Ishikawajima Harima Heavy Industries Ltd. v. DIT

288 ITR 408Supreme Court of India2007#187 most cited

What is Ishikawajima Harima Heavy Industries Ltd. v. DIT authority for?

Income from offshore supply of goods and services is not taxable in India if the entire transaction, including transfer of ownership and payments, occurs outside India.

394

judgments rely on this decision, according to BharatTax’s citation analysis of 369,743 Indian tax judgments — from 2010 to 2026.

Also referred to as

Ishikawajima Harima Heavy Industries Ltd v DIT · Section 9(1)(vii) · Section 195 · Section 40(a)(i) · offshore supply of goods · offshore services · income taxable in India · non-resident taxation · make available clause · business connection

Sections most often in play

Section 143(3)Section 234BSection 9(1)(vii)Section 144C(13)Section 144C(5)Section 195Section 234ASection 40(a)(i)

Issues it is cited on

section 44bbbsection 9(2)section 44bbsection 44bsection 195(1)make available clausesection 9(1)(i)agency pebusiness connectionfees for included servicessection 9(1)(vii)section 5(2)

Judgments citing Ishikawajima Harima Heavy Industries Ltd. v. DIT

DCIT 3(2), Mumbai vs. Lml Ltd, Mumbai

In the result, appeal of the revenue stands dismissed

ITA 3666/MUM/2011[2006-07]Status: DisposedITAT Mumbai21 Jun 2016AY 2006-07

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…impossible to hold that assessee should have withhold the tax at the time of making the payments. It is an admitted position that in wake of decision of Hon’ble Supreme Court, in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT, reported in [2007] 288 ITR 408 the position of law was that, if the services which are source of income, which is 72 M/s LML Ltd ITA No. :3668/Mum/2004 ITA No. : 3540/Mum/2004 ITA No. : 3666/Mum/2011 sought to be taxed in India have to be rendered in India as well as utilized in India so as to be held to be taxable in India. Both the conditions have to be satisfied, that is, t…

The ACIT RG-3(2) vs. M/S. Lml Ltd

In the result, appeal of the revenue stands dismissed

ITA 3668/MUM/2004[2000-2001]Status: DisposedITAT Mumbai21 Jun 2016AY 2000-2001

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…impossible to hold that assessee should have withhold the tax at the time of making the payments. It is an admitted position that in wake of decision of Hon’ble Supreme Court, in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT, reported in [2007] 288 ITR 408 the position of law was that, if the services which are source of income, which is 72 M/s LML Ltd ITA No. :3668/Mum/2004 ITA No. : 3540/Mum/2004 ITA No. : 3666/Mum/2011 sought to be taxed in India have to be rendered in India as well as utilized in India so as to be held to be taxable in India. Both the conditions have to be satisfied, that is, t…

M/S. Lml Ltd., Mumbai vs. The Addl CIT RG.3(2)

In the result, appeal of the revenue stands dismissed

ITA 3540/MUM/2004[2000-2001]Status: DisposedITAT Mumbai21 Jun 2016AY 2000-2001

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…impossible to hold that assessee should have withhold the tax at the time of making the payments. It is an admitted position that in wake of decision of Hon’ble Supreme Court, in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT, reported in [2007] 288 ITR 408 the position of law was that, if the services which are source of income, which is 72 M/s LML Ltd ITA No. :3668/Mum/2004 ITA No. : 3540/Mum/2004 ITA No. : 3666/Mum/2011 sought to be taxed in India have to be rendered in India as well as utilized in India so as to be held to be taxable in India. Both the conditions have to be satisfied, that is, t…

M/S. National Petroleum Construction Company, New Delhi vs. DDIT, New Delhi

In the result the appeal filed by the assessee stands allowed

ITA 2004/DEL/2014[2009-10]Status: DisposedITAT Delhi21 Jun 2016AY 2009-10

Bench: Shri N. K. Saini & Smt. Beena A. Pillai

For Appellant: Shri Amit Arora, CAFor Respondent: Shri Amrendra Kumar, CIT DR
Section 44BSection 9(1)

