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

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

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

ITA 2240/DEL/2023[2020-21]Status: DisposedITAT Delhi13 Mar 2024AY 2020-21

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 Intl. Taxation 3(1)(1), New Delhi

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

ITA 2239/DEL/2023[2015-16]Status: DisposedITAT Delhi13 Mar 2024AY 2015-16

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…

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

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

ITA 2086/DEL/2022[2019-20]Status: DisposedITAT Delhi13 Mar 2024AY 2019-20

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

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv
Section 143(3)Section 144C(13)Section 40Section 44B

…the aforesaid decision in the case of Linde AG, was dismissed by the Hon‟ble Supreme Court which is reported in 242 Taxman 371 (SC). 9.6. Further we find that the Hon‟ble Supreme Court in the case of Ishikawajma- Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC), it was observed that even in the case of a composite turnkey contract, the taxability of the different components has to be individually seen. The pertinent observations of the Hon‟ble Supreme Court in this regard are as under: “17.............. The fact that it has been fashioned as a turnkey contract by itself may not be of much significa…

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

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

ITA 2085/DEL/2022[2018-19]Status: DisposedITAT Delhi13 Mar 2024AY 2018-19

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

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv
Section 143(3)Section 144C(13)Section 40Section 44B

…the aforesaid decision in the case of Linde AG, was dismissed by the Hon‟ble Supreme Court which is reported in 242 Taxman 371 (SC). 9.6. Further we find that the Hon‟ble Supreme Court in the case of Ishikawajma- Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC), it was observed that even in the case of a composite turnkey contract, the taxability of the different components has to be individually seen. The pertinent observations of the Hon‟ble Supreme Court in this regard are as under: “17.............. The fact that it has been fashioned as a turnkey contract by itself may not be of much significa…

DCIT Circle-24(2), New Delhi vs. Sunbeam Auto Pvt Ltd., New Delhi

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

ITA 673/DEL/2020[2012-13]Status: DisposedITAT Delhi27 Dec 2023AY 2012-13

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasada.Yr. : 2012-13 Sunbeam Lightweighting Vs. Dcit, Circle 24(2), Solutions Pvt. Ltd. New Delhi – 110002 (Formerly: Sunbeam Auto Pvt. Ltd), 38/6, K.M. Stone, Delhi-Jaipur Highway, Narsingpur, Gurgaon-122001 (Pan: Aafcn8583K) (Appellant) (Respondent) & Ay 2012-13 Dcit, Circle 24(2), Sunbeam Auto Pvt. Ltd, Room No. 328, Cr Building, Vs. S-323, Panchsheel Park, Ip Estate, New Delhi – 110 017 New Delhi – 2 (Pan: Aaabcs2948F) (Respondent) (Appellant) Assessee By : Ms. Sashi Kapila, Adv., Sh. Sushil Kumar, Adv. & Sh. Parvesh Kumar, Adv. Department By : Sh. Anuj Garg, Sr. Dr. Date Of Hearing : 20.12.2023 Date Of Pronouncement : 27.12.2023 Order Per Shamim Yahya, Am : The Assessee As Well As Revenue Has Filed The Cross Appeals Against The Order Of The Ld. Cit(A)-8, New Delhi Relating To Assessment Year 2012-13 On The Following Grounds:-

For Appellant: Ms. Sashi Kapila, Adv., Sh. SushilFor Respondent: Sh. Anuj Garg, Sr. DR
Section 143(3)Section 14ASection 264Section 40Section 43(1)Section 43(6)

…R services rendered outside India are not taxable under the India-USA DTAA. He pointed out that there is no dispute that the non-resident sales agents rendered service outside India. He submitted that in Ishikawajma-Harima Heavy Industries Ltd. vs. DIT (2007) 288 ITR 408 (SC), the Hon’ble Supreme Court held that whatever was payable by a resident to a non-resident by way of technical fees would not always come within the purview of section 9(1)(vii). It must have sufficient territorial nexus with India so as to furnish a basis for imposition of tax as envisaged in Article 12 of DTAA with Japan. In order to 21 ov…

