Linde AG, Linde Engineering Division v. DDIT

365 ITR 1High Court2014#2100 most cited

What is Linde AG, Linde Engineering Division v. DDIT authority for?

When contractual obligations are for an entire project, only the income reasonably attributable to operations carried on in India is deemed to accrue or arise in India and falls within the tax net. This principle applies even in consortium arrangements where members have broader contractual roles, and income from supply of equipment should be characterized appropriately.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

Linde AG Linde Engineering Division · 365 ITR 1 Delhi HC · Section 9(1) Income-tax Act · income deemed to accrue in India · attribution of income to Indian operations · consortium arrangement taxability · supply of equipment income characterization · Permanent Establishment (PE) India · international taxation principles

Sections most often in play

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

Issues it is cited on

section 44bbbsection 9(l)(vii)section 44bbsection 9(2)multilateral instrumentsection 209(1)section 44bdependent agent pecommercial substanceconstruction pesection 9(l)agency pe

Judgments citing Linde AG, Linde Engineering Division v. DDIT

M/S. Backbone Projects Ltd., Ahmedabad vs. The Income Tax Officer, Ward-92), Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 2621/AHD/2011[2008-09]Status: DisposedITAT Ahmedabad25 Apr 2019AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 2621/Ahd/2011 2008-09 M/S Backbone Ito, Ward- 9 (2) Projects Ltd. Ahmedabad Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Cross Road, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 2. 1486/Ahd/2013 2009-10 Ito, Ward- 9 (2), M/S Backbone Projects Ahmedabad Ltd. Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 3. 2283/Ahd/2016 2010-11 Ito, Ward- 5(2)(2) M/S Backbone Projects Ahmedabad- Ltd. Backbone 300009 Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 4. 608/Ahd/2011 2007-08 M/S. Knr Bpl Ito, Ward-9(2), Joint Venture, A/9, Ahmedabad Ays : 2008-09, 2009-10, 2010-11, 2007-08, 2008-09, 2009-10

For Appellant: Shri M. K. Patel, ARFor Respondent: Shri O.P. Sharma CIT DR & Shri
Section 145Section 234A

…ed by a decision of a Division Bench, which made references to several other judgments, including those of the Supreme Court when a "person" is said to exist as an association of persons. In that decision, i.e. Linde AG, Linde Engg. Division v. Dy. DIT [2014] 365 ITR 1/224 Taxman 43 (Mag.)/44 taxmann.com 244 (Delhi), first, the Court considered the definition of Association of Persons (Section 2 (31)) and then analyzed it in the following terms: "(31) 'person' includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether i…

M/S. Knr Bpl (Jv), Ahmedabad vs. The Income Tax Officer, Ward-9(2), Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 2518/AHD/2011[2008-09]Status: DisposedITAT Ahmedabad25 Apr 2019AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 2621/Ahd/2011 2008-09 M/S Backbone Ito, Ward- 9 (2) Projects Ltd. Ahmedabad Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Cross Road, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 2. 1486/Ahd/2013 2009-10 Ito, Ward- 9 (2), M/S Backbone Projects Ahmedabad Ltd. Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 3. 2283/Ahd/2016 2010-11 Ito, Ward- 5(2)(2) M/S Backbone Projects Ahmedabad- Ltd. Backbone 300009 Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 4. 608/Ahd/2011 2007-08 M/S. Knr Bpl Ito, Ward-9(2), Joint Venture, A/9, Ahmedabad Ays : 2008-09, 2009-10, 2010-11, 2007-08, 2008-09, 2009-10

For Appellant: Shri M. K. Patel, ARFor Respondent: Shri O.P. Sharma CIT DR & Shri
Section 145Section 234A

…ed by a decision of a Division Bench, which made references to several other judgments, including those of the Supreme Court when a "person" is said to exist as an association of persons. In that decision, i.e. Linde AG, Linde Engg. Division v. Dy. DIT [2014] 365 ITR 1/224 Taxman 43 (Mag.)/44 taxmann.com 244 (Delhi), first, the Court considered the definition of Association of Persons (Section 2 (31)) and then analyzed it in the following terms: "(31) 'person' includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether i…