…d other materials was transferred to ONGC on issuing the completion certificate and acceptance of work. The Ld.DR placed reliance upon the decisions of the Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd VS DIT reported in (2007) 288 ITR 408 and of the Tribunal in case of DIT vs. Hyundai Heavy Industries Co Ltd reported in (2009) 31 SOT 482 (ITAT[Del]). 5.1 He further submitted that assessee’s income is neither a taxable in UAE nor in India and it is a tax evading mechanism instituted by the assessee. The Ld. D.R. vehemently submitted that the assessee must be categorized either as…

Tata Chemicals Ltd, Mumbai vs. DCIT (It), Mumbai

In the result, the appeal of the assessee is allowed

ITA 283/MUM/2012[2008-09]Status: DisposedITAT Mumbai13 Jun 2016AY 2008-09

Bench: Shri G S Pannu & Shri Amit Shuklaita

Section 195Section 195(2)

…s firstly, payment made to SP Italy was not for FTS or any services and secondly, it is not taxable in India. Specific reliance for later proposition was made on Hon’ble Apex Court decision in Ishikawajma Harima Heavy Industries Ltd vs DIT, reported in [2007] 288 ITR 408. 8 टाटा चे"मक"स "ल"मटेड TATA CHEMICALS LIMITED 5. The Ld. CIT(A), has dealt extensively with the assessee’s arguments; relevant clauses of the agreement; and the decisions relied upon by the assessee. In his detailed order, the Ld. CIT(A) has primarily held that the payment made by the assessee under the terms of the agreement and for BEDP is not…

ACIT, Dehradun vs. Westerm Geco International Ltd., Gurgaon

In the result, all the appeals preferred by the assessee are allowed

ITA 5400/DEL/2013[2010-11]Status: DisposedITAT Delhi13 May 2016AY 2010-11

Bench: Shri S. V. Mehrotra & Smt. Beena Pillaii.T.A .No.5602/Del/2013 (Assessment Year 2010-11)

Section 44

…n of the contract in India. Mobilisation in our view is an incidental activity to the main activity of carrying out the contract in India. The judgement of Hon’ble Supreme Court in the case of Ishikawajima and Hundai Heavy Industries Ltd. VSD I T, reported in 288 ITR 408 has been discussed by the Hon’ble High Court in the case of Sedco Forex International Inc (supra). The ratio laid down by Hon’ble Supreme Court in that case is not applicable here as it is not a case where separate parts of a contract are executed at different places. The argument that the payment was in the nature of reimbursement of expenses in…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/672/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/689/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

Nortel Networks India International Inc vs. The Director of Income Tax I

ITA/666/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/671/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

M/S. Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/669/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/673/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

Nortel Networks India International Inc vs. The Director of Income Tax-I

ITA/667/2014HC Delhi04 May 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 143(3)Section 147Section 260A

…is only when a non-resident Assessee‘s income is taxable under the Act that the question whether any benefit under the Double Taxation Avoidance Treaty is required to be examined. 45. In Ishikawajima-Harima Heavy Industries v. Dir. Of Income Tax: (2007) 288 ITR 408 (SC), the Supreme Court considered a case where Petronet LNG Limited and five members of a consortium had entered into an agreement for setting up a Liquefied Natural Gas (LNG) receiving, storage and de-gasification facility at Dahej in the State of Gujarat. The contract was a turnkey project and the role of each member/consortium of contrac…

M/S Balmer Lawries & Co. Ltd., Kolkata vs. Income Tax Officer(It) WD-1(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2079/KOL/2014[2012-2013]Status: DisposedITAT Kolkata27 Apr 2016AY 2012-2013

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2012-13 M/S Balmer Lawrie & Co. V/S. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [Pan No. Aabcb 0984 E] Bhawan (Poorva), 2Nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, Sr-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, Jcit-Dr ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date Of Hearing 27-04-2016 घोषणा क" तार"ख/Date Of Pronouncement

Section 195Section 201(1)Section 5(2)(b)

