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.

Which sections of the Income Tax Act does Ishikawajima Harima Heavy Industries Ltd. v. DIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 234B, Section 9(1)(vii), Section 144C(13), Section 144C(5), Section 195.

Ishikawajima Harima Heavy Industries Ltd. v. DIT (288 ITR 408)

Q: How many judgments cite Ishikawajima Harima Heavy Industries Ltd. v. DIT?

394 judgments on BharatTax cite Ishikawajima Harima Heavy Industries Ltd. v. DIT (288 ITR 408), spanning 2010 to 2026.

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

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

ITA 1679/MUM/2022[2018-2019]Status: DisposedITAT Mumbai02 Mar 2023AY 2018-2019

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

For Appellant: Shri Yogesh Thar a/wFor Respondent: Shri Amit Kumar Soni

Section 142(1)Section 143(2)Section 143(3)Section 144C(13)Section 144C(5)Section 9(1)

…s of loss of or damage to the goods from the port of shipment. Therefore, the title in property in the goods shipped by the assessee in the foreign port was transferred at the port of shipment itself. 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…

Smiths Detection Asia Pacific Pte Limited, Delhi vs. DCIT, Circle-3(1)(2) Int. Taxation, New Delhi

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

ITA 2258/DEL/2022[2019-20]Status: DisposedITAT Delhi22 Feb 2023AY 2019-20

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: ShriHimanshu Sinha, AdvFor Respondent: Shri Sukesh Kumar Jain – CIT-DR

Section 143(3)

…dia and the sale was also affected outside of India and title to the property in the equipment passed outside of India. 14. Strong reliance was placed on the decision of the Hon'ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Limited 288 ITR 408 and Hyundai Heavy Industries Co. Ltd 291 ITR 482. 15. Per contra, the ld. DR strongly supported the findings of the Assessing Officer/DRP. Referring to the remand report submitted by the Assessing Officer, the ld. DR pointed out that via communication letter written by the assessee company to the CIAL dated 22.08.2018 and communication addresse…

M/S Honeywell Technology Solutions Lab Private Limited, Bangalore vs. Joint Commissioner of Income Tax Special Range-3, Bangalore

ITA 2891/BANG/2018[2013-14]Status: DisposedITAT Bangalore31 Oct 2022AY 2013-14

Bench: Shri Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2013-14

For Appellant: Smt. Shreya Loyalaka, AdvocateFor Respondent: Shri Dilip Jr. Standing Counsel for Dept. (DR)

Section 192Section 195Section 40Section 80JSection 9(1)(vii)

…ome from any source outside India. He also referred to the Explanation given under sec. 9(2) and observed that the said Explanation was inserted to undo the ratios laid down by the Hon’ble Supreme court in the case of Ishikawajima Harima Heavy Industries Ltd (288 ITR 408) and Jindal Thermal Power Company Ltd (321 ITR 31)(Kar). Accordingly, the Ld CIT(A) held that (a) the non-residents have provided technical services to the assessee company and therefore, the payments are “fee for technical services” liable for deduction of tax at source. (b) With regard to Article 15 of India-USA DTAA, the Ld CIT(A) held that t…

DCIT (International Taxation), New Delhi vs. M/S Aecom Asia Company Ltd., Gurgaon

In the result, the appeal of the Revenue and the cross objection filed by the assessee are dismissed

ITA 952/DEL/2017[2010-11]Status: DisposedITAT Delhi20 Oct 2022AY 2010-11

Bench: Shri Narendra Kumar Billaiyaa N D Shri Challa Nagendra Prasad

For Appellant: Shri Ankit SahaniFor Respondent: Sr. D.R

Section 115ASection 44D

…ent or contract in accordance with which the receipts have been offered to tax as FTS and in this connection the ld. Counsel placing reliance on the decision of the Hon’ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT [(2007) 288 ITR 408 (SC)] submits that the Apex court held that where separate consideration is paid for separate work undertaken the contract cannot be construed as a composite contract. The ld. Counsel for the assessee submits the High Court further held that applying the principle of composite transactions which have some operations in one territory and some in o…

