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

M/S. Idea Cellular Limited, Indore vs. The DCIT (TDS), Indore

Appeals are allowed

ITA 109/IND/2015[2012-13]Status: DisposedITAT Indore01 Aug 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 194Section 194HSection 194JSection 201(1)

…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. (iii) That the money received from the cable operators by the operators was treated as income by these telecast operators which had in India and they had offered and paid tax. Thus, the income generated in India had been duly subjected to tax in India. The payment…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/334/2022HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…in the orbit. Merely because it has its footprint on various continents would not mean that the process has taken place in India. This aspect now stands concluded by the Supreme Court in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT (2007) 288 ITR 408. In that case, the appellant, a non-resident company incorporated in Japan, along with five other enterprises formed a consortium. The consortium was awarded by Petronet a turnkey project for setting up a liquefied natural gas (LNG) receiving, storage and regasification facility in Gujarat. The contract specified the role and responsibility…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/206/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…in the orbit. Merely because it has its footprint on various continents would not mean that the process has taken place in India. This aspect now stands concluded by the Supreme Court in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT (2007) 288 ITR 408. In that case, the appellant, a non-resident company incorporated in Japan, along with five other enterprises formed a consortium. The consortium was awarded by Petronet a turnkey project for setting up a liquefied natural gas (LNG) receiving, storage and regasification facility in Gujarat. The contract specified the role and responsibility…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/61/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…in the orbit. Merely because it has its footprint on various continents would not mean that the process has taken place in India. This aspect now stands concluded by the Supreme Court in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT (2007) 288 ITR 408. In that case, the appellant, a non-resident company incorporated in Japan, along with five other enterprises formed a consortium. The consortium was awarded by Petronet a turnkey project for setting up a liquefied natural gas (LNG) receiving, storage and regasification facility in Gujarat. The contract specified the role and responsibility…

The Commissioner of Income Tax - International Taxation -3 vs. Telstra Singapore Pte Ltd

ITA/55/2023HC Delhi24 Jul 2024

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 9

…in the orbit. Merely because it has its footprint on various continents would not mean that the process has taken place in India. This aspect now stands concluded by the Supreme Court in the case of Ishikawajima-Harima Heavy Industries Ltd. v. DIT (2007) 288 ITR 408. In that case, the appellant, a non-resident company incorporated in Japan, along with five other enterprises formed a consortium. The consortium was awarded by Petronet a turnkey project for setting up a liquefied natural gas (LNG) receiving, storage and regasification facility in Gujarat. The contract specified the role and responsibility…

Bticino S.P.A, Italy vs. ACIT Intl. Taxation-1(1)(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 2294/DEL/2023[2020-21]Status: DisposedITAT Delhi24 Jul 2024AY 2020-21

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. S. K. Aggarwal, CAFor Respondent: Sh. Vizay B. Vasanta, CIT-DR
Section 143(3)Section 144C(13)Section 153Section 234ASection 270A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member ITA No. 2294/Del/2023 : Asstt. Year : 2020-21 Bticino S.P.A, Vs. ACIT, 231, Viale Borri, Varese, International Taxation Italy-999999 Circle-1(1)(2), New Delhi (APPELLANT) (RESPONDENT) PAN No. AAICB5197J Assessee by : Sh. S. K. Aggarwal, CA Revenue by : Sh. Vizay B. Vasanta, CIT-DR Date of Hearing: 08.05.2024 Date of Pronouncement: 24.07.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order dated 19.06.2023…

Honda Trading Asia Co. Ltd., Thailand vs. DCIT, Intl. Taxation Circle, Noida

ITA 7276/DEL/2018[2015-16]Status: DisposedITAT Delhi23 Jul 2024AY 2015-16

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

Section 12Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 234ASection 234D

…was also submitted that it is now well settled law that receipts arising from offshore parts supplied are not taxable in India. In this regard, reliance is placed on the judgement in Ishikawajma Harima Heavy Industries Ltd. v. Director of Income-tax, Mumbai (288 ITR 408) wherein the Hon’ble Supreme Court has held that only such part of the income as is attributable to operations carried out in India is taxable in India. It was submitted that Hon’ble Apex Court further held that where all parts of transaction i.e., the transfer of property in goods as well as payments thereof, are carried on outside the Indian so…

