(i) Formula One World Championship Ltd. v. CIT

Hyatt International Southwest Asia Ltd., Gurgaon vs. DCIT (International Taxation), New Delhi

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

Bench: Sh. K. N. Charydr. B. R. R. Kumar(Through Video Conferencing) Ita No. 727/Del/2017 : Asstt. Year : 2013-14 Hyatt International Southwest Vs Deputy Commissioner Of Income Asia Ltd., Office 301, Level 3, Tax, Circle-2(1)(1), International Precinct 3, Dubai International Taxation, Financial Centre (Difc), Po Box New Delhi -506727, Dubai, Uae (Appellant) (Respondent) Pan No. Aacch2598H Assessee By : Sh. Ajit Kumar Jain Revenue By : Dr. Prabha Kant, Cit Dr Date Of Hearing: 22.02.2021 Date Of Pronouncement: 12.03.2021

…reme Court in the case of Morgan Stanley & Co. 292 ITR 416 (SC). The claim of the assessee that they did not have a place at their disposal cannot be accepted in view of the judgment of Hon’ble Supreme Court in the case of Formula One World Championships Ltd. 394 ITR 80, in the case of Azadi Bachao Andolan and also E-funds IT Solutions 86 Taxman 240. The facts on record undisputedly prove that the premises AHL are at the disposal of the assessee for conduct of their business. While coming to the issue of “at the disposal” in the premises is available for the assessee for running of their business even for a limit…

M/S. Voith Paper Gmbh, New Delhi vs. DDIT, New Delhi

In the result, appeal of the assessee is dismissed

Bench: Shri O.P. Kant & Shri K.N. Charyassessment Year: 2010-11

…which is used for purposes of undertaking core business activities of that foreign enterprise in that other contracting State. In this regard, reference is made to the decision of the Supreme Court in the case of Formula One World Championship Ltd. vs. CIT: 394 ITR 80 (SC) wherein the Court after referring to the OECD Model Tax Convention, Commentaries by Professor Philip Baker and Professor Klaus Vogel, international tax jurisprudence observed that in terms of Article 5(1) of the India- UK Tax Treaty, a fixed place PE is constituted in India, if twin conditions are satisfied viz, (i) existence of a fixed place…

Hyatt International Southwest Asia Ltd., United Arab Emirates vs. DCIT (International Taxation), New Delhi

In the result, the appeals of the assessee are dismissed

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 579/Del/2013 : Asstt. Year : 2009-10 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-1, International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 779/Del/2014 : Asstt. Year : 2010-11 Hyatt International-Southwest Vs Assistant Director Of Income Asia Ltd., Office 301, Level 3, Tax, Circle-1(2), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 1762/Del/2015 : Asstt. Year : 2011-12 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-2(1), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 957/Del/2016 : Asstt. Year : 2012-13 Hyatt International-Southwest Vs Deputy Commissioner Of Asia Ltd., Office 301, Level 3, Income Tax, Circle-2(1)(1), Precinct 3, Dubai International International Taxation, New Financial Centre (Difc), Delhi Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H

…e claim of the assessee that it didn't have a place at its 'disposal' is also examined in the following paragraphs on the basis of the facts of the case and from the perspective of the Hon'ble Supreme Court in the case of Formula One World Championships Ltd. (394 ITR 80)(FOWC) and eFunds IT Solutions (86 Taxmann.com 240)(e-Fund). It has been observed by Hon'ble Supreme Court in the case of FOWC (Supra) and further reconfirmed in the case of e-Fund (Supra): "OECD commentary on Model Tax Convention mentions that a general definition of the term 'PE' brings out its essential characteristics, i.e. a distinct "situs'…

Hyatt International Southwest Asia Ltd., Gurgaon vs. Addl. CIT, New Delhi

In the result, the appeals of the assessee are dismissed

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 579/Del/2013 : Asstt. Year : 2009-10 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-1, International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 779/Del/2014 : Asstt. Year : 2010-11 Hyatt International-Southwest Vs Assistant Director Of Income Asia Ltd., Office 301, Level 3, Tax, Circle-1(2), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 1762/Del/2015 : Asstt. Year : 2011-12 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-2(1), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 957/Del/2016 : Asstt. Year : 2012-13 Hyatt International-Southwest Vs Deputy Commissioner Of Asia Ltd., Office 301, Level 3, Income Tax, Circle-2(1)(1), Precinct 3, Dubai International International Taxation, New Financial Centre (Difc), Delhi Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H