The ITO, Ward 9(2), Ahmedabad vs. M/S. Knr Bpl (Jv), Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 1485/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad26 Mar 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 2621/Ahd/2011 2008-09 M/S Backbone Ito, Ward- 9 (2) Projects Ltd. Ahmedabad Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Cross Road, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 2. 1486/Ahd/2013 2009-10 Ito, Ward- 9 (2), M/S Backbone Projects Ahmedabad Ltd. Backbone Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 3. 2283/Ahd/2016 2010-11 Ito, Ward- 5(2)(2) M/S Backbone Projects Ahmedabad- Ltd. Backbone 300009 Construction P. Ltd. (Jv) A-9, Kumud Apartment Stadium Five Roads, Navarangpura, Ahmedabad-09 Pan No. Aah Fb9 131 E 4. 608/Ahd/2011 2007-08 M/S. Knr Bpl Ito, Ward-9(2), Joint Venture, A/9, Ahmedabad Ays : 2008-09, 2009-10, 2010-11, 2007-08, 2008-09, 2009-10

For Appellant: Shri M. K. Patel, ARFor Respondent: Shri O.P. Sharma CIT DR & Shri
Section 145Section 234A

…ed by a decision of a Division Bench, which made references to several other judgments, including those of the Supreme Court when a "person" is said to exist as an association of persons. In that decision, i.e. Linde AG, Linde Engg. Division v. Dy. DIT [2014] 365 ITR 1/224 Taxman 43 (Mag.)/44 taxmann.com 244 (Delhi), first, the Court considered the definition of Association of Persons (Section 2 (31)) and then analyzed it in the following terms: "(31) 'person' includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether i…

DDIT, Dehradun vs. M/S. Association of Persons (AOP) of M/S. Schlumberger Asia Services Ltd. & Transocean Off-Shore Deepwater Drilling Inc., Dehradun

ITA 6171/DEL/2014[2010-11]Status: DisposedITAT Delhi30 Nov 2018AY 2010-11

Bench: Before Shri R.K.Panda & Shri Sudhanshu Srivastava

For Appellant: Sh. Amit Arora, CA, Sh. Vishal Mishra, CAFor Respondent: Shri G.K.Dhall, CIT(DR)
Section 144Section 148Section 44B

…were CO No. 185,186/Del/2015 (AOP of Schlumberger Asia Services Ltd. & Transocean Off-Shore Deepwater Drilling Inc.) dismissed by following the judgment of the Hon’ble Delhi High Court in the case of Linde AG Linde Engineering Division vs. DDI reported in 365 ITR 1 (Delhi). The relevant observations of the Co-ordinate bench are contain in paragraph 4.5 of the said order of the Tribunal and in view of the facts being identical and respectfully following the order of the Co-ordinate bench, we dismiss both the appeals of the department. 6.0 Since the department’s appeals have been dismissed, the assessee’s ch…

DDIT, Dehradun vs. M/S. Association of Persons (AOP) of M/S. Schlumberger Asia Services Ltd. & Transocean Off-Shore Deepwater Drilling Inc., Dehradun

ITA 6170/DEL/2014[2009-10]Status: DisposedITAT Delhi30 Nov 2018AY 2009-10

Bench: Before Shri R.K.Panda & Shri Sudhanshu Srivastava

For Appellant: Sh. Amit Arora, CA, Sh. Vishal Mishra, CAFor Respondent: Shri G.K.Dhall, CIT(DR)
Section 144Section 148Section 44B

…were CO No. 185,186/Del/2015 (AOP of Schlumberger Asia Services Ltd. & Transocean Off-Shore Deepwater Drilling Inc.) dismissed by following the judgment of the Hon’ble Delhi High Court in the case of Linde AG Linde Engineering Division vs. DDI reported in 365 ITR 1 (Delhi). The relevant observations of the Co-ordinate bench are contain in paragraph 4.5 of the said order of the Tribunal and in view of the facts being identical and respectfully following the order of the Co-ordinate bench, we dismiss both the appeals of the department. 6.0 Since the department’s appeals have been dismissed, the assessee’s ch…

ITO, Gurgaon vs. M/S Kec-Delco-Varaha (Jv), Gurgaon

In the result, the appeals of the department are dismissed

ITA 2327/DEL/2016[2011-12]Status: DisposedITAT Delhi18 Sept 2018AY 2011-12

Bench: Sh. R.K. Panda & Ms. Suchitra Kambleassessment Year: 2011-12

Section 40Section 40A

…joint venture which have been formed only to secure the contract cannot be subjected to tax as Association of Person (AOP). The Hon’ble High Court elaborately discussed the case of Linde AG. Linde Engineering Division vs. Deputy Director of Income Tax (2014) 365 ITR 1 (Delhi) to come to this conclusion. (ii) Further Hon’ble High Court (Delhi) in Income Tax Act No.146/2010 decided on 11.02.2010 in the case of CIT Vs. Oriental Structure Engineers Pvt. Ltd. has also observed that in the case of JV of such kind Section 40A (2) is not 4 applicable. There are other judicial findings in this regard arriving at the sam…

