Kotak Mahindra Primus Ltd. v. DDIT

Atos Information Technology Singapore Pte. Ltd., Mumbai vs. D.C.I.T. (International Taxation) Range - 1(1)(2), Mumbai

In the result, appeal is partly allowed

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan ()

…ly. Therefore, he submitted, the payment cannot be regarded as FTS under Article 12(4) of the tax treaty. In support of such contention, he relied upon the following decisions:- I.T.As. No.7144/Mum/2017 & 5744/Mum/2018 8 1. Kotak Mahindra Primus Ltd vs DCIT 11 SOT 578 (Mum) 2. Diamond Services International P Ltd vs UOI 304 ITR 201 (Bom) 12. As regards the cost recharge pertaining to the salary of Mr. Thomas Boutard, the learned Counsel reiterating the stand taken before the departmental authorities submitted, the amount received cannot be treated as FTS. He submitted, the concerned person has assisted Atos In…

Netcracker Technology Solutions Llc, Mumbai vs. DCIT Cir (It) 3(3)(1), Mumbai

The appeal stands partly allowed

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.783/Mum/2017 (िनधा"रण वष" / Assessment Year: 2012-13) Netcracker Technology Solutions Llc Dcit- Circle-3(3)(1) (Formerly Known As Convergys Information International Taxation Management Group Inc.) Mumbai. बनाम/ C/O. Pricewater House Coopers Pvt. Ltd., Vs. Pwc House, Plot 18/A Guru Nanak Road, (Station Road) Bandra (W), Mumbai-400 050 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaccc-8990-N (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Ms. Hirali Desai-Ld.Ar ""थ"कीओरसे/Respondent By : Shri Samuel Darse-Ld. Cit-Dr सुनवाईकीतारीख/ : 01/10/2019 Date Of Hearing घोषणाकीतारीख / : 14/10/2019 Date Of Pronouncement आदेश / O R D E R

…vertheless. Merely because the payment involves a fixed as also a variable payment does not alter the character of service. Dealing with such a type of consideration, a coordinate bench of this Tribunal, in the case Kotak Mahindra Primus Ltd. v. Dy. DIT[2007] 11 SOT 578 (Bom.), had held that "This type of pricing of a service, by segregating the fixed and variable price, is not unusual". That does not, however, alter the character of arrangement. The payment continues to be for service alone. The assessee may charge a fixed amount to cover its costs in employing enhanced capacity so as not to incur losses when th…

Netcracker Technology Solutions Inc., Mumbai vs. Asst DIT Cir (It)1(2)

In the result appeals of all the assessment years are allowed

Bench: Shri G. S. Pannu, Vice- & Shri Pawan Singh

…vertheless. Merely because the payment involves a fixed as also a variable payment does not alter the character of service. Dealing with such a type of consideration, a coordinate bench of this Tribunal, in the case Kotak Mahindra Primus Ltd. v. Dy. DIT[2007] 11 SOT 578 (Bom.), had held that "This type of pricing of a service, by segregating the fixed and variable price, is not unusual". That does not, however, alter the character of arrangement. The payment continues to be for service alone. The assessee may charge a fixed amount to cover its costs in employing enhanced capacity so as not to incur losses when th…

Savvis Communications, Llc (Formerly Known As Savvis Communications Corporation) vs. DCIT (Intl. Tax.) Circle - 4(2)(1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri R.C. Sharma & Shri Pawan Singh & M/S Savvis Communications, Dcit (International Llc (Formerly Known As Taxation), Circle-4(2)(1), Savvis Communication 1St Floor, R.No. 119, Scindia Corporation), 2333 Ponce De House, Ballard Estate, Nm Vs. Leon Blvd., Suite 900, Coral Road, Mumbai-400038. Gables, Florida-33134. Pan: Aancs2551E Appellant Respondent Appellant By : Shri Dhanesh Bafna (Ar) Respondent By : Shri Nishant Samaiya (Dr) Date Of Hearing : 28.02.2018 Date Of Pronouncement : 15.03.2019 Order Under Section 254(1)Of Income Tax Act Per Pawan Singh; 1. This Appeal By Assessee Under Section 253 Of Income-Tax Act (‘Act’) Is Directed Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-