M/S. Joy Global (Uk) Ltd. (Formerly As Joy Mining Machinery Ltd.), Kolkata vs. The DCIT (Int. Taxa.)-1, Ahmedabad

In the result, we allow the Grounds of Appeal of the assessee

ITA 16/AHD/2021[2017-18]Status: DisposedITAT Ahmedabad21 Sept 2022AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2017-18

For Appellant: Shri Bandish Soparkar, AR &For Respondent: Shri Alok Kumar, CIT DR

Section 143(1)Section 143(3)Section 144C(13)Section 234BSection 44DSection 9(1)(vi)Section 92E

…have been provided and it has been provided that the price for Maintenance Spares determined by SECL was calculated based on production achieved during annual production cycle. 20. The Hon'ble Supreme Court in the case of Ishikawajima-Harima Heavy Industries 288 ITR 408 had the occasion to consider the applicability of Section 9 of the Act read with Article 7 & 12 of the DTAA between Indian and Japan wherein the appellant was a company incorporated in Japan and included, interalia, in business of construction of storage tanks, engineering, etc. - it entered into an agreement with Petronet LNG Limitedfor setting…

M/S. Subex Limited, Bangalore vs. The Joint Commissioner of Income Tax (OSD), Cirlce- 12(3), Bangalore

ITA 2638/BANG/2019[2008-09]Status: DisposedITAT Bangalore06 Sept 2022AY 2008-09

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Respondent: Smt.Vandana Sagar, CIT-DR

Section 143(2)Section 143(3)Section 195Section 260ASection 40Section 92C

…the services are rendered in India and as well as utilized in India. The Hon’ble Apex Court in the case of Ishikawajima – Harima Heavy Industries 7 ITA No.715/B/2014 & IT(TP)A No.2638/B/2019. M/s.Subex Technologies Limited & Subex Limited. Ltd. v. DIT [2007] 288 ITR 408 (SC) has held that for Section 9(1)(vii) of the I.T.Act to be applicable, it is necessary that services provided by a non-resident assessee under a contract should not only be utilized within India, but should also be rendered in India or should have such a live link with India that entire income from fees as envisaged in Article 12 of DTAA becom…

M/S Subex Technologies Limited, Bangalore vs. JCIT, Bangalore

ITA 715/BANG/2014[2008-09]Status: DisposedITAT Bangalore06 Sept 2022AY 2008-09

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Respondent: Smt.Vandana Sagar, CIT-DR

Section 143(2)Section 143(3)Section 195Section 260ASection 40Section 92C

…the services are rendered in India and as well as utilized in India. The Hon’ble Apex Court in the case of Ishikawajima – Harima Heavy Industries 7 ITA No.715/B/2014 & IT(TP)A No.2638/B/2019. M/s.Subex Technologies Limited & Subex Limited. Ltd. v. DIT [2007] 288 ITR 408 (SC) has held that for Section 9(1)(vii) of the I.T.Act to be applicable, it is necessary that services provided by a non-resident assessee under a contract should not only be utilized within India, but should also be rendered in India or should have such a live link with India that entire income from fees as envisaged in Article 12 of DTAA becom…

DCIT, Chennai vs. M/S. United India Insurance Co. Ltd., Chennai

In the result, all the appeals filed by the Revenue for the assessment years 2003-04, 2004-05, 2005-06, 2006-07, 2008-09,

ITA 1673/CHNY/2011[2003-04]Status: DisposedITAT Chennai26 Aug 2022AY 2003-04

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1673, 1688, 1689, 1691/Chny/2011 िनधा"रण वष" / Assessment Years: 2003-04, 2004-05, 2005-06, 2006-07 Assistant Commissioner Of Income M/S. United India Insurance Co. Tax, V. Ltd., Large Tax Payer Unit, 24, Whites Road, Chennai – Chennai. 600 014. [Pan: Aaacu-5552-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos: 1693/Chny/2011, 36/Chny/2014 & 696/Chny/2014 िनधा"रण वष" / Assessment Years: 2008-09, 2009-10 & 2010-11 Deputy Commissioner Of Income M/S. United India Insurance Co. Tax, V. Ltd., Large Tax Payer Unit, 24, Whites Road, Chennai – Chennai. 600 014. [Pan: Aaacu-5552-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. S. Sundararaman, Ca Department Represented By : Shri. M. Swaminathan, Sr.Standing Counsel & Ms. V. Pushpa, Jr. Standing Counsel सुनवाई क" तार"ख/Date Of Hearing : 10.08.2022 घोषणा क" तार"ख/Date Of Pronouncement : 26.08.2022 आदेश /O R D E R

