IT Solution: 399 ITR 34 (SC), DIT v. Samsung Heavy Industries Co Ltd.

399 ITR 505High Court2017#9050 most cited

What is IT Solution: 399 ITR 34 (SC), DIT v. Samsung Heavy Industries Co Ltd. authority for?

A taxpayer does not have a Fixed Place Permanent Establishment (PE) in India if its operations and activities are undertaken outside India, meaning income earned from such activities cannot be taxed in India under Article 7 of the India-France Double Taxation Avoidance Agreement (DTAA). The onus is on the Department to prove the existence of a PE.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2024.

Also referred to as

DIT vs Samsung Heavy Industries Co Ltd · 399 ITR 505 · Fixed Place PE · India-France DTAA · Article 7 · Permanent Establishment · onus on department

Sections most often in play

Section 115ASection 143(3)Section 144C(13)Section 209(1)(d)Section 234BSection 234DSection 44BBB(1)Section 9(1)(vii)

Issues it is cited on

section 44bbbmultilateral instrumentsection 209(1)dependent agent peconstruction pesection 44bbagency pesection 44bfixed place pemake available clauseinterest u/s 234ctreaty benefits

Judgments citing IT Solution: 399 ITR 34 (SC), DIT v. Samsung Heavy Industries Co Ltd.

Ge Hydro France, Delhi vs. DCIT, Circle Int.Tax. 1(3)(1), New Delhi

In the result, the appeal is partly allowed

ITA 1881/DEL/2023[2020-21]Status: DisposedITAT Delhi06 Nov 2024AY 2020-21

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh[Assessment Year: 2020-21] Ge Hydro France, Deputy Commissioner Of Income A-18, 1St Floor, Okhla Tax, Industrial, Phase-Ii, Vs Circle International Tax-1(3)(1), Tehkhand, South East Delhi, Civic Centre, Okhla Industrial Estate S.O. New Delhi-110002 New Delhi-110020 Pan-Aafca1688N Assessee Revenue Assessee By Shri Ajay Vohra, Sr. Adv. & Shri Aditya Vohra, Adv. & Shri Arpit Goyal, Ca Revenue By Shri Vijay B. Vasanta, Cit-Dr & Ms.Sabiha Rizvi, Sr. Dr Date Of Hearing 09.08.2024 Date Of Pronouncement 06.11.2024

Section 143(3)Section 144C(13)Section 144C(5)Section 44B

…Supreme Court in the case of CIT vs eFunds IT Solution reported in 399 ITR 34 (SC) ; DIT vs Samsung Heavy Industries Co Ltd reported in 117 taxmann.com 870 (SC) ; decision of Hon‟ble Jurisdictional High Court in the case of DIT vs Mitsui & Co. Ltd reported in 399 ITR 505 (Del); ITA No.2085 & 2086/Del/2022 GE Hydro France decision of Hon‟ble Jurisdictional High Court in the case of National Petroleum Construction Co vs DCIT reported in 421 ITR 24 (Del). Hence we have no hesitation to hold that the assessee does not have a Fixed Place PE in India and accordingly no income earned by the assessee from operations and…

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)

…0.12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

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)

…0.12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

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)

…0.12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

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)

…0.12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

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

…Supreme Court in the case of CIT vs eFunds IT Solution reported in 399 ITR 34 (SC) ; DIT vs Samsung Heavy Industries Co Ltd reported in 117 taxmann.com 870 (SC) ; decision of Hon‟ble Jurisdictional High Court in the case of DIT vs Mitsui & Co. Ltd reported in 399 ITR 505 (Del); ITA No.2085 & 2086/Del/2022 GE Hydro France decision of Hon‟ble Jurisdictional High Court in the case of National Petroleum Construction Co vs DCIT reported in 421 ITR 24 (Del). Hence we have no hesitation to hold that the assessee does not have a Fixed Place PE in India and accordingly no income earned by the assessee from operations and…