Sunbeam Lightweighting Solutions Pvt Ltd (Formely Sunbeam Auto Pvt Ltd), Gurgaon vs. DCIT Circle-24(2), New Delhi

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

ITA 115/DEL/2020[2012-13]Status: DisposedITAT Delhi27 Dec 2023AY 2012-13

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasada.Yr. : 2012-13 Sunbeam Lightweighting Vs. Dcit, Circle 24(2), Solutions Pvt. Ltd. New Delhi – 110002 (Formerly: Sunbeam Auto Pvt. Ltd), 38/6, K.M. Stone, Delhi-Jaipur Highway, Narsingpur, Gurgaon-122001 (Pan: Aafcn8583K) (Appellant) (Respondent) & Ay 2012-13 Dcit, Circle 24(2), Sunbeam Auto Pvt. Ltd, Room No. 328, Cr Building, Vs. S-323, Panchsheel Park, Ip Estate, New Delhi – 110 017 New Delhi – 2 (Pan: Aaabcs2948F) (Respondent) (Appellant) Assessee By : Ms. Sashi Kapila, Adv., Sh. Sushil Kumar, Adv. & Sh. Parvesh Kumar, Adv. Department By : Sh. Anuj Garg, Sr. Dr. Date Of Hearing : 20.12.2023 Date Of Pronouncement : 27.12.2023 Order Per Shamim Yahya, Am : The Assessee As Well As Revenue Has Filed The Cross Appeals Against The Order Of The Ld. Cit(A)-8, New Delhi Relating To Assessment Year 2012-13 On The Following Grounds:-

For Appellant: Ms. Sashi Kapila, Adv., Sh. SushilFor Respondent: Sh. Anuj Garg, Sr. DR
Section 143(3)Section 14ASection 264Section 40Section 43(1)Section 43(6)

…R services rendered outside India are not taxable under the India-USA DTAA. He pointed out that there is no dispute that the non-resident sales agents rendered service outside India. He submitted that in Ishikawajma-Harima Heavy Industries Ltd. vs. DIT (2007) 288 ITR 408 (SC), the Hon’ble Supreme Court held that whatever was payable by a resident to a non-resident by way of technical fees would not always come within the purview of section 9(1)(vii). It must have sufficient territorial nexus with India so as to furnish a basis for imposition of tax as envisaged in Article 12 of DTAA with Japan. In order to 21 ov…

Hcl Technologies Italy S.P.A, Italy vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 596/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies Belgium Bvba, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 595/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Mexico S. De R L, Mexico vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 594/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Hongkong Sar Limited, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 593/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies (Proprietary) Limited, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 567/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies Bv, Netherlands vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 565/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Australia Services Pty Ltd, Australia vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 564/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies Maylasia Sdn Bhd, Malaysia vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 563/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl (Brazil) Technologies Da Informacao Eireli, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 562/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Canada Inc., Canada vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 561/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Poland Sp Zoo, Poland vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 560/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies Germany Gmbh, Germany vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

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

ITA 559/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies France, New Delhi vs. ACIT, Circle-Int. Tax 2(1)(1), New Delhi

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

ITA 544/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…

Hcl Technologies Philippines Inc., New Delhi vs. ACIT, Circle-Int. Tax 2(1)(1), New Delhi

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

ITA 543/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…d that the place of rendition of services is not relevant for the purpose of exclusion clause under section 9(1)(vii) of the Act. In this regard, we find that the Hon‘ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd vs DIT reported in 288 ITR 408 (SC) had held that fees for technical service would be liable to tax in India only when the services are rendered in India and utilized by the recipient in India. This decision was admittedly rendered prior to the amendment brought in section 9(1)(vii) of the Act by the Finance Act 2007 and Finance Act 2010. In this regard, it would be relevant t…