Honda Trading Asia Co. Ltd., New Delhi vs. DCIT, Noida

ITA 1160/DEL/2015[2010-11]Status: DisposedITAT Delhi23 Jul 2024AY 2010-11

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

Section 12Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 234ASection 234D

…was also submitted that it is now well settled law that receipts arising from offshore parts supplied are not taxable in India. In this regard, reliance is placed on the judgement in Ishikawajma Harima Heavy Industries Ltd. v. Director of Income-tax, Mumbai (288 ITR 408) wherein the Hon’ble Supreme Court has held that only such part of the income as is attributable to operations carried out in India is taxable in India. It was submitted that Hon’ble Apex Court further held that where all parts of transaction i.e., the transfer of property in goods as well as payments thereof, are carried on outside the Indian so…

Jiangsu Zhongtian Technology Co Ltd, Gurgaon vs. ACIT Circle Int Tax 2(1)(2), New Delhi

In the result, the appeal of the assessee is allowed and the Stay Application of the assessee is dismissed

ITA 350/DEL/2023[2020-21]Status: DisposedITAT Delhi27 Jun 2024AY 2020-21

Bench: Dr. B. R. R. Kumar, Sh. Anubhav Sharma

For Appellant: Sh. Kamal Sawhney, Adv. &For Respondent: Sh. Vizay B. Vasanta, CIT-DR
Section 143(3)Section 234A

…PE of the assessee in India. He submitted, the observations of the departmental authorities on the face of it are erroneous, as they are in the teeth of the ratio laid down by Hon’ble Supreme Court in case of Ishikawajma Harima Heavy Industries v. DIT (2007) 288 ITR 408, the decision of Hon’ble Delhi High court in case of DIT v. Ericsson AB (ITA No. 397/2007) and the decision of Tribunal in case of DIT vs. LG Cable (2011) 237 CTR 438 and DDIT vs. Mitsui & Co. (2020) 118 taxxmann.com 379 (Delhi). He submitted, in case of the assessee, admittedly, the contracts for offshore and onshore activities are separate. He…

Siemens Aktiengesellschaft, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 2153/MUM/2014[2009-10]Status: DisposedITAT Mumbai07 Jun 2024AY 2009-10

Bench: SHRI B R BASKARAN (Accountant Member), SHRI AMIT SHUKLA (Judicial Member)

Section 144CSection 144C(5)Section 153Section 9(1)(vi)

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘H‘ BENCH MUMBAI BEFORE: SHRI B R BASKARAN, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER Siemens Aktiengesellshaft Vs. Dy. Director of Income C/o. B S R & Co. LLP Tax (International Lodha Excelus, 1st Floor Taxation) – 2(1) Apollo Mills Compound Mumbai N.M. Joshi Marg Mahalakshmi Mumbai – 400 011 PAN/GIR No.AABCS8516K (Appellant) (Respondent) .. Dy. Director of Income Vs. Siemens Aktiengesellshaft Tax (International C/o. B S R & Co. LLP Lodha Excelus, 1st Floor Taxation) – 2(1) Mumbai Apollo Mills Compound N.M. Joshi Marg Mahalakshmi Mumbai – 400 011 PAN/GIR No.AABCS…

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 518/CHNY/2018[2009-10]Status: DisposedITAT Chennai29 May 2024AY 2009-10

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

….counsel stated that until amendment of Section 9(2) of the Act by inserting an explanation thereto, the legal position as laid down by the decision of the Hon'ble Supreme Court in the case of Ishikawajma-Harima Heavy Industries Ltd. v. DIT reported in [2007] 288 ITR 408 (SC), was that for section 9(1)(vi) to be applicable, it is necessary that services provided by a non-resident assessee should not only be utilized within India, but should also be rendered in India or should have such a live link with India. Thereafter, an Explanation was inserted to Section 9(2) of the Act,vide Finance Act, 2007, to clarify tha…

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 507/CHNY/2018[2012-13]Status: DisposedITAT Chennai29 May 2024AY 2012-13