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

…Supreme Court in the case of CIT vs eFunds IT Solution reported in 399 ITR 34 (SC) ; DIT vs Samsung Heavy Industries Co Ltd reported in 117 taxmann.com 870 (SC) ; decision of Hon‟ble Jurisdictional High Court in the case of DIT vs Mitsui & Co. Ltd reported in 399 ITR 505 (Del); ITA No.2085 & 2086/Del/2022 GE Hydro France decision of Hon‟ble Jurisdictional High Court in the case of National Petroleum Construction Co vs DCIT reported in 421 ITR 24 (Del). Hence we have no hesitation to hold that the assessee does not have a Fixed Place PE in India and accordingly no income earned by the assessee from operations and…

Uk Grid Solution Ltd, United Kingdom vs. DCIT, Circle-3(1)(1), International Taxation, New Delhi

The appeal is allowed

ITA 2088/DEL/2022[2019-20]Status: DisposedITAT Delhi17 Apr 2023AY 2019-20

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2088/Del/2022, A.Y. 2019-20 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

Section 143(3)Section 90(2)

….12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

Uk Grid Solution Ltd, United Kingdom vs. DCIT, Circle-3(1)(1), International Taxation, New Delhi

The appeal is allowed

ITA 2087/DEL/2022[2018-2019]Status: DisposedITAT Delhi12 Apr 2023AY 2018-2019

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharmaita No. 2087/Del/2022, A.Y. 2018-19 Uk Grid Solution Limited Vs. Deputy Commissioner Of St. Loeonards Building, Harry Income Tax Kerr Drive, Circle- 3(1)(1), Stafford, St16 1Wt, International Taxation United Kingdom New Delhi Pan : Aaica6271A

Section 143(3)Section 9Section 90(2)

….12.2022 (Del Trib.) 9.8.5 The Ld. Sr. Counsel stressed that the onus is on Department to prove existence of PE and for that he relied CIT vs eFunds IT Solution: 399 ITR 34 (SC), DIT vs Samsung Heavy Industries Co Ltd: 426 ITR 1 (SC), DIT vs Mitsui & Co Ltd: 399 ITR 505 (Del) and AB SciexPte Ltd vs ACIT: 195 ITD 384 (Del Trib.) 9.8.6 As with regard to principles of attribution to business connection/ PE he relied DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), DIT vs Morgan Stanley & Co Inc: 292 ITR 416 (SC), The Anglo French Textile Co Ltd vs CIT: 25 ITR 27 (SC), Annamalais Timber Trust and Co vs CIT: 41 ITR…

Ge Energy Parts Inc vs. Commissioner Ofincome Tax (International Taxation), Delhi - I

ITA/621/2017HC Delhi21 Dec 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 260A

…ich is performed in India has preparatory ITA 621/2017 & connected matters Page 15 of 85 and auxiliary character for the business as a whole of the Appellants herein. Reliance is placed on Director International Taxation v. Mitsui & Co. Ltd. [2017] 399 ITR 505. 21. It is argued that the ITAT in this regard erred in disregarding the OECD Commentary on Model Tax Convention (paragraph 33 on Article 5) which unambiguously states that mere participation in negotiation does not lead to either a fixed place PE or a dependent agent PE ("DAPE"). The view taken by the ITAT is not only contrary to the OECD…

Pr Commr of Income Tax-2, Hyderabad vs. K Ravinder Reddy, Hyderabad

ITTA/621/2017HC Telangana23 Aug 2018

Bench: RAMESH RANGANATHAN,KONGARA VIJAYA LAKSHMI

Dz Bank India Representative Office, Mumbai vs. DCIT (It) RG 2(1)(2), Mumbai

ITA 692/MUM/2016[2011-12]Status: DisposedITAT Mumbai02 May 2018AY 2011-12
For Appellant: S.Sh.Percy Pardiwala and Nitesh JoshiFor Respondent: Shri Samuel Darse,CIT DR
Section 115Section 143(3)Section 254(1)

…o the Article 11 of the India Germany tax treaty,he stated that the assessee had no PE in India. He also argued that the activity report was filed to RBI every year, that the RBI never raised any objection in that regard, he referred cases of Mitusi & Company(399 ITR 505),Nagase & Co.(ITA/1800/ 692/M/16-DZ Bank Mum/2007,dt.12/01/2017), Jamshedpur Motor Accessories Stores(313 ITR 95),Sumitomo Mitsui Banking Corporation(136 ITD 66)and stated that even if there was PE debt claim had to be connected to PE, that the AO had failed to establish the connection, that even if Article 7 of the Treaty was applicable what w…