Motorola Inc. v. DCIT

44 SOT 368Income Tax Appellate Tribunal1911#3528 most cited

What is Motorola Inc. v. DCIT authority for?

The initiation of penalty proceedings under section 271(1)(c) is consequential and mandatory following a higher court decision, and such penalty proceedings are dismissed if the primary assessment or appeal is dismissed.

34

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

Motorola Inc v DCIT · penalty proceedings · section 271(1)(c) · consequential · mandatory · ITAT Delhi Special Bench · CIT v Anjum M.H. Ghaswala

Also reported as

96 TTJ 1

Sections most often in play

Section 234ASection 234BSection 139Section 142(1)Section 144Section 147Section 148Section 234C

Issues it is cited on

installation pedependent agent peadvance pricing agreementagency pefunctional analysisfixed place peservice pefar analysistransactional net margin methodmost appropriate methodtax treatypermanent establishment

Judgments citing Motorola Inc. v. DCIT

The DDIT(It)-1(1), Mumbai vs. M/S. Asia Today Ltd (Formerly Winter Heath Ltd), Mumbai

In the result, all the four appeals are dismissed as infructuous and all the four cross objections are allowed

ITA 5042/MUM/2008[2005-2006]Status: HeardITAT Mumbai29 Jan 2021AY 2005-2006

…CO Nos. 124-125/Mum/2008, 63 and 64/Mum/.2009 ITA No. 1878, 1879/Mum/2008 and 5042-43/Mum/08 Assessment year: 2002-03, 2004-05, 2005-06 Page 1 of 21 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI 'I' BENCH, MUMBAI [Coram: Pramod Kumar (Vice President), and C N Prasad (Judicial Member)] ITA No. 1878, 1879/Mum/2008 Assessment year: 2002-03, 2004-05 Additional Director of Income Tax International Taxation 1(1), Mumbai ……………….………Appellant Vs. Asia Today Limited ……………………Respondent C/o MGB & Co, Jolly Bhawan No 2, 1st floor 7, New Marine Lines, Mumbai 400 020 [PAN: AABCA0249F] CO Nos. 124-125/Mum/2008 Arising out of ITA…

The ADIT(It)-1(1), Mumbai vs. M/S. Asia Today Ltd, Mumbai

In the result, all the four appeals are dismissed as infructuous and all the four cross objections are allowed

ITA 1879/MUM/2008[2004-2005]Status: HeardITAT Mumbai29 Jan 2021AY 2004-2005

…CO Nos. 124-125/Mum/2008, 63 and 64/Mum/.2009 ITA No. 1878, 1879/Mum/2008 and 5042-43/Mum/08 Assessment year: 2002-03, 2004-05, 2005-06 Page 1 of 21 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI 'I' BENCH, MUMBAI [Coram: Pramod Kumar (Vice President), and C N Prasad (Judicial Member)] ITA No. 1878, 1879/Mum/2008 Assessment year: 2002-03, 2004-05 Additional Director of Income Tax International Taxation 1(1), Mumbai ……………….………Appellant Vs. Asia Today Limited ……………………Respondent C/o MGB & Co, Jolly Bhawan No 2, 1st floor 7, New Marine Lines, Mumbai 400 020 [PAN: AABCA0249F] CO Nos. 124-125/Mum/2008 Arising out of ITA…

The ADIT(It)-1(1), Mumbai vs. M/S. Asia Today Ltd, Mumbai

In the result, all the four appeals are dismissed as infructuous and all the four cross objections are allowed

ITA 1878/MUM/2008[2002-2003]Status: HeardITAT Mumbai29 Jan 2021AY 2002-2003

…CO Nos. 124-125/Mum/2008, 63 and 64/Mum/.2009 ITA No. 1878, 1879/Mum/2008 and 5042-43/Mum/08 Assessment year: 2002-03, 2004-05, 2005-06 Page 1 of 21 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI 'I' BENCH, MUMBAI [Coram: Pramod Kumar (Vice President), and C N Prasad (Judicial Member)] ITA No. 1878, 1879/Mum/2008 Assessment year: 2002-03, 2004-05 Additional Director of Income Tax International Taxation 1(1), Mumbai ……………….………Appellant Vs. Asia Today Limited ……………………Respondent C/o MGB & Co, Jolly Bhawan No 2, 1st floor 7, New Marine Lines, Mumbai 400 020 [PAN: AABCA0249F] CO Nos. 124-125/Mum/2008 Arising out of ITA…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

ITA 3149/DEL/2009[2001-02]Status: DisposedITAT Delhi30 Sept 2019AY 2001-02

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri G.K. Dhall, CIT- DR [Intll.]
Section 9(1)(i)