…e claim of the assessee that it didn't have a place at its 'disposal' is also examined in the following paragraphs on the basis of the facts of the case and from the perspective of the Hon'ble Supreme Court in the case of Formula One World Championships Ltd. (394 ITR 80)(FOWC) and eFunds IT Solutions (86 Taxmann.com 240)(e-Fund). It has been observed by Hon'ble Supreme Court in the case of FOWC (Supra) and further reconfirmed in the case of e-Fund (Supra): "OECD commentary on Model Tax Convention mentions that a general definition of the term 'PE' brings out its essential characteristics, i.e. a distinct "situs'…

M/S. Hyatt International Southwest Asia Ltd., Gurgaon vs. ADIT, New Delhi

In the result, the appeals of the assessee are dismissed

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 579/Del/2013 : Asstt. Year : 2009-10 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-1, International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 779/Del/2014 : Asstt. Year : 2010-11 Hyatt International-Southwest Vs Assistant Director Of Income Asia Ltd., Office 301, Level 3, Tax, Circle-1(2), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 1762/Del/2015 : Asstt. Year : 2011-12 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-2(1), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 957/Del/2016 : Asstt. Year : 2012-13 Hyatt International-Southwest Vs Deputy Commissioner Of Asia Ltd., Office 301, Level 3, Income Tax, Circle-2(1)(1), Precinct 3, Dubai International International Taxation, New Financial Centre (Difc), Delhi Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H

…e claim of the assessee that it didn't have a place at its 'disposal' is also examined in the following paragraphs on the basis of the facts of the case and from the perspective of the Hon'ble Supreme Court in the case of Formula One World Championships Ltd. (394 ITR 80)(FOWC) and eFunds IT Solutions (86 Taxmann.com 240)(e-Fund). It has been observed by Hon'ble Supreme Court in the case of FOWC (Supra) and further reconfirmed in the case of e-Fund (Supra): "OECD commentary on Model Tax Convention mentions that a general definition of the term 'PE' brings out its essential characteristics, i.e. a distinct "situs'…

M/S. Hyatt International-Southwest Asia Ltd vs. ADIT, New Delhi

In the result, the appeals of the assessee are dismissed

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 579/Del/2013 : Asstt. Year : 2009-10 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-1, International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 779/Del/2014 : Asstt. Year : 2010-11 Hyatt International-Southwest Vs Assistant Director Of Income Asia Ltd., Office 301, Level 3, Tax, Circle-1(2), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 1762/Del/2015 : Asstt. Year : 2011-12 Hyatt International-Southwest Vs Additional Director Of Income Asia Ltd., Office 301, Level 3, Tax, Range-2(1), International Precinct 3, Dubai International Taxation, New Delhi Financial Centre (Difc), Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H Ita No. 957/Del/2016 : Asstt. Year : 2012-13 Hyatt International-Southwest Vs Deputy Commissioner Of Asia Ltd., Office 301, Level 3, Income Tax, Circle-2(1)(1), Precinct 3, Dubai International International Taxation, New Financial Centre (Difc), Delhi Po Box – 506727, Dubai (Appellant) (Respondent) Pan No. Aacch2598H

…e claim of the assessee that it didn't have a place at its 'disposal' is also examined in the following paragraphs on the basis of the facts of the case and from the perspective of the Hon'ble Supreme Court in the case of Formula One World Championships Ltd. (394 ITR 80)(FOWC) and eFunds IT Solutions (86 Taxmann.com 240)(e-Fund). It has been observed by Hon'ble Supreme Court in the case of FOWC (Supra) and further reconfirmed in the case of e-Fund (Supra): "OECD commentary on Model Tax Convention mentions that a general definition of the term 'PE' brings out its essential characteristics, i.e. a distinct "situs'…

Rolls-Royce Pic vs. Deputy Director of Income Tax Circle-2(1 ), International Taxation, New Delhi

Bench: It, Pertaining To The Assessment Years 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10. The Tribunal Has Rejected The Said Appeals Preferred By The Appellant, Inter Alia, On The Premise That This Court Has Held In Favour Of The Revenue Vide Its Decision Dated 30Th August, 2011 Reported As [2011] 13 Taxmann.Com 233 (Delhi) Rolls Royce

…e on the decision of the Supreme Court in M.M.Ipoh vs. Commissioner of Income Tax [1968] 67 ITR 106 (SC). He submits that the Supreme Court decision in Formula World Championship Ltd. vs. Commissioner of Income Tax, (International Taxation)-3 Delhi (2017) 394 ITR 80 was rendered after the earlier decision of this Court in the case of the appellant/assessee. He submits that the issue-whether RRIL constitutes PE of the appellant in the light of that decision, needs examination afresh. His further submission is that on the same set of facts, the liaison office of RRIL has been held to be the PE of the appell…