Section 195Section 195(1)Section 40Section 5(2)(b)

…o accrue or arise in India. Insofar as observations of the Assessing Officer with regard to reinsurance contracts were signed in India is not relevant as held by the Hon'ble Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…

DCIT, Chennai vs. M/S. Royal Sundaram Alliance Insurance Co. Ltd., Chennai

In the result, appeal filed by the Revenue for the Assessment year

ITA 1666/CHNY/2011[2005-06]Status: DisposedITAT Chennai26 Aug 2022AY 2005-06

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1356/Chny/2013, 1626/Chny/2011 & 2310/Chny/2014 िनधा"रण वष" / Assessment Years: 2009-10, 2005-06 & 2010-11 M/S. Royal Sundaram Alliance Assistant Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1628, 1629 & 1630/Chny/2011 िनधा"रण वष" / Assessment Years: 2006-07, 2007-08 & 2008-09 M/S. Royal Sundaram Alliance Deputy Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1666/Chny/2011 िनधा"रण वष" / Assessment Years: 2005-06 Assistant Commissioner Of Income M/S. Royal Sundaram Alliance Tax, V. Insurance Company Limited Large Tax Payer Unit, “Sundaram Towers” Chennai. 45 & 46, Whites Road, Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. Sandeep Bagmar, Advocate

Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 195Section 3Section 40Section 5

…reinsurance contracts were signed in India is not relevant as held by the Hon'ble :-30-: ITA. No:1356 /Chny/2013, 1626, 1628, 1629, 1630 & 1666/Chny/2011 & 2310/Chny/2014 Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…

M/S. Royal Sundaram Alliance Insurance Company Limited, Chennai vs. ACIT, Chennai

In the result, appeal filed by the Revenue for the Assessment year

ITA 1630/CHNY/2011[2008-09]Status: DisposedITAT Chennai26 Aug 2022AY 2008-09

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1356/Chny/2013, 1626/Chny/2011 & 2310/Chny/2014 िनधा"रण वष" / Assessment Years: 2009-10, 2005-06 & 2010-11 M/S. Royal Sundaram Alliance Assistant Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1628, 1629 & 1630/Chny/2011 िनधा"रण वष" / Assessment Years: 2006-07, 2007-08 & 2008-09 M/S. Royal Sundaram Alliance Deputy Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1666/Chny/2011 िनधा"रण वष" / Assessment Years: 2005-06 Assistant Commissioner Of Income M/S. Royal Sundaram Alliance Tax, V. Insurance Company Limited Large Tax Payer Unit, “Sundaram Towers” Chennai. 45 & 46, Whites Road, Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. Sandeep Bagmar, Advocate

Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 195Section 3Section 40Section 5

…reinsurance contracts were signed in India is not relevant as held by the Hon'ble :-30-: ITA. No:1356 /Chny/2013, 1626, 1628, 1629, 1630 & 1666/Chny/2011 & 2310/Chny/2014 Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…

M/S. Royal Sundaram Alliance Insurance Company Limited, Chennai vs. ACIT, Chennai