…of execution of contracts exhibited elsewhere. 23. Moreover, the only allegation of the Assessing Officer is that the LO has assisted in the negotiation and signing of the contracts. We find that the Special Bench of the Tribunal in the case of Motorola Inc.96 TTJ 1 itself had held that an LO does not tantamount to existence of a PE in terms of Article 5 of the DTAA. 24. The ld. DR has placed strong reliance on the decision of the Tribunal in the case of Hitachi Hitech Technologies ITA Nos. 2683 to 2688/DEL/2015 and pointed out that the Tribunal has held that the existence of the LO constituted a PE of Hitach…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

ITA 3150/DEL/2009[2002-03]Status: DisposedITAT Delhi30 Sept 2019AY 2002-03

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri G.K. Dhall, CIT- DR [Intll.]
Section 9(1)(i)

…of execution of contracts exhibited elsewhere. 23. Moreover, the only allegation of the Assessing Officer is that the LO has assisted in the negotiation and signing of the contracts. We find that the Special Bench of the Tribunal in the case of Motorola Inc.96 TTJ 1 itself had held that an LO does not tantamount to existence of a PE in terms of Article 5 of the DTAA. 24. The ld. DR has placed strong reliance on the decision of the Tribunal in the case of Hitachi Hitech Technologies ITA Nos. 2683 to 2688/DEL/2015 and pointed out that the Tribunal has held that the existence of the LO constituted a PE of Hitach…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

ITA 3148/DEL/2009[2000-01]Status: DisposedITAT Delhi30 Sept 2019AY 2000-01

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri G.K. Dhall, CIT- DR [Intll.]
Section 9(1)(i)

…of execution of contracts exhibited elsewhere. 23. Moreover, the only allegation of the Assessing Officer is that the LO has assisted in the negotiation and signing of the contracts. We find that the Special Bench of the Tribunal in the case of Motorola Inc.96 TTJ 1 itself had held that an LO does not tantamount to existence of a PE in terms of Article 5 of the DTAA. 24. The ld. DR has placed strong reliance on the decision of the Tribunal in the case of Hitachi Hitech Technologies ITA Nos. 2683 to 2688/DEL/2015 and pointed out that the Tribunal has held that the existence of the LO constituted a PE of Hitach…

M/S. Siemens Mobile Communication Spa, New Delhi vs. DDIT, New Delhi

In the result, all the appeals of the assessee, viz

ITA 3147/DEL/2009[1999-00]Status: DisposedITAT Delhi30 Sept 2019AY 1999-00

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri G.K. Dhall, CIT- DR [Intll.]
Section 9(1)(i)

…of execution of contracts exhibited elsewhere. 23. Moreover, the only allegation of the Assessing Officer is that the LO has assisted in the negotiation and signing of the contracts. We find that the Special Bench of the Tribunal in the case of Motorola Inc.96 TTJ 1 itself had held that an LO does not tantamount to existence of a PE in terms of Article 5 of the DTAA. 24. The ld. DR has placed strong reliance on the decision of the Tribunal in the case of Hitachi Hitech Technologies ITA Nos. 2683 to 2688/DEL/2015 and pointed out that the Tribunal has held that the existence of the LO constituted a PE of Hitach…

Siemens Communication Spa vs. DDIT, Circle-2(2)

In the result, all the appeals of the assessee, viz

ITA 2810/DEL/2003[1998-1999]Status: DisposedITAT Delhi30 Sept 2019AY 1998-1999

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri G.K. Dhall, CIT- DR [Intll.]
Section 9(1)(i)

…of execution of contracts exhibited elsewhere. 23. Moreover, the only allegation of the Assessing Officer is that the LO has assisted in the negotiation and signing of the contracts. We find that the Special Bench of the Tribunal in the case of Motorola Inc.96 TTJ 1 itself had held that an LO does not tantamount to existence of a PE in terms of Article 5 of the DTAA. 24. The ld. DR has placed strong reliance on the decision of the Tribunal in the case of Hitachi Hitech Technologies ITA Nos. 2683 to 2688/DEL/2015 and pointed out that the Tribunal has held that the existence of the LO constituted a PE of Hitach…

Amadeus Global Travel Distribution Sa, Spain vs. ADIT, New Delhi

The appeal of the assessee is allowed with above direction

ITA 1494/DEL/2011[2006-07]Status: DisposedITAT Delhi18 Jul 2019AY 2006-07

Bench: Shri Kuldip Singh & Shri Prashant Maharishiamadeus Global Travel Vs. Adit, Distribution Sa Circle-1(1), (Now Known As Amadeus It International Taxation, Group Sa), New Delhi Salvador De Madariaga, E- 28027, Madrid, Spain Pan: Aafca9629P (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 80HSection 9