Rolls-Royce Pic vs. Deputy Director of Income Tax, Circle 2(1) International Taxation New Delhi

Bench: It, Pertaining To The Assessment Years 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10. The Tribunal Has Rejected The Said Appeals Preferred By The Appellant, Inter Alia, On The Premise That This Court Has Held In Favour Of The Revenue Vide Its Decision Dated 30Th August, 2011 Reported As [2011] 13 Taxmann.Com 233 (Delhi) Rolls Royce

…e on the decision of the Supreme Court in M.M.Ipoh vs. Commissioner of Income Tax [1968] 67 ITR 106 (SC). He submits that the Supreme Court decision in Formula World Championship Ltd. vs. Commissioner of Income Tax, (International Taxation)-3 Delhi (2017) 394 ITR 80 was rendered after the earlier decision of this Court in the case of the appellant/assessee. He submits that the issue-whether RRIL constitutes PE of the appellant in the light of that decision, needs examination afresh. His further submission is that on the same set of facts, the liaison office of RRIL has been held to be the PE of the appell…

Rolls-Royce Plc vs. Deputy Director of Income Tax, Circle-2(1), International Taxation, New Delhi

Bench: It, Pertaining To The Assessment Years 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10. The Tribunal Has Rejected The Said Appeals Preferred By The Appellant, Inter Alia, On The Premise That This Court Has Held In Favour Of The Revenue Vide Its Decision Dated 30Th August, 2011 Reported As [2011] 13 Taxmann.Com 233 (Delhi) Rolls Royce

…e on the decision of the Supreme Court in M.M.Ipoh vs. Commissioner of Income Tax [1968] 67 ITR 106 (SC). He submits that the Supreme Court decision in Formula World Championship Ltd. vs. Commissioner of Income Tax, (International Taxation)-3 Delhi (2017) 394 ITR 80 was rendered after the earlier decision of this Court in the case of the appellant/assessee. He submits that the issue-whether RRIL constitutes PE of the appellant in the light of that decision, needs examination afresh. His further submission is that on the same set of facts, the liaison office of RRIL has been held to be the PE of the appell…

Rolls-Royce Plc vs. Deputy Director of Income Tax, Circle-2(1 ), International Taxation, New Delhi

Bench: It, Pertaining To The Assessment Years 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10. The Tribunal Has Rejected The Said Appeals Preferred By The Appellant, Inter Alia, On The Premise That This Court Has Held In Favour Of The Revenue Vide Its Decision Dated 30Th August, 2011 Reported As [2011] 13 Taxmann.Com 233 (Delhi) Rolls Royce

…e on the decision of the Supreme Court in M.M.Ipoh vs. Commissioner of Income Tax [1968] 67 ITR 106 (SC). He submits that the Supreme Court decision in Formula World Championship Ltd. vs. Commissioner of Income Tax, (International Taxation)-3 Delhi (2017) 394 ITR 80 was rendered after the earlier decision of this Court in the case of the appellant/assessee. He submits that the issue-whether RRIL constitutes PE of the appellant in the light of that decision, needs examination afresh. His further submission is that on the same set of facts, the liaison office of RRIL has been held to be the PE of the appell…

Jaiprakash Associates Ltd., Noida vs. DCIT(International Taxation), Noida

Appeals are partly allowed for statistical purpose

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

…le in India including income from the fee received from the assessee and had discharged its Indian tax liability by direct payment as per the decision of the Hon’ble Apex Court in case of Formula One World Championship Ltd. vs. CIT- International Taxation 394 ITR 80 (SC). The Ld. AR further submitted that the assessee had deducted the TDS and interest thereon and paid the said amount, therefore, by following Hindustan Coca Cola Beverage Pvt. Ltd. Vs. CIT [2007] 293 ITR 226 (S.C.), CIT Vs. Eli Lilly & Co. (India) Pvt. Ltd. [2009] 312 ITR 225 (S. C.) the same tax could not be doubly collected from the asse…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