DCIT (It) 2(1)(1), Mumbai vs. Cameron Australasia Pty . Ltd, Mumbai

ITA 3711/MUM/2016[2011-12]Status: DisposedITAT Mumbai13 Jul 2018AY 2011-12

Bench: Shri G.S.Pannu, Am & Shri Ravish Sood, Jm Dcit (It)-2(1(1), M/S Cameron Australasia Pty. 1St Floor, Scindia House, Ltd. C/O Pricewater Cooper Pvt. बिधम/ Ballard Pier, N.M.Road, Ltd. Plot No. 18A, Pwc House, Vs. Mumbai 400038 Gurunanak Road, Bandra (W) Mumbai 400050 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaecc0202H (अऩीराथी /Appellant) (प्रत्मथी / Respondent) :

For Appellant: Shri Arvind Sonde, A.RFor Respondent: Shri M.V. Rajguru, Sr. D.R
Section 143(3)Section 144C(3)Section 44BSection 44D

…in a case where the scope of work was divisible the taxability of independent revenue streams would need to be evaluated separately, relied on the judgment of the Hon‟ble High Court of Delhi in the case of Linde AG, Linde Engineering Division Vs. DDIT (2014) 361 ITR 1 (Del). On the basis of his aforesaid observations, it was concluded by the CIT(A) that though the contract may be an indivisible one, however, for the tax purpose, if the contract did specify the amounts that were payable with respect to various activities carried out by the parties, then the income could accrue or arise at various stages on accoun…

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

…under the domestic law, i.e., under the provision of Income Tax Act itself, then there is no requirement to examine the provisions of DTAA. In this context, Ld. Counsel has relied upon the judgment of Hon'ble Delhi High Court in the case of Linde AG vs. DIT, 365 ITR 1, wherein the Hon'ble High Court has observed that DTAA do not contain any charging provision by virtue of which income tax is levied, because tax 37 I.T.As. No.1963 & 1964/DEL/2001 is charged by virtue of Section 4 r.w.s. 5 and it is only in the event that assessee is liable to pay tax under the Income Tax Act that the question of examining, whet…

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

…under the domestic law, i.e., under the provision of Income Tax Act itself, then there is no requirement to examine the provisions of DTAA. In this context, Ld. Counsel has relied upon the judgment of Hon'ble Delhi High Court in the case of Linde AG vs. DIT, 365 ITR 1, wherein the Hon'ble High Court has observed that DTAA do not contain any charging provision by virtue of which income tax is levied, because tax 37 I.T.As. No.1963 & 1964/DEL/2001 is charged by virtue of Section 4 r.w.s. 5 and it is only in the event that assessee is liable to pay tax under the Income Tax Act that the question of examining, whet…

DCIT (It) -4(2)(1), Mumbai vs. Safegate International Ab, Mumbai

In the result, appeal is dismissed

ITA 1599/MUM/2015[2011-12]Status: DisposedITAT Mumbai08 Nov 2017AY 2011-12

Bench: Shri Saktijit Dey & Shri G. Manjunatha

For Appellant: Shri Madhur Agarwal a/wFor Respondent: Shri Samuel Darse

…iemens Aktiengesellschaft, ITA no.1033 of 2011 (Bom.), dated 20.11.2012; ii) DIT(IT) v/s Toyo Engineering Corporation, ITA no.663 of 2011, dated 23.01.2013; iii) DIT v/s Nokia Networks OY, 358 ITR 259 (Del.); iv) Linde AG, Linde Engineering Division v/s DDIT, 365 ITR 1 (Del.); v) DIT(IT) v/s Xelo Pty Ltd., 203 taxman 475 (Bom.); and vi) ILJIN Electric Co. Ltd. v/s DCIT, ITA no.1023 and 5642/ Mum./2015, dated 14.10.2016. 7. We have patiently and carefully heard the rival submissions and perused the material on record. We have also applied our mind to the 14 M/s. Safegate International A.B. decisions relied upon. A…

Iljin Electric Co. Ltd, Mumbai vs. DCIT (It) Cir 2(2)(1), Mumbai

In the result, appeal for A

ITA 1023/MUM/2015[2011-12]Status: DisposedITAT Mumbai14 Oct 2016AY 2011-12

Bench: Shri Jason P. Boaz, Accoutant Member & Shri Saktijit Dey

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Jasbir Chauhan
Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 234D