…source or and therefore, the applicant was not liable to pay any advance tax, even if the payer had not actually deducted tax at source:  DIT v. Maersk Co. Ltd.: 334 ITR 79 (Uttrakhand HC)(FB)  DIT Vs. Jacabs Civil Incorporated: 330 ITR 578  Motorola Inc. (96 TTJ 1) (Del.)(SB)  Sedco Forex International v. DCIT, Delhi (72 ITD 415)/186 CTR 144 (Del.) Amadeus Global Travel Distribution SA Vs. ADIT  Asia Satellite Ltd. (ITA No.166/Delhi/2001)  Rheinbraun Engineering & Wasser GmbH (1915/Bom/96) In view of the aforesaid, it is respectfully submitted, that no interest under section 234B of the Act was leviable f…

Ciena India Pvt. Ltd., Gurgaon vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 984/DEL/2011[2008-09]Status: DisposedITAT Delhi29 Jun 2018AY 2008-09

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Reetika Garg (CA) &For Respondent: Sh. Surender Pal (Sr. DR)
Section 195Section 201Section 201(1)

…e and will generate business income only. As mentioned above, in the absence of PE of the non-resident sellers in India business income will not be subject to tax in India. Case Law Relevant para and page of Case Law Compilation Motorala Inc. vs DCIT [2005] 96 TTJ 1 Page no. 86- (ITAT Del) para no. 172,73,174 Where the payment is not for any copyright but for copyrighted article itself, the payment cannot be construed as royalty. Furthermore, where the software is supplied along with te hardware, it was not open for the tax authorities to split the same and consider a part of the payment for software to be trea…

Ciena India Pvt. Ltd., Gurgaon vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 959/DEL/2011[2007-08 (F.Y. 2006-07)]Status: DisposedITAT Delhi29 Jun 2018

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Ms. Reetika Garg (CA) &For Respondent: Sh. Surender Pal (Sr. DR)
Section 195Section 201Section 201(1)

…e and will generate business income only. As mentioned above, in the absence of PE of the non-resident sellers in India business income will not be subject to tax in India. Case Law Relevant para and page of Case Law Compilation Motorala Inc. vs DCIT [2005] 96 TTJ 1 Page no. 86- (ITAT Del) para no. 172,73,174 Where the payment is not for any copyright but for copyrighted article itself, the payment cannot be construed as royalty. Furthermore, where the software is supplied along with te hardware, it was not open for the tax authorities to split the same and consider a part of the payment for software to be trea…

Rohda Specialtiy Chemicals India Ltd, Mumbai vs. Addl CIT Cir 6(1), Mumbai

Appeal stands dismissed for want of substantial question of law

ITA 830/MUM/2014[2009-10]Status: DisposedITAT Mumbai24 Apr 2017AY 2009-10

Bench: Shri Shamim Yahya & Shri C.N. Prasadita No. 830/Mum/2014 : (A.Y : 2009-10) M/S Rhodia Specialty Chemicals Vs. Addl. Cit – Circle 6(1) India Ltd. (Formerly Known As Room No.511, Aayakar Bhawan M/S Albright & Wilson Chemicals Mk Road India Ltd.), Phoenix House, A Wing New Marine Lines 4Th Floor, 462 Senapati Bapat Marg Mumbai – 400 020 Lower Parel (West) Mumbai – 400 013 Pan : Aaaca3841L Ita No. 622/Mum/2014 : (A.Y : 2009-10) Dcit -7(2) Vs. M/S Rhodia Specialty Chemicals Room No.624, Mk Road India Ltd. (Formerly Known As Mumbai – 400 020 M/S Albright & Wilson Chemicals India Ltd.), Phoenix House, A Wing 4Th Floor, 462 Senapati Bapat Marg Lower Parel (West) Mumbai – 400 013 (अपीलार्थी / Appellant) (प्रत्यर्थी / Respondent)

For Appellant: Shri Manish V ShahFor Respondent: Shri Rajguru M
Section 143(3)

…ontained therein. In support of the above contention, assessee placed reliance on following decisions. 1. Dy CIT v ITC Ltd.(82 1TD 239) (Kol). 2. Mckinsey & Co.,Inc.(Phillippines) v Asstt.Dirèctor of IT(284 ITR 227)(Mum) (AT) 3. Motoroloa Inc. v Dy.CIT(2005)(96 TTJ 1)(Del)(SB). 4. DIT vs Guy Carpenter & Co. Ltd (346 ITR 504) 5. CIT vs De Beers India Minerals Pvt. Ltd (21 Taxmen.com 214) 6. Bharat Petroleum Corpn Ltd. Vs Joint Director of Income Tax (14 S0T 307) Thus assessee pleads that the services rendered by RAP of IT, Admn and Security support services cannot be covered within the ambit of Fees for technica…