…ng a fixed place PE in terms of Article 5(1) of the DTAA? (g) Whether the SPCNL could be said to be a dependent agent PE (DAPE) of SMCS in India, under Article 5(4) of the DTAA? 8. The Hon’ble Supreme Court in the case of Formula One World Championship Ltd. 394 ITR 80 and ADIT v. E-Funds IT Solution Inc. 399 ITR 34 has held that there triggers no taxability in respect of offshore supplies in the absence of a PE of the non-resident assessee in India. In so far as the attribution of profit is concerned, as enshrined in Article 7 of the DTAA, the same would be inapplicable in absence of any activity relating t…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

…ng a fixed place PE in terms of Article 5(1) of the DTAA? (g) Whether the SPCNL could be said to be a dependent agent PE (DAPE) of SMCS in India, under Article 5(4) of the DTAA? 8. The Hon’ble Supreme Court in the case of Formula One World Championship Ltd. 394 ITR 80 and ADIT v. E-Funds IT Solution Inc. 399 ITR 34 has held that there triggers no taxability in respect of offshore supplies in the absence of a PE of the non-resident assessee in India. In so far as the attribution of profit is concerned, as enshrined in Article 7 of the DTAA, the same would be inapplicable in absence of any activity relating t…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

…ng a fixed place PE in terms of Article 5(1) of the DTAA? (g) Whether the SPCNL could be said to be a dependent agent PE (DAPE) of SMCS in India, under Article 5(4) of the DTAA? 8. The Hon’ble Supreme Court in the case of Formula One World Championship Ltd. 394 ITR 80 and ADIT v. E-Funds IT Solution Inc. 399 ITR 34 has held that there triggers no taxability in respect of offshore supplies in the absence of a PE of the non-resident assessee in India. In so far as the attribution of profit is concerned, as enshrined in Article 7 of the DTAA, the same would be inapplicable in absence of any activity relating t…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

…ng a fixed place PE in terms of Article 5(1) of the DTAA? (g) Whether the SPCNL could be said to be a dependent agent PE (DAPE) of SMCS in India, under Article 5(4) of the DTAA? 8. The Hon’ble Supreme Court in the case of Formula One World Championship Ltd. 394 ITR 80 and ADIT v. E-Funds IT Solution Inc. 399 ITR 34 has held that there triggers no taxability in respect of offshore supplies in the absence of a PE of the non-resident assessee in India. In so far as the attribution of profit is concerned, as enshrined in Article 7 of the DTAA, the same would be inapplicable in absence of any activity relating t…

Siemens Communication Spa vs. DDIT, Circle-2(2)

In the result, all the appeals of the assessee, viz

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

…ng a fixed place PE in terms of Article 5(1) of the DTAA? (g) Whether the SPCNL could be said to be a dependent agent PE (DAPE) of SMCS in India, under Article 5(4) of the DTAA? 8. The Hon’ble Supreme Court in the case of Formula One World Championship Ltd. 394 ITR 80 and ADIT v. E-Funds IT Solution Inc. 399 ITR 34 has held that there triggers no taxability in respect of offshore supplies in the absence of a PE of the non-resident assessee in India. In so far as the attribution of profit is concerned, as enshrined in Article 7 of the DTAA, the same would be inapplicable in absence of any activity relating t…

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

Bench: Smt Diva Singh & Shri Prashant Maharishi

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 4560/Del/2018 (Assessment Year: 2005-06) ITA No. 1946/Del/2017 (Assessment Year: 2007-08) ITA No. 5020/Del/2018 (Assessment Year: 2009-10) ITA No. 3327/Del/2018 (Assessment Year: 2013-14) LG Electronics Inc. Korea DCIT(International Vs. (LGEK), Taxation), Amti Shrivastava, Advocate, Circle-2(2)(1) C/o. AZB & Partners Advocates Noida, Room No. 312, and Solicitors, 3rd Floor, Aayakar Bhawan, Plot No. A8, Sector-4, Plot No. A-2D, Sector-24, Noida Noida PAN: AAACL7929E…

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

Bench: Smt Diva Singh & Shri Prashant Maharishi

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No. 4560/Del/2018 (Assessment Year: 2005-06) ITA No. 1946/Del/2017 (Assessment Year: 2007-08) ITA No. 5020/Del/2018 (Assessment Year: 2009-10) ITA No. 3327/Del/2018 (Assessment Year: 2013-14) LG Electronics Inc. Korea DCIT(International Vs. (LGEK), Taxation), Amti Shrivastava, Advocate, Circle-2(2)(1) C/o. AZB & Partners Advocates Noida, Room No. 312, and Solicitors, 3rd Floor, Aayakar Bhawan, Plot No. A8, Sector-4, Plot No. A-2D, Sector-24, Noida Noida PAN: AAACL7929E…