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

….counsel stated that until amendment of Section 9(2) of the Act by inserting an explanation thereto, the legal position as laid down by the decision of the Hon'ble Supreme Court in the case of Ishikawajma-Harima Heavy Industries Ltd. v. DIT reported in [2007] 288 ITR 408 (SC), was that for section 9(1)(vi) to be applicable, it is necessary that services provided by a non-resident assessee should not only be utilized within India, but should also be rendered in India or should have such a live link with India. Thereafter, an Explanation was inserted to Section 9(2) of the Act,vide Finance Act, 2007, to clarify tha…

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 506/CHNY/2018[2011-12]Status: DisposedITAT Chennai29 May 2024AY 2011-12

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

….counsel stated that until amendment of Section 9(2) of the Act by inserting an explanation thereto, the legal position as laid down by the decision of the Hon'ble Supreme Court in the case of Ishikawajma-Harima Heavy Industries Ltd. v. DIT reported in [2007] 288 ITR 408 (SC), was that for section 9(1)(vi) to be applicable, it is necessary that services provided by a non-resident assessee should not only be utilized within India, but should also be rendered in India or should have such a live link with India. Thereafter, an Explanation was inserted to Section 9(2) of the Act,vide Finance Act, 2007, to clarify tha…

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 505/CHNY/2018[2010-11]Status: DisposedITAT Chennai29 May 2024AY 2010-11

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

….counsel stated that until amendment of Section 9(2) of the Act by inserting an explanation thereto, the legal position as laid down by the decision of the Hon'ble Supreme Court in the case of Ishikawajma-Harima Heavy Industries Ltd. v. DIT reported in [2007] 288 ITR 408 (SC), was that for section 9(1)(vi) to be applicable, it is necessary that services provided by a non-resident assessee should not only be utilized within India, but should also be rendered in India or should have such a live link with India. Thereafter, an Explanation was inserted to Section 9(2) of the Act,vide Finance Act, 2007, to clarify tha…

Idea Cellular Limited, Indore vs. DCIT TDS, Indore

ITA 265/IND/2018[2010-11]Status: DisposedITAT Indore23 Apr 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S Vodafone Idea Ltd. Cit (Tds), बनाम/ (Formerly M/S Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/S Vodafone Idea Ltd. Dcit/Jcit (Tds), बनाम/ (Formerly M/S Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent)

Section 194HSection 194JSection 201Section 201(1)Section 250Section 254(2)Section 263

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER M/s Vodafone Idea Ltd. CIT (TDS), बनाम/ (Formerly M/s Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/s Vodafone Idea Ltd. DCIT/JCIT (TDS), बनाम/ (Formerly M/s Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) PAN: AAACB2100P / TAN: BPLI00953B Assessee by Shri Sumit Nema, Sr. Advoca…

M/S. Idea Cellular Limited, Indore vs. The CIT (TDS), Bhopal

ITA 415/IND/2014[2010-11]Status: DisposedITAT Indore23 Apr 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S Vodafone Idea Ltd. Cit (Tds), बनाम/ (Formerly M/S Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/S Vodafone Idea Ltd. Dcit/Jcit (Tds), बनाम/ (Formerly M/S Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent)

Section 194HSection 194JSection 201Section 201(1)Section 250Section 254(2)Section 263

…आयकर अपीलीय अिधकरण, इंदौर "ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER M/s Vodafone Idea Ltd. CIT (TDS), बनाम/ (Formerly M/s Idea Bhopal Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) M/s Vodafone Idea Ltd. DCIT/JCIT (TDS), बनाम/ (Formerly M/s Idea Indore Vs. Cellular Ltd.), 139-140, Electronics Complex, Pardeshipura, Indore (Assessee/Appellant) (Revenue/Respondent) PAN: AAACB2100P / TAN: BPLI00953B Assessee by Shri Sumit Nema, Sr. Advoca…

J.M. Voith Se & Co. Kg (Earlier Voith Paper Gmbh & Co. Kg), New Delhi vs. DCIT, Circle- 3(1)(1), International Taxation, New Delhi

