Ishikawajima Harima Heavy Industries Ltd. v. DIT

Hcl Singapore Pte Ltd, New Delhi vs. ACIT Circle International Taxation 2(1)(1), New Delhi

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

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

…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 Denmark Aps, New Delhi vs. ACIT Circle- 2(1)(1) International Taxation, New Delhi

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

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

…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…

Jiangdong Fittings Equipments Co. Ltd, Gurgaon vs. ACIT, Circle International Taxation2(1)(2), New Delhi

In the result, appeals are allowed

Bench: Shri G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-Ita Nos. 2290 & 2291/Del/2022 Assessment Years: 2018-19 & 2019-20 Jiangdong Fittings Equipments Versus Acit, Circle 2(1)(2), Co., Unit No. 309, B.C.D. 3Rd International Taxation, Floor, Magnum Tower I, Sector New Delhi. 58, Gurgaon. Pan:Aadcj6890K (Appellant) (Respondent) Assessee By : Sh. Kamal Sawhney, Advocate & Sh. Nishank Vashistha, Advocate Revenue By : Sh. Vizay B. Vasanta, Cit-Dr Date Of Hearing : 10.11.2023 Date Of Pronouncement: 29.11.2023 Order

…E 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. H…

Jiangdong Fittings Equipments Co., Gurgoan vs. ACIT Circle International Taxation2(1)(2), New Delhi

In the result, appeals are allowed

Bench: Shri G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-Ita Nos. 2290 & 2291/Del/2022 Assessment Years: 2018-19 & 2019-20 Jiangdong Fittings Equipments Versus Acit, Circle 2(1)(2), Co., Unit No. 309, B.C.D. 3Rd International Taxation, Floor, Magnum Tower I, Sector New Delhi. 58, Gurgaon. Pan:Aadcj6890K (Appellant) (Respondent) Assessee By : Sh. Kamal Sawhney, Advocate & Sh. Nishank Vashistha, Advocate Revenue By : Sh. Vizay B. Vasanta, Cit-Dr Date Of Hearing : 10.11.2023 Date Of Pronouncement: 29.11.2023 Order

…E 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. H…

Dsd Noell Gmbh, New Delhi vs. DCIT Circle-1(2)(2) International Taxation, New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. DCIT Circle -1(2)(2), International Taxation, New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. ACIT (International Taxation), Circle-1(2)(2), New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. ACIT (International Taxation), Circle-1(2)(2), New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. ACIT (International Taxation), Circle-1(2)(2), New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. ACIT (International Taxation), New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

Dsd Noell Gmbh, New Delhi vs. DCIT (International Taxation), New Delhi

In the result, the appeals of the assessee are allowed

Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

…in his opinion, squarely covers the entire dispute before us. The ld. AR also placed reliance on the following decisions in support of his contentions:- a) Decision of Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd reported in 288 ITR 408 (SC) ; b) Decision of Hon’ble Jurisdictional High Court in the case of DIT vs LG Cables Ltd reported in 197 Taxman 100 (Del) ; c) Decision of Hon’ble Jurisdictional High Court in the case of Linde AG, Linde Engineering Division vs DIT reported in 365 ITR 1 (Del); d) Decision of Hon’ble Supreme Court in the case of Mahabir Commercial Co. Ltd vs…

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

Bench: Sh. M. Balaganesh & Sh.Anubhav Sharma

…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 overco…

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

Bench: Sh. M. Balaganesh & Sh.Anubhav Sharma

…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 overco…

Hitachi, Ltd., New Delhi vs. ACIT, Circle International Taxation 2(1) (1), New Delhi

In the result, assessee’s appeals being ITA no

Bench: Shri Shamim Yahya & Shri Kul Bharat[A.Y.: 2018-19] & [A.Y.: 2019-20]