…equipment, or is it the consideration for use of equipment simplicitor by the assessee? In the case of former, the consideration is not taxable, in the case of the latter, the consideration is taxable. In the case of Kotak Mahindra Primus Ltd Vs DDIT [(2007) 11 SOT 578 (Bom)], a coordinate bench, dealing with a situation in which the mainframe computer and the specialized software was used for rendering data processing services to an Indian entity, held so and observed that, "No part of this payment can be said to be for the use of specialized software on which data is processed or for the use of mainframe compu…

Savvis Communications Corporation, Usa vs. DDIT (It) 2(2), Mumbai

In the result, the assessee’s appeal is allowed

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm

…ic equipment, or is it the consideration for use of equipment simpUctor by the assessee? In the case of former, the consideration is not taxable, in the case of the latter, the consideration is taxable. In the case of Kotak Mahindra Primus Ltd Vs DDIT [(2007) 11 SOT 578 (Bom)], a coordinate bench, dealing with a situation in which the mainframe computer and the specialized software was used for rendering data processing services to an Indian entity, held so and observed that, "No part of this payment can be said to be for the use of specialized software on which data is processed or for the use of mainframe compu…

Interoute Communications Ltd, Mumbai vs. DDIT (It) RG 3(1), Mumbai

In the result, appeal of the assessee stands allowed

Bench: Shri Amit Shukla & Shri Ashwani Tanejaita No. : 4976/Mum/2014 (Assessment Year: 2010-11) इंटरऔट को"मु"नकेशन "ल"मटेड Vs Ddit (It) Rg.-3(1), Scindia House, Interoute Communications Ltd, N M Marg, Ballard Estate, C/O Pricewater House Coopers Mumbai -400 038 P Ltd., Pwc House, Plo 18/A, Guru Nanak Ard (Station Rd Bandra (West), Mumbai -400 050 ""यथ" (Respondent) अपीलाथ" (Appellant) : Shri Dhanesh Bafna & अपीलाथ" (Appellant By) Shri Ravi Sawna ""यथ" (Respondent By) : "ी जसबीर चौहान Shri Jasbir Chouhan

…nevertheless. Merely because the payment involves a fixed as also a variable payment does not alter the character of service. Dealing with such a type of consideration, a coordinate bench of this Tribunal, in the case Kotak Mahindra Primus Ltd Vs DDIT [(2007) 11 SOT 578 (Bom)], had held that "This type of pricing of a service, by segregating the fixed and variable price, is not unusual". That does not, however, alter the character of arrangement. The payment continues to be for service alone. The assessee may charge a fixed amount to cover its costs in employing enhanced capacity so as not to incur losses when th…

Interoute Communications Ltd, Mumbai vs. DDIT (It) RG 3(1), Mumbai

In the result, the appeal is allowed

…nevertheless. Merely because the payment involves a fixed as also a variable payment does not alter the character of service. Dealing with such a type of consideration, a coordinate bench of this Tribunal, in the case Kotak Mahindra Primus Ltd Vs DDIT [(2007) 11 SOT 578 (Bom)], had held that “This type of pricing of a service, by segregating the fixed and variable price, is not unusual”. That does not, however, alter the character of arrangement. The payment continues to be for service alone. The assessee may charge a fixed amount to cover its costs in employing enhanced capacity so as not to incur losses when th…

DDIT (It) 2(1), Mumbai vs. Savvis Communications Corporation, Usa

In the result, the appeal is dismissed

…I.T.A. No. 7340/Mum/2012 Assessment years: 2009-10 Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI L BENCH, MUMBAI [Coram: Pramod Kumar AM and Pawan Singh JM] I.T.A. No. 7340/Mum/2012 Assessment years: 2009-10 Dy. Director of Income Tax (Int’l Taxation) Circle 2(1), Mumbai ………………….Appellant Vs. …..……….…Respondent Savvis Communication Corporation 1, Savvis Parkway Town & Country MO USA 63017 [PAN: AANCS2551E] Appearances by: Harsshad Vengurlekar for the appellant Kanchan Kaushal and Dhanesh Bafna for the respondent Date of concluding the hearing : January 6, 2016 Date of pronouncing the order : March 31st,…