Ishikawajima Harinia Heavy Industries Ltd. v. DIT, Mumbai

3 SCC 481Supreme Court of India2007#2746 most cited

What is Ishikawajima Harinia Heavy Industries Ltd. v. DIT, Mumbai authority for?

The Supreme Court clarifies that a non-resident's income from offshore supply of equipment is not taxable in India in the absence of a Permanent Establishment (PE), rejecting the blanket application of Section 44BB to all turnkey projects. It also defines 'business connection' for non-residents as requiring a real and intimate link between Indian activities and income.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2025.

Also referred to as

Ishikawajima Harinia Heavy Industries Ltd. · 3 SCC 481 · non-resident taxation · offshore supply · permanent establishment · PE · business connection · Section 44BB · turnkey project · Section 9 · taxability of foreign companies

Issues it is cited on

installation pesection 100section 44bbsection 44bcopyrighted articlesection 5(2)section 9(1)(vi)business connectionsection 9(1)(vii)computer softwarepermanent establishmentsection 260

Judgments citing Ishikawajima Harinia Heavy Industries Ltd. v. DIT, Mumbai

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERLY KNOWN AS NOKIA NETWORK OY)

ITA/166/2020HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERELY KNOWN AS NOKIA NETWORK OY)

ITA/884/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERELY KNOWN AS NOKIA NETWORK OY)

ITA/883/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERELY KNOWN AS NOKIA NETWORK OY)

ITA/882/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERLY KNOWN AS NOKIA NETWORK OY)

ITA/170/2020HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA NETWORK OY

ITA/786/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERLY KNOWN AS NOKIA NETWORK OY)

ITA/171/2020HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERELY KNOWN AS NOKIA NETWORK OY)

ITA/885/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERELY KNOWN AS NOKIA NETWORK OY)

ITA/887/2019HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. NOKIA CORPORATION (FORMERLY KNOWN AS NOKIA NETWORK OY)

ITA/60/2023HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…between the income of an enterprise earned in a Contracting State and the global enterprise of which it may be a constituent. 60. Ultimately, it would have been imperative for the appellants to 17 [(2007) 3 SCC 481] 18 [2016 SCC OnLine Del 2607] Digitally Signed By:KAMLESH KUMAR Signing Date:21.02.2025 18:09:56 Signature Not Verified ITA 785/2019 & other connected matters Page 66 of 66 have established that NIPL was an enterprise through which Nokia OY was operating and carrying on its own…

BAKER HUGHES ENERGY TECHNOLOGIES UK LIMITED,UNITED KINGDOM vs. ACIT, CIRCLE-1(1)(2), INT. TAXATION, NEW DELHI

In the result, the appeal filed by the assessee is allowed and the

ITA 521/DEL/2023[2020-21]Status: DisposedITAT Delhi06 Jun 2023AY 2020-21
For Appellant: Shri Sachit Jolly, AdvocateFor Respondent: Shri Vijay Vasanta, CIT DR
Section 448Section 44B

…t 31.28% of the total contract value (See page 442 of Paper book) 22. The argument that 44BB shall apply to every turnkey project has been specifically rejected by the Hon'ble Supreme Court in the cases of Ishikawajma Harima Heavy Industries Co. Ltd., (2007) 3 SCC 481, Paras 14 at pgs. 10 SA No.100/Del/2023 ITA No.521/Del./2023 238-239, 30 at pg. 245 & 86-88 at pgs. 257-258 of attached compilation; CIT v. Hyundai Heavy Industries (2007) 7 SCC 422, Para 12, 14 & 17 at pgs. 269-271 of attached compilation, wherein the Apex Court held that in the absence of a PE, offshore supply of equipment will not be taxable in…

INCOME TAX OFFICER (IT) 3 (2) (2) , MUMBAI vs. M/S. MACROTECH DEVELOPERS LTD (AS SUCESSOR OF LODHA DEVELOPERS LTD WHICH WAS BELLISSIMO CROWN BUILDMART PVT. LTD, MUMBAI

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 783/MUM/2022[2016-17]Status: DisposedITAT Mumbai24 Jan 2023AY 2016-17

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…uity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must be real and intimate f…

INCOME TAX OFFICER (IT) 3(2) (2) , MUMBAI vs. M/S. MACROTECH DEVELOPERS LTD (AS SUCESSOR OF LODHA DEVELOPERS LTD WHICH WAS BELLISSIMO CROWN BUILDMART PVT. LTD, MUMBAI

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 782/MUM/2022[2015-16]Status: DisposedITAT Mumbai24 Jan 2023AY 2015-16

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…uity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said P a g e | 24 4 Appeals ITO (IT)-3(2)(2) Vs. M/s Macrotech Developer Ltd. activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must be real and intimate f…

INCOME TAX OFFICER (IT) 3(2) (2) , MUMBAI vs. M/S. MACROTECH DEVELOPERS LTD, MUMBAI

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 500/MUM/2022[2015-16]Status: DisposedITAT Mumbai24 Jan 2023AY 2015-16

Bench: Shri Aby T Varkey & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…uity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must be real and intimate from which the income had arisen directly or indirectly. The question of bu…

INCOME TAX OFFICER (IT) 3(2) (2) , MUMBAI vs. M/S. MACROTECH DEVELOPE\RS LTD (AS SUCESSOR OF LODHA DEVELOPERS LTD WHICH WAS SUCESSOR OF BELLISSIMO CROWN BUILDERS P. LTD, MUMBAI

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 498/MUM/2022[2015-16]Status: DisposedITAT Mumbai24 Jan 2023AY 2015-16

Bench: Shri Aby T Varkey & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…uity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must be real and intimate from which the income had arisen directly or indirectly. The question of bu…

