of the treaty between India-USA which defines fees for included services as under: “4. For purposes of this Article,…

ACIT(It)-4(3)(2), Mumbai vs. Wells Fargo Bank National Association, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3794/MUM/2024[2014-15]Status: DisposedITAT Mumbai26 Sept 2025AY 2014-15

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawal

For Appellant: Shri Niraj Sheth, AdvocateFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139(1)Section 143(3)Section 147

…same on their own in future 6.3. Ld. Assessing Officer relied on the following decisions: i. Tecumseh Products (I) Ltd. vs. DCIT [2007] 13 SOT 489 (Hyd) ii. Steel Authority of India Ltd. vs ITO [2009] 120 TTJ 297 (Del) iii. GVK Industries Ltd vs. ITO [1997] 228 ITR 564 (AP) 6.4 Facts of the case and submission of the assessee were examined by the ld. CIT(A). He noted that assessee is a tax resident of USA Article 12(4) of the treaty between India-USA which defines fees for included services as under: “4. For purposes of this Article, "fees for included services" means payments of any kind to any person in cons…

Ethiopian Airlines Group, Ethiopia vs. ACIT, Int. Taxation Circle-1(2)(2), Delhi

ITA 2201/DEL/2024[2017-18]Status: DisposedITAT Delhi05 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

…ss activity if there exists a real and intimate relation between trading activity carried on outside the taxable territories and trading activity within the territories. The landmark judgment of the Andhra Pradesh High Court in the case of GVK Industries Ltd (228 ITR 564) held that to constitute a business activity there must be continuity of activity or operation of the non- resident with the Indian party and a stray or isolated transaction is not enough to constitute business activity. Op the contrary, in the instant case, the assessee enters into an agreement with the FSTI/FSTC who in turn pays the assessee in…

Ethiopian Airlines Group, Ehiopia vs. ACIT Int. Taxation Circle-1(2)(2), Delhi

ITA 2200/DEL/2024[2016-17]Status: DisposedITAT Delhi05 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

…ss activity if there exists a real and intimate relation between trading activity carried on outside the taxable territories and trading activity within the territories. The landmark judgment of the Andhra Pradesh High Court in the case of GVK Industries Ltd (228 ITR 564) held that to constitute a business activity there must be continuity of activity or operation of the non- resident with the Indian party and a stray or isolated transaction is not enough to constitute business activity. Op the contrary, in the instant case, the assessee enters into an agreement with the FSTI/FSTC who in turn pays the assessee in…

Shenhzhen Sdg Information Co. Ltd., Delhi vs. Circle Int. Taxation 3(1)(2), Delhi

Appeal is allowed

ITA 746/DEL/2022[2017-18]Status: DisposedITAT Delhi05 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2017-18 Vs. Commissioner Of Income Tax, Shenhzhen Sdg Information Co. Ltd., International Taxation-3, C/O- Tass Advisors Llp, 62, New Delhi Lower Ground Floor, Pocket 2, Jasola, New Delhi Pan: Aavcs7426C (Appellant) (Respondent) Assessee By Sh. Divyanshu Agrawal, Adv. Sh. Anubhav Rastogi, Adv. Department By Sh. Vijay B Vasanta, Cit(Dr) Date Of Hearing 10.03.2025 Date Of Pronouncement 05.06.2025 Order

Section 263Section 44B

…ship and not a mere isolated or stray nexus between the business of the non-resident outside India and the activity in India, would furnish a strong indication of 'business connection' in India. The Andhra Pradesh High Court in the case of GVK Industries Ltd (228 ITR 564) held that to constitute a business activity there must be continuity of activity or operation of the non-resident with the Indian party. 8.3.1.2 Undoubtedly, the assessee company because of its contractual engagement for a power project in India, constitutes a business connection in India as there exists a real and intimate relation of the non-r…

Shell International B.V., Netherlands vs. The Asstt.CIT., Circle(Intnl.Taxn.)-1, Ahmedabad

In the result, we hold that the above services did not qualify as FTS under the

ITA 1027/AHD/2023[2021-22]Status: DisposedITAT Ahmedabad15 Apr 2025AY 2021-22

Section 143Section 153

…echnical service. Professionalism and an element of expertise should be at the back of such services. There is a decision of Andhra Pradesh High Court in which the ambit of expression 'technical service' was considered. In G.V.K. Industries Ltd. v. ΙΤΟ [1997] 228 ITR 564 (AP), SSM Quadri, J. speaking for the Division Bench rejected the argument of the assessee's Counsel 'that the NRC did not render any technical or consultancy service to the petitioner- company and that it merely rendered advice in connection with the procurement of loans by it, which does not amount to rendering technical or consultancy service…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 5728/MUM/2024[2021 22]Status: DisposedITAT Mumbai31 Jan 2025

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 5727/MUM/2024[2018 19]Status: DisposedITAT Mumbai31 Jan 2025

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 5726/MUM/2024[2020 21]Status: DisposedITAT Mumbai31 Jan 2025

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 5725/MUM/2024[2019 20]Status: DisposedITAT Mumbai31 Jan 2025

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…

DCIT (International Taxation)-3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 3048/MUM/2022[2017-18]Status: DisposedITAT Mumbai31 Jan 2025AY 2017-18

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…

DCIT (International Taxation) 3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited., Mumbai

In the result all appeals filed by the revenue stands dismissed

ITA 3047/MUM/2022[2016-17]Status: DisposedITAT Mumbai31 Jan 2025AY 2016-17

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…s answering the questions of law (iii) and (iv) against the Revenue and in favour of the assessee." (emphasis supplied) 9.5. It is also submitted that the decision of the Hon'ble Supreme Court in case of G.V.K. Industries & Another vs. CIT reported in (1997) 228 ITR 564 is factually distinguishable. It is submitted that the issue considered by the Hon’ble Supreme Court relates to taxability of fees of consultant embodying knowledge in specialized field required for procuring finances and loans which is not the fact matter of the instant case. Whereas in the present facts the issue deals with regular IT related s…