In the result, appeal filed by the Revenue for the Assessment year

ITA 1629/CHNY/2011[2007-08]Status: DisposedITAT Chennai26 Aug 2022AY 2007-08

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1356/Chny/2013, 1626/Chny/2011 & 2310/Chny/2014 िनधा"रण वष" / Assessment Years: 2009-10, 2005-06 & 2010-11 M/S. Royal Sundaram Alliance Assistant Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1628, 1629 & 1630/Chny/2011 िनधा"रण वष" / Assessment Years: 2006-07, 2007-08 & 2008-09 M/S. Royal Sundaram Alliance Deputy Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1666/Chny/2011 िनधा"रण वष" / Assessment Years: 2005-06 Assistant Commissioner Of Income M/S. Royal Sundaram Alliance Tax, V. Insurance Company Limited Large Tax Payer Unit, “Sundaram Towers” Chennai. 45 & 46, Whites Road, Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. Sandeep Bagmar, Advocate

Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 195Section 3Section 40Section 5

…reinsurance contracts were signed in India is not relevant as held by the Hon'ble :-30-: ITA. No:1356 /Chny/2013, 1626, 1628, 1629, 1630 & 1666/Chny/2011 & 2310/Chny/2014 Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…

M/S. Royal Sundaram Alliance Insurance Company Limited, Chennai vs. ACIT, Chennai

In the result, appeal filed by the Revenue for the Assessment year

ITA 1628/CHNY/2011[2006-07]Status: DisposedITAT Chennai26 Aug 2022AY 2006-07

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1356/Chny/2013, 1626/Chny/2011 & 2310/Chny/2014 िनधा"रण वष" / Assessment Years: 2009-10, 2005-06 & 2010-11 M/S. Royal Sundaram Alliance Assistant Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1628, 1629 & 1630/Chny/2011 िनधा"रण वष" / Assessment Years: 2006-07, 2007-08 & 2008-09 M/S. Royal Sundaram Alliance Deputy Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1666/Chny/2011 िनधा"रण वष" / Assessment Years: 2005-06 Assistant Commissioner Of Income M/S. Royal Sundaram Alliance Tax, V. Insurance Company Limited Large Tax Payer Unit, “Sundaram Towers” Chennai. 45 & 46, Whites Road, Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. Sandeep Bagmar, Advocate

Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 195Section 3Section 40Section 5

…reinsurance contracts were signed in India is not relevant as held by the Hon'ble :-30-: ITA. No:1356 /Chny/2013, 1626, 1628, 1629, 1630 & 1666/Chny/2011 & 2310/Chny/2014 Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…

M/S. Royal Sundaram Alliance Insurance Company Limited, Chennai vs. ACIT, Chennai

In the result, appeal filed by the Revenue for the Assessment year

ITA 1626/CHNY/2011[2005-06]Status: DisposedITAT Chennai26 Aug 2022AY 2005-06

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1356/Chny/2013, 1626/Chny/2011 & 2310/Chny/2014 िनधा"रण वष" / Assessment Years: 2009-10, 2005-06 & 2010-11 M/S. Royal Sundaram Alliance Assistant Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1628, 1629 & 1630/Chny/2011 िनधा"रण वष" / Assessment Years: 2006-07, 2007-08 & 2008-09 M/S. Royal Sundaram Alliance Deputy Commissioner Of Insurance Company Limited V. Income Tax, “Sundaram Towers” Large Tax Payer Unit, 45 & 46, Whites Road, Chennai. Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1666/Chny/2011 िनधा"रण वष" / Assessment Years: 2005-06 Assistant Commissioner Of Income M/S. Royal Sundaram Alliance Tax, V. Insurance Company Limited Large Tax Payer Unit, “Sundaram Towers” Chennai. 45 & 46, Whites Road, Chennai – 600 002. [Pan: Aabcr-7106-G] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. Sandeep Bagmar, Advocate

Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 195Section 3Section 40Section 5

…reinsurance contracts were signed in India is not relevant as held by the Hon'ble :-30-: ITA. No:1356 /Chny/2013, 1626, 1628, 1629, 1630 & 1666/Chny/2011 & 2310/Chny/2014 Supreme Court in the case of Ishikawajima Harima Heavy Industries Ltd. Vs. DIT (2007) 288 ITR 408 (SC), where it was observed that contract signed in India is of no material consequence, since all activities in connection with off shore supply were outside India and therefore, cannot be deemed to have accrued or arose in India. Further, income may accrue not at place where asset or property is located or where insurer is resident, but where r…