INCOME TAX OFFICER (IT), MUMBAI vs. M/S. MACROTECH DEVELOPERS LTD (AS SUCESSOR OF LODHA DEVELOPERS LTD WHICH WAS BELLISSIMO CROWN BUILDMART PVT. LTD, MUMBAI

In the result, all the appeals of the revenue are dismissed and all the cross objection filed by the assesse are also dismissed

ITA 497/MUM/2022[2014-15]Status: DisposedITAT Mumbai24 Jan 2023AY 2014-15

Bench: Shri Aby T Varkey & Shri Amarjit Singh

For Appellant: Niraj ShethFor Respondent: Soumendu Kumar Dash
Section 195Section 201Section 201(1)

…uity between the business of the non-resident and the activity in India (CIT Vs. R.D. Aggarwal and Company (1965) 56 ITR 20 (SC), Carborandum & Co. Vs. CIT (1977) 2 SCC 862 and Ishikawajma-Harima Heavy Industries Itd. Vs. Director of income Tax, Mumbai (2007) 3 SCC 481] The test which is to be applied is to examine the activities in India and whether the said activities have contributed to the business income earned by the non- resident, which has accrued, arisen or received outside India. The business connection must be real and intimate from which the income had arisen directly or indirectly. The question of bu…

DEPUTY COMMISSIONER OF INCOME TAX,, CIRCLE-1, JAIPUR vs. PRAKASH CHANDRA MISHRA, JAIPUR

Appeal of the revenue is dismissed

ITA 305/JPR/2022[2018-19]Status: DisposedITAT Jaipur07 Oct 2022AY 2018-19
For Appellant: Shri Rajeev Sogani (CA), &For Respondent: Shri P. R Meena (CIT)
Section 143(2)Section 143(3)Section 144BSection 165Section 40

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 305/JPR/2022 fu/kZkj.k o"kZ@Assessment Year :2018-19 cuke Deputy Commissioner of Income Prakash Chandra Mishra Vs. Tax, Circle -1, Jaipur C-167 Sai Apartment, Kardhani Jhotwara, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: BDHPM 3080 R vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Rajeev Sogani (…

DIRECTOR OF INCOME TAX -II NEW DELHI vs. M/S SAMSUNG HEAVY INDUSTRIES CO. LTD

C.A. No.-012183-012183 - 2016Supreme Court22 Jul 2020

Bench: HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN

…. 19. In the light of our above discussion, we are of the view that the profits that accrued to the Korean GE for the Korean operations were not taxable in India.” 20. In Ishikawajma-Harima Heavy Industries Ltd. v. Director of Income Tax, Mumbai, (2007) 3 SCC 481, this Court went into a similar double 20 taxation treaty agreement entered into between Japan and India, stating as follows: “84. The distinction between the existence of a business connection and the income accruing or arising out of such business connection is clear and explicit. In the present case, the permanent…

NOKIA NET WORKS NOKIA GROUP FINLAND vs. JCIT, NEW DELHI.,

In the result, all the issues which have been remanded back by the Hon'ble High Court to this Tribunal stands decided in favour of the assessee and against the Revenue

ITA 1964/DEL/2001[1998-1999]Status: DisposedITAT Delhi05 Jun 2018AY 1998-1999

Bench: Shri N.K. Saini, Shri Pramod Kumar & Shri Amit Shukla

For Appellant: Shri Deepak Chopra, Amit SrivastavaFor Respondent: Shri T.M. Shiv Kumar, CIT-DR
Section 142(1)Section 3

…IN THE INCOME TAX APPELLATE TRIBUNAL SPECIAL BENCH, NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER, SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.As. No.1963 & 1964/DEL/2001 Assessment Years: 1997-98 & 1998-99 M/s. Nokia Networks OY, vs. Jt. Commissioner of Keialalahdentie 4, Income Tax, Non Box 300 FIN-00045 Nokia Resident Circle, New Group, Finland. Delhi. TAN/PAN: AAACS 0343R (Appellant) (Respondent) Appellant by: Shri Deepak Chopra, Amit Srivastava, Ankul Goyal, Adv. & Shri Arvind Ranjan, CA. Respondent by: Shri T.M. Shiv Kumar, CIT-DR Date of hearing: 21 12 2017 & 2/04/…

NOKIA NET WORKS NOKIA GRUOP FINLAND vs. DCIT, NEW DELHI.,

In the result, all the issues which have been remanded back by the Hon'ble High Court to this Tribunal stands decided in favour of the assessee and against the Revenue

ITA 1963/DEL/2001[1997-1998]Status: DisposedITAT Delhi05 Jun 2018AY 1997-1998

Bench: Shri N.K. Saini, Shri Pramod Kumar & Shri Amit Shukla

For Appellant: Shri Deepak Chopra, Amit SrivastavaFor Respondent: Shri T.M. Shiv Kumar, CIT-DR
Section 142(1)Section 3

…IN THE INCOME TAX APPELLATE TRIBUNAL SPECIAL BENCH, NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER, SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.As. No.1963 & 1964/DEL/2001 Assessment Years: 1997-98 & 1998-99 M/s. Nokia Networks OY, vs. Jt. Commissioner of Keialalahdentie 4, Income Tax, Non Box 300 FIN-00045 Nokia Resident Circle, New Group, Finland. Delhi. TAN/PAN: AAACS 0343R (Appellant) (Respondent) Appellant by: Shri Deepak Chopra, Amit Srivastava, Ankul Goyal, Adv. & Shri Arvind Ranjan, CA. Respondent by: Shri T.M. Shiv Kumar, CIT-DR Date of hearing: 21 12 2017 & 2/04/…

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