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SHRI JASON P. BOAZ, ACCOUTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA no.1023/Mum./2015 (Assessment Year : 2011–12) ITA no.5642/Mum./2015 (Assessment Year : 2012–13) ILJIN Electric Co. Ltd. C/o Deloitte Haskins And Sells LLP Indiabulls Finance Centre Tower–3, 27th – 32nd Floor ……………. Appellant Senapati Bapat Marg Elphinstone (W), Mumbai 400 013 PAN – AABCI5883M v/s Dy. Commissioner of Income Tax (I.T) ……………. Respondent Circle–2(2)(1), Mumbai Assessee by : Shri Madhur Agarwal Revenue by : Shri Jasbir Chauhan Date of Hearing – 27.06.2016 D…

ITO vs. Sri. N.P. Bagwa & Others

In the result, all these appeals and cross objections are allowed

ITA 1012/BANG/2013[2008-09]Status: DisposedITAT Bangalore30 Jun 2016AY 2008-09

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri S. Venkatesan, CAFor Respondent: Shri Sunil Kumar Agarwala, JCIT
Section 144

…d by him on the following judicial pronouncements; 1. Abdul Sattar M .Mokasi Vs CIT 174 ITR 368 2. CIT Vs K.Adinarayana Murthy 65 ITR 607 3. Meera & Co., Vs CIT 2124 ITR 635 4. Faqir Cahnd Gulati 10 Supreme Court Cases 345 5. Lindeag Linde Engg. Dvn. Vs DDIT 365 ITR 1 Thereafter, he submitted that copy of these five judgments are available along with the list of citations relied upon by the ld. AR of the assessee. He also submitted that incase, the assessee succeeds on this aspect of the matter then, nothing more remains to be decided because in that situation, the assessment itself has to be quashed but if the…

DDIT (It) 4(2), Mumbai vs. Abu Dhabi Ship Bldg Pjsc, Mumbai

In the result, Department’s appeal stands allowed

ITA 5418/MUM/2013[2013-14]Status: DisposedITAT Mumbai08 Jun 2016AY 2013-14

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

For Appellant: Shri Yogesh TharFor Respondent: Dr. Dipak Ripote
Section 195(2)Section 246A(1)Section 9(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA no.5418/Mum./2013 (Assessment Year : 2013–14) Dy. Commissioner of Income Tax (International Taxation)–4(2) ……………. Appellant Room no.11, Scindia House Ballard Pier, Mumbai 400 038 v/s M/s. Abu Dhabi Ship Building PJSC C/o Approach Properties Pvt. Ltd. Room no.53, 5th Floor, Free Press ……………. Respondent Journal Road, Nariman Point Mumbai 400 021 PAN – AAKCA9432F Revenue by : Dr. Dipak Ripote Assessee by : Shri Yogesh Thar Date of Hearing – 11.03.2016 Date of Order – 08.0…

Red Chillies Entertainment P.Ltd, Mumbai vs. ACIT Cen Cir 29, Mumbai

In the result, assessee’s appeal for A

ITA 5271/MUM/2013[2010-11]Status: DisposedITAT Mumbai31 May 2016AY 2010-11

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

For Appellant: Shri Hiru RaiFor Respondent: Shri B.S. Bist

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA no.5271/Mum./2013 (Assessment Year : 2010–11) Red Chillies Entertainment Pvt. Ltd. Plot no.612, Junction of Ram Krishna Mission Road & 15th Cross Road ……………. Appellant Santacruz (W), Mumbai 400 054 PAN – AACCR2518P v/s Asstt. Commissioner of Income Tax Central Circle–29, Aayakar Bhawan ……………. Respondent 101, M.K. Road, Mumbai 400 020 ITA no.1577/Mum./2013 (Assessment Year : 2009–10) Red Chillies Entertainment Pvt. Ltd. Plot no.612, Junction of Ram Krishna Mission Road &…

Commissioner of Income Tax Xiii vs. Oriental Structural Engineers Pvt. & Gammon India Ltd. Jv

ITA/445/2014HC Delhi10 Feb 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 143(1)

…uding those of the Supreme Court when a "person" is said to exist as an association of persons. In that decision, i.e. Linde AG, Linde Engineering Division and Anr. v. Deputy Director of Income Tax W.P. (C) No. 3914/2012 & CM No. 8187/2012, reported in [2014] 365 ITR 1 (Delhi), first, the Court considered the definition of Association of Persons (Section 2 (31)) and then analyzed it in the following terms: “(31) ‘person’ includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authori…