In the result, appeal is allowed for statistical purposes

ITA 4862/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Apr 2024AY 2015-16

Bench: Shri G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-Assessment Year: 2015-16 J.M. Voith Se & Co. Kg Versus Dcit, Circle 3(1)(1), (Earlier Voith Paper Gmbh & Co. International Taxation, Kg), C/O Mohinder Puri & Co., New Delhi. Cas, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi. Pan: Aadcv4876D (Appellant) (Respondent) Assessee By : Sh. Rajan Bhatia, Adv. Sh. Ankit Nanda & Sh. Anuj Mathur, Ca Revenue By : Sh. Sanjay Kumar, Sr. Dr & Sh. Vivek Vardhan, Sr. Dr Date Of Hearing : 19.04.2024 Date Of Pronouncement: 23.04.2024 Order

For Appellant: Sh. Rajan Bhatia, AdvFor Respondent: Sh. Sanjay Kumar, Sr. DR and Sh. Vivek Vardhan, Sr. DR
Section 9(1)(i)

…ct of offshore supply, as, such PE is constituted much later in time. In support, he relied upon the following decisions : (i). CIT vs. Hyundai Heavy Industries Co. Ltd. (2007) 161 Taxman 191 (SC) (ii). Ishikawajma-Harima Heavy Industries Ltd. vs. DIT (2007) 288 ITR 408(SC) (iii). DIT vs. LG Cables (2011) 197 Taxman 100 (Delhi). 10. He further submitted, the principle that PE has no role to play in offshore supply is inherent in the Tax Treaty. Referring to protocol dated 19.06.1995 to India-Germany DTAA, he submitted, if certain supplies are made by the Head Office outside India, then profits out of such sup…

Schindler China Elevator Company Limited, Mumbai vs. The Assistant Commissioner of Income-Tax, Int Tax Circle 4(2)(1), Mumbai

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

ITA 3355/MUM/2023[2020-21]Status: DisposedITAT Mumbai22 Mar 2024AY 2020-21

Bench: Shri Amit Shukla & Shri Amarjit Singh, Schindler China Elevator Vs. The Assistant Company Limited Commissioner Of Income C/O Bansi S. Mehta & Co., Tax, Int. Tax, Circle Merchant Chamber, 3Rd 4(2)(1), Room No. 1708, Floor, 41, New Marin 17Th Floor, Air India Lines, Mumbai – 400020 Building, Nariman Point, Mumbai – 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aascs8166L Appellant .. Respondent

For Appellant: Yogesh TharFor Respondent: Anil Sant
Section 143(1)Section 143(2)Section 143(3)Section 144C(5)Section 9(1)

…in property in the goods shipped by the assessee in the foreign port was transferred at the port of shipment itself. P a g e | 9 Schindler China Elevator Company Ltd. Vs. The ACIT, IT, Circle 4(2)(1) In Ishikawajma-Harima Heavy Industries Ltd. vs DIT, [2007] 288 ITR 408 (SC), the Hon’ble Supreme Court held that only such part of the income, as is attributable to the operations carried out in India can be taxed in India. It was further held that since all parts of the transactions in question, i.e. the transfer of property in goods as well as the payment, were carried out outside the Indian soil, the transaction…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

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

ITA 885/DEL/2023[2017-18]Status: DisposedITAT Delhi13 Mar 2024AY 2017-18

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…were concluded outside India and the property in goods under the offshore agreement had passed outside India. No payment or consideration was received within India. Specially referring to judgment in Ishika Wasma- Harima Heavy Industries Ltd. vs. DIT: [2007] 288 ITR 408 (SC) Ld. Sr. Counsel submitted that Hon'ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 9.2 It was submitted that when the scop…

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

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

ITA 884/DEL/2023[2016-17]Status: DisposedITAT Delhi13 Mar 2024AY 2016-17

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR
Section 143(3)Section 144C(13)

…were concluded outside India and the property in goods under the offshore agreement had passed outside India. No payment or consideration was received within India. Specially referring to judgment in Ishika Wasma- Harima Heavy Industries Ltd. vs. DIT: [2007] 288 ITR 408 (SC) Ld. Sr. Counsel submitted that Hon'ble Supreme Court has held in many words that when the transfer of property in goods and the payment are carried out outside India the transactions cannot be taxed in India. In this context, judgment in CIT vs. Hindustan Shipyard Ltd. 109 ITR 158 (AP) was also relied. 9.2 It was submitted that when the scop…