HCL Infosystems Limited v. DCIT

76 TTJ 505Income Tax Appellate Tribunal2002#10742 most cited

What is HCL Infosystems Limited v. DCIT authority for?

The Indian company is considered the employer of foreign technicians deputed to it, even if their salaries are disbursed by the foreign company, if the Indian company exercises supervision and control over their work and deducts tax at source under Section 192. The reimbursement of salaries to the foreign company in such cases is not taxable in the hands of the foreign company.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

HCL Infosystems Limited v. DCIT · 76 TTJ 505 · employer employee relationship · foreign technicians · deputed employees · salary reimbursement · taxability · section 192 · TDS

Issues it is cited on

proximate nexussection 10(35)dependent agent peservice pesection 135csr expenditureweighted deductionsection 35(2ab)section 10(34)transactional net margin methodenduring benefitsection 40(a)(i)

Judgments citing HCL Infosystems Limited v. DCIT

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

ITA 901/DEL/2017[2012-13]Status: DisposedITAT Delhi08 Oct 2025AY 2012-13

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri G.C. Srivastava, Spl. Counsel for the Department
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 14ASection 32Section 35Section 43B

…on, control and supervision of the Indian company do not constitute a PE of the foreign company in India. Reliance in this regard is placed on the following judicial precedents: - Carborandum Co. vs. CIT : 108 ITR 335 (SC) - HCL Infosys Systems Ltd vs. DCIT : 76 TTJ 505 (Del. ITAT) further affirmed by Hon'ble Delhi High Court in the case of Director of Income- tax vs. HCL Info Systems Ltd : 274 ITR 261. - IDS Software Solutions (India) (P.) Ltd. vs. Income-tax Officer: 32 SOT 25 (Bang.) In view of the aforesaid discussions regarding the role and duties of directors, concept and scope of fixed place PE, it is beyo…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

ITA 1024/DEL/2016[2011-12]Status: DisposedITAT Delhi08 Oct 2025AY 2011-12

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri G.C. Srivastava, Spl. Counsel for the Department
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 14ASection 32Section 35Section 43B

…on, control and supervision of the Indian company do not constitute a PE of the foreign company in India. Reliance in this regard is placed on the following judicial precedents: - Carborandum Co. vs. CIT : 108 ITR 335 (SC) - HCL Infosys Systems Ltd vs. DCIT : 76 TTJ 505 (Del. ITAT) further affirmed by Hon'ble Delhi High Court in the case of Director of Income- tax vs. HCL Info Systems Ltd : 274 ITR 261. - IDS Software Solutions (India) (P.) Ltd. vs. Income-tax Officer: 32 SOT 25 (Bang.) In view of the aforesaid discussions regarding the role and duties of directors, concept and scope of fixed place PE, it is beyo…

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 961/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…eign company in India. Reliance was placed on the judgement of Hon’ble Supreme Court in the case of Carborandum Co. vs CIT 108 ITR 335 (SC). Further, reliance was placed on the decision of Co- ordinate Bench of the Tribunal in HCL Infosys Systems Ltd. vs DCIT 76 TTJ 505 and the judgement of Hon’ble Delhi High Court in the case of Director of Income Tax vs HCL Infosys Systems Ltd. 274 ITR 261 (Del.). He submitted that the Directors have been nominated in the Board of Directions of the appellant by 78 | P a g e SMC to ensure that the commercial interest of the appellant are looked after. The nominee Directors and…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

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

ITA 1507/DEL/2015[2010-11]Status: DisposedITAT Delhi09 Feb 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2010-11] Maruti Suzuki India Ltd., Vs Dcit, Plot No.1, Nelson Mandela Road, Circle-16(1), Vasant Kunj, New Delhi-110070. New Delhi. Pan-Aaacm0829Q Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs Maruti Suzuki India Ltd., Circle-16(1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi-110070. Pan-Aaacm0829Q Appellant Respondent Appellant By Shri Ajay Vohra, Sr.Adv., Shri Neeraj Jain, Adv. & Ms. Tejasvi Jain & Ms. Somya Jain, Ca Respondent By Shri G.C.Srivastava, Adv., Shri Kalrav Mehrotra, Adv. & Shri Mayank Patawari, Ca Date Of Hearing 11.11.2022 Date Of Pronouncement 09.02.2023

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…eign company in India. Reliance was placed on the judgement of Hon’ble Supreme Court in the case of Carborandum Co. vs CIT 108 ITR 335 (SC). Further, reliance was placed on the decision of Co- ordinate Bench of the Tribunal in HCL Infosys Systems Ltd. vs DCIT 76 TTJ 505 and the judgement of Hon’ble Delhi High Court in the case of Director of Income Tax vs HCL Infosys Systems Ltd. 274 ITR 261 (Del.). He submitted that the Directors have been nominated in the Board of Directions of the appellant by 78 | P a g e SMC to ensure that the commercial interest of the appellant are looked after. The nominee Directors and…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- 2(2)(1), International Taxation, New Delhi

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 3327/DEL/2018[2013-14]Status: HeardITAT Delhi02 Sept 2019AY 2013-14