DCIT 7(2), Mumbai vs. Albright & Wilson Chemicals India Ltd, Mumbai

Appeal stands dismissed for want of substantial question of law

ITA 622/MUM/2014[2009-10]Status: DisposedITAT Mumbai24 Apr 2017AY 2009-10

Bench: Shri Shamim Yahya & Shri C.N. Prasadita No. 830/Mum/2014 : (A.Y : 2009-10) M/S Rhodia Specialty Chemicals Vs. Addl. Cit – Circle 6(1) India Ltd. (Formerly Known As Room No.511, Aayakar Bhawan M/S Albright & Wilson Chemicals Mk Road India Ltd.), Phoenix House, A Wing New Marine Lines 4Th Floor, 462 Senapati Bapat Marg Mumbai – 400 020 Lower Parel (West) Mumbai – 400 013 Pan : Aaaca3841L Ita No. 622/Mum/2014 : (A.Y : 2009-10) Dcit -7(2) Vs. M/S Rhodia Specialty Chemicals Room No.624, Mk Road India Ltd. (Formerly Known As Mumbai – 400 020 M/S Albright & Wilson Chemicals India Ltd.), Phoenix House, A Wing 4Th Floor, 462 Senapati Bapat Marg Lower Parel (West) Mumbai – 400 013 (अपीलार्थी / Appellant) (प्रत्यर्थी / Respondent)

For Appellant: Shri Manish V ShahFor Respondent: Shri Rajguru M
Section 143(3)

…ontained therein. In support of the above contention, assessee placed reliance on following decisions. 1. Dy CIT v ITC Ltd.(82 1TD 239) (Kol). 2. Mckinsey & Co.,Inc.(Phillippines) v Asstt.Dirèctor of IT(284 ITR 227)(Mum) (AT) 3. Motoroloa Inc. v Dy.CIT(2005)(96 TTJ 1)(Del)(SB). 4. DIT vs Guy Carpenter & Co. Ltd (346 ITR 504) 5. CIT vs De Beers India Minerals Pvt. Ltd (21 Taxmen.com 214) 6. Bharat Petroleum Corpn Ltd. Vs Joint Director of Income Tax (14 S0T 307) Thus assessee pleads that the services rendered by RAP of IT, Admn and Security support services cannot be covered within the ambit of Fees for technica…

Allcatel Usa Sourcing Lp ( Included in Alcatel-Lucent Usa Inc.), Mumbai vs. Addl DIT (It) RG 1, Mumbai

In the result, all the appeals filed by the assessees are allowed for statistical purpose

ITA 8601/MUM/2010[2006-07]Status: DisposedITAT Mumbai05 Aug 2016AY 2006-07

Bench: Shri B.R. Baskaran & Shri C.N. Prasadआयकर अपील सं /I.Ta No.8601 & 7533/Mum/2010 ("नधा"रण वष" / Assessment Year:2006-07 & 2007-08 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Lp (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aalfa9998A आयकर अपील सं /I.Ta No.7534 & 7535/Mum/2011 ("नधा"रण वष" / Assessment Year:2007-08 & 2008-09 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Inc (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aagca4535R .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri P.J. Pardiwalla अपीलाथ" ओर से/ Appellant By: Shri Madhur Agarwal Shri K.K. Ved ""यथ" क" ओर से/Respondent By: Shri Jasbir Chauhan

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

…co Forex International Drill Inc & Ors Vs CIT & Anr (2005) 199 CTR (SC) 320 2) DIT Vs MGCV Network Asia LLC (2009) 313 ITR 187 (Bom) 46 M/s. Alcatel USA Sourcing LP 3) The DDIT Vs SET Satellite (Singapore) Pte Ltd., 106 ITD 175 (Mum) 4) Motorola Inc Vs DCIT 96 TTJ 1 (Del) 5) CIT Vs Ranoli Investment Pvt. Ltd and Other 235 ITR 433 (Guj) 6) CIT Vs Madras Fertilisers Ltd (`149 ITR 703 (Mad) 16.4. The DRP observing that provisions of Sec. 234B is compensatory in nature and is leviable on the amount of assessed tax therefore the contentions of the assessee was rejected. 16.5. On hearing both sides, we find force i…