…ourt in the following cases where on similar facts, it has been held that consideration for supply of Plant & Equipment, from outside India, was not liable to tax in India: (i) Ishikawajima - Harima Heavy Industries Ltd. - Vs. Director of Income tax, Mumbai (228 ITR 408 SC) (ii) Director of Income Tax, New Delhi Vs. LG Cables Ltd. (2011) 197 Taxman 51 (Delhi). (iii) Linde AG, Linde Engineering Division Vs. DDIT (2014) 44 taxmann.com 244 (Delhi). 3(f) That without prejudice, the learned ACIT and DRP have on mere surmise and guesswork erroneously held that the profit attributable to PE in respect of Offshore Sup…

Hitachi, Ltd., Delhi vs. ACIT, Circle International Taxation.2(1)(1), New Delhi

In the result, assessee’s appeals being ITA no

Bench: Shri Shamim Yahya & Shri Kul Bharat[A.Y.: 2018-19] & [A.Y.: 2019-20]

…ourt in the following cases where on similar facts, it has been held that consideration for supply of Plant & Equipment, from outside India, was not liable to tax in India: (i) Ishikawajima - Harima Heavy Industries Ltd. - Vs. Director of Income tax, Mumbai (228 ITR 408 SC) (ii) Director of Income Tax, New Delhi Vs. LG Cables Ltd. (2011) 197 Taxman 51 (Delhi). (iii) Linde AG, Linde Engineering Division Vs. DDIT (2014) 44 taxmann.com 244 (Delhi). 3(f) That without prejudice, the learned ACIT and DRP have on mere surmise and guesswork erroneously held that the profit attributable to PE in respect of Offshore Sup…

Utstarcom Inc., Gurgaon vs. ADIT, New Delhi

In the result, appeal is dismissed

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2004-05 Ut Starcom Inc., Vs. Acit, India Branch Office, Gurgaon Circle, 805, Signature Towers-B, Gurgaon South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent) With Assessment Year: 2005-06 Ut Starcom Inc., Vs. Adit, (Formerly Operating Through A Circle-3(1), Branch Office In India), International Taxation, 10Th Floor, Signature Towers- New Delhi B, South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent) With Assessment Year: 2004-05 Ddit, Vs. Ut Starcom Inc., Circle-3(1) & 3(2) India Branch Office, International Taxation, 805, Signature Towers-B, New Delhi South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent)

…ritory of India, such receipts cannot be taxable in India. In this context, he relied upon a 14 | P a g e ITA Nos.998 & 1858/Del/2009 & 187/Del/2014 & decision of the Hon’ble Supreme court in case of Ishikawajma- Harima Heavy Industries Ltd. Vs DIT [2007] 288 ITR 408 (SC). Without prejudice, he submitted, even as per the provisions of the Act, only such part of the income attributable to the operation carried out in India can be taxed in India. Thus, he submitted, the entire receipts, which includes, manufacturing and supply of equipment software from outside India, wherein, there is no involvement of th…

Ut Starcom Inc., Gurgaon vs. ACIT, Gurgaon

In the result, appeal is dismissed

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2004-05 Ut Starcom Inc., Vs. Acit, India Branch Office, Gurgaon Circle, 805, Signature Towers-B, Gurgaon South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent) With Assessment Year: 2005-06 Ut Starcom Inc., Vs. Adit, (Formerly Operating Through A Circle-3(1), Branch Office In India), International Taxation, 10Th Floor, Signature Towers- New Delhi B, South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent) With Assessment Year: 2004-05 Ddit, Vs. Ut Starcom Inc., Circle-3(1) & 3(2) India Branch Office, International Taxation, 805, Signature Towers-B, New Delhi South City-1, Gurgaon, Haryana Pan :Aaacu5017A (Appellant) (Respondent)

…ritory of India, such receipts cannot be taxable in India. In this context, he relied upon a 14 | P a g e ITA Nos.998 & 1858/Del/2009 & 187/Del/2014 & decision of the Hon’ble Supreme court in case of Ishikawajma- Harima Heavy Industries Ltd. Vs DIT [2007] 288 ITR 408 (SC). Without prejudice, he submitted, even as per the provisions of the Act, only such part of the income attributable to the operation carried out in India can be taxed in India. Thus, he submitted, the entire receipts, which includes, manufacturing and supply of equipment software from outside India, wherein, there is no involvement of th…