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…pany exercised control over the affairs of LGEIL through the expatriates employees seconded to LGEIL. E supported his arguments by the following judicial precedents . a) The Delhi bench of the Tribunal in the case of HCL Infosystems Limited vs. DCIT : [2002] 76 TTJ 505 having regard to the fact that the foreign technicians deputed by Hewlett-Packard to the assessee’s joint venture in India - filed application with the Foreigners Regional Registration Office (“FRRO”) for taking employment in India, were holding employment visa, were given designation / position in the assessee company, were given duties and respo…

M/S. Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT (International Taxation), Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 1946/DEL/2017[2007-08]Status: HeardITAT Delhi02 Sept 2019AY 2007-08

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…pany exercised control over the affairs of LGEIL through the expatriates employees seconded to LGEIL. E supported his arguments by the following judicial precedents . a) The Delhi bench of the Tribunal in the case of HCL Infosystems Limited vs. DCIT : [2002] 76 TTJ 505 having regard to the fact that the foreign technicians deputed by Hewlett-Packard to the assessee’s joint venture in India - filed application with the Foreigners Regional Registration Office (“FRRO”) for taking employment in India, were holding employment visa, were given designation / position in the assessee company, were given duties and respo…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- Noida, International Taxation, Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 6916/DEL/2017[2008-09]Status: HeardITAT Delhi02 Sept 2019AY 2008-09

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…pany exercised control over the affairs of LGEIL through the expatriates employees seconded to LGEIL. E supported his arguments by the following judicial precedents . a) The Delhi bench of the Tribunal in the case of HCL Infosystems Limited vs. DCIT : [2002] 76 TTJ 505 having regard to the fact that the foreign technicians deputed by Hewlett-Packard to the assessee’s joint venture in India - filed application with the Foreigners Regional Registration Office (“FRRO”) for taking employment in India, were holding employment visa, were given designation / position in the assessee company, were given duties and respo…

Asst DIT (It) 2(2), Mumbai vs. Wns Global Services (Uk) Ltd, Mumbai

Appeal is partly allowed

ITA 1406/MUM/2014[2010-11]Status: DisposedITAT Mumbai18 Nov 2016AY 2010-11

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 115ASection 144C(3)Section 234B

…1014 (Del) 4. CIT vs. Dunlop Rubber Co Ltd 142 ITR 493 (Cal) 5. JDITvs. Krupp UHDE GMBH[2009] 124 TIJ 219·(Mum ITAT) 6. DDIT vs. Tata Iron & Steel Co. Ltd.132 TTJ 566 (Mum ITAT) 7. Clifford Chance Vs DCIT 82 ITD 106 (Mum) 6 WNS 8. HCL Infosytems Ltd Vs OCIT 76 TTJ 505 (Delhi ITAT) 6.1. The Assessee also relied upon the order of the Bangalore Tribunal in the case of Wipro Ltd. (80 TTJ 191), wherein the Tribunal had observed that amounts payable by Wipro Ltd towards provision of international connectivity cannot constitute income taxable as royalty / FTS under Section 9(l)(vi) and (vii) of the Income-tax Act, 19…

Wns Global Services (Uk) Ltd., Mumbai vs. ADIT (It) 2(2), Mumbai

Appeal is partly allowed

ITA 6411/MUM/2012[2009-10]Status: DisposedITAT Mumbai18 Nov 2016AY 2009-10

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 115ASection 144C(3)Section 234B

…1014 (Del) 4. CIT vs. Dunlop Rubber Co Ltd 142 ITR 493 (Cal) 5. JDITvs. Krupp UHDE GMBH[2009] 124 TIJ 219·(Mum ITAT) 6. DDIT vs. Tata Iron & Steel Co. Ltd.132 TTJ 566 (Mum ITAT) 7. Clifford Chance Vs DCIT 82 ITD 106 (Mum) 6 WNS 8. HCL Infosytems Ltd Vs OCIT 76 TTJ 505 (Delhi ITAT) 6.1. The Assessee also relied upon the order of the Bangalore Tribunal in the case of Wipro Ltd. (80 TTJ 191), wherein the Tribunal had observed that amounts payable by Wipro Ltd towards provision of international connectivity cannot constitute income taxable as royalty / FTS under Section 9(l)(vi) and (vii) of the Income-tax Act, 19…

Intel Corporation, Bangalore vs. Dy. Dir I.T., Bangalore

In the result, the appeal of the assessee is partly allowed

ITA 1486/BANG/2013[2008-09]Status: DisposedITAT Bangalore30 Sept 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Koushik Muharjee, C.AFor Respondent: Smt. Swapna Das, JCIT (D.R)
Section 9(1)(vii)

…he seconded employees lies with ITIPL and the same has been remitted by ITIPL. • In this regard, we would draw your kind attention to the decision of the Hon’ble Income Tax Appellate Tribunal, Delhi (‘ITAT') in the case of HCL Infosystems Ltd. v. DCIT [(2002) 76 TTJ 505 (Delhi ITAT)]. In this decision, the ITAT was examining the taxability of reimbursement of salary remitted by an Indian company to a foreign company, who had deputed technical personnel to the Indian company to work as employees of the Indian company. The salaries of the personnel were disbursed by the foreign company. The Indian company was deduc…

HCL Infosystems Limited v. DCIT (76 TTJ 505) — Cited in 10 Judgments | BharatTax