…eliance in this connection is placed on the decisions of the Hon’ble Supreme Court in Carborandum Co. v. CIT (1977) 108 ITR 335 (SC), CIT v. Toshoku Ltd. (1980) 125 ITR 525 (SC) and in Ishikawajima-harima Heavy Industries Ltd. v. Director of Income Tax (2007) 288 ITR 408 (SC). ITA No.ITA No.2079/Kol/2014 A.Y. 2012-13 M/s Blmer Lawrie & Co. Ltd. v. ITO(IT) Wd-1(1), Kol. Page 20 7. The aforesaid view was followed and reiterated by the Hon’ble Karnataka High Court in Jindal Thermal Power Co. Ltd. v. DCIT (2010) 321 ITR 31 (Kar), by the Hon’ble Rajasthan High Court in CIT v. Modern Insulators Ltd. (2014) 369 ITR 138…

DDIT, New Delhi vs. M/S Scorpion Courageous Ltd., New Delhi

In the result, the Cross Objection of the assessee is partly allowed

ITA 4619/DEL/2012[2008-09]Status: DisposedITAT Delhi25 Apr 2016AY 2008-09
Section 143(2)Section 234BSection 44BSection 44DSection 9

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘G’: NEW DELHI BEFORE SH. I.C. SUDHIR, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2008-09 DDIT, Circle-2(2), New Delhi Vs. M/s. Scorpion Courageous Ltd., C/o- M. Lal & Associates, L-107, 2nd Floor, Lajpat Nagar-II, Gate No. 2, 1st Floor, New Delhi. GIR/PAN : AAKCS9967K (Appellant) (Respondent) And C.O. No. 59/Del/2013 [In ITA No. 4619/Del/2012] Assessment Year: 2008-09 M/s. Scorpion Courageous Ltd., Vs. DDIT, Circle-2(2), New Delhi C/o- SRBC & Associates, 16th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar West, Mumbai. GIR/PAN : AAKCS9…

Gifford & Partners Ltd.(Since Merged With Gifford LLP), Kolkata vs. ADIT (International Taxation) - 1(1), Kolkata

In the result ITA No.1489/Kol/11 is partly allowed

ITA 1489/KOL/2011[2005-06]Status: DisposedITAT Kolkata06 Apr 2016AY 2005-06

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] Assessment Year : 2007-08

For Appellant: Shri S.K.Agarwal, FCAFor Respondent: Shri G.Mallikarjuna, CIT (DR)
Section 143(3)Section 144C

…, excludes it from being a part of the cause of income and thus, there is no business connection. The Assessee relied on the following decisions wherein the contentions referred to above have been accepted: • Ishikawajima Harima Heavy Industries Ltd. vs. CIT 288 ITR 408 (SC) • CIT vs. Siemens Aktiongesellschaft (2009) 310 ITR 320 BOM) • Mahindra vs. DCIT (2009-TIOL-255-ITAT-MUM-SB) • Reymonds Ltd. vs. DCIT (2003) 86ITD 791, ITAT BOM Gifford and Partners Ltd. (since merged with Gifford LLP). A.Yr.2007-08 • Intertek Testing Services India Pvt. Ltd. (2008) 307 ITR 418AAR It was again reiterated that during the…

Gifford & Partners Ltd.(Since Merged With Gifford LLP), Kolkata vs. DDIT, International Taxation - 1(1), Kolkata

In the result ITA No.1489/Kol/11 is partly allowed

ITA 2082/KOL/2010[2007-08]Status: DisposedITAT Kolkata06 Apr 2016AY 2007-08

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] Assessment Year : 2007-08

For Appellant: Shri S.K.Agarwal, FCAFor Respondent: Shri G.Mallikarjuna, CIT (DR)
Section 143(3)Section 144C

…, excludes it from being a part of the cause of income and thus, there is no business connection. The Assessee relied on the following decisions wherein the contentions referred to above have been accepted: • Ishikawajima Harima Heavy Industries Ltd. vs. CIT 288 ITR 408 (SC) • CIT vs. Siemens Aktiongesellschaft (2009) 310 ITR 320 BOM) • Mahindra vs. DCIT (2009-TIOL-255-ITAT-MUM-SB) • Reymonds Ltd. vs. DCIT (2003) 86ITD 791, ITAT BOM Gifford and Partners Ltd. (since merged with Gifford LLP). A.Yr.2007-08 • Intertek Testing Services India Pvt. Ltd. (2008) 307 ITR 418AAR It was again reiterated that during the…

ITO (TDS), New Delhi vs. Bharti Airtel Ltd., Gurgaon

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

ITA 4077/DEL/2012[2009-10 (F.Y. 2008-09)]Status: DisposedITAT Delhi17 Mar 2016

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

For Appellant: Sh. S.K. Tulsiyan, Adv., ShFor Respondent: Sh. Anuj Arora, CIT(DR)
Section 194JSection 201Section 201(1)Section 9Section 9(1)(vii)

…transponder was in orbit. Merely because it had its footprint on various continents that would not that the process had taken place in India. ISRO SATELLITE CENTRE [ISAC], In re [2008] 307 ITR 59 (AAR), ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES LTD. v. DIT [2007] 288 ITR 408 (SC) and LAKSHMI AUDIO VISUAL INC. v. ASST. CCT [2001] 124 STC 426 (Karn) applied. ITA Nos. 3593 TO 3596/Del/2012 [Bharti Airtel Ltd. vs. ITO(TDS)] & ITA Nos. 4076 TO 4079/Del/2012 [ITO(TDS) vs. Bharti Airtel Ltd.] iii) That the money received from the cable operators by the operators was treated as income by these telecast operators which had i…

ITO (TDS), New Delhi vs. Bharti Airtel Ltd., Gurgaon

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

ITA 4076/DEL/2012[2008-09 (F.Y. 2007-08)]Status: DisposedITAT Delhi17 Mar 2016

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

For Appellant: Sh. S.K. Tulsiyan, Adv., ShFor Respondent: Sh. Anuj Arora, CIT(DR)
Section 194JSection 201Section 201(1)Section 9Section 9(1)(vii)

…transponder was in orbit. Merely because it had its footprint on various continents that would not that the process had taken place in India. ISRO SATELLITE CENTRE [ISAC], In re [2008] 307 ITR 59 (AAR), ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES LTD. v. DIT [2007] 288 ITR 408 (SC) and LAKSHMI AUDIO VISUAL INC. v. ASST. CCT [2001] 124 STC 426 (Karn) applied. ITA Nos. 3593 TO 3596/Del/2012 [Bharti Airtel Ltd. vs. ITO(TDS)] & ITA Nos. 4076 TO 4079/Del/2012 [ITO(TDS) vs. Bharti Airtel Ltd.] iii) That the money received from the cable operators by the operators was treated as income by these telecast operators which had i…

Bharti Airtel Ltd., Gurgaon vs. ITO (TDS), New Delhi

In the result, all the Appeals of the Assessee are allowed and all the Revenue’s Appeals are dismissed

ITA 3596/DEL/2012[2011-12 (F.Y. 2010-11)]Status: DisposedITAT Delhi17 Mar 2016

Bench: Shri H.S. Sidhu & Shri J. Sudhakar Reddy

For Appellant: Sh. S.K. Tulsiyan, Adv., ShFor Respondent: Sh. Anuj Arora, CIT(DR)
Section 194JSection 201Section 201(1)Section 9Section 9(1)(vii)

…transponder was in orbit. Merely because it had its footprint on various continents that would not that the process had taken place in India. ISRO SATELLITE CENTRE [ISAC], In re [2008] 307 ITR 59 (AAR), ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES LTD. v. DIT [2007] 288 ITR 408 (SC) and LAKSHMI AUDIO VISUAL INC. v. ASST. CCT [2001] 124 STC 426 (Karn) applied. ITA Nos. 3593 TO 3596/Del/2012 [Bharti Airtel Ltd. vs. ITO(TDS)] & ITA Nos. 4076 TO 4079/Del/2012 [ITO(TDS) vs. Bharti Airtel Ltd.] iii) That the money received from the cable operators by the operators was treated as income by these telecast operators which had i…