PCIT v. Motif India Infotech (P) Ltd.

409 ITR 178High Court2018#4358 most cited

What is PCIT v. Motif India Infotech (P) Ltd. authority for?

Payments made for services that are utilized for earning income from outside India, where the customers are foreign-based companies, are not taxable in India as Fees for Technical Services, particularly when excluded by Section 9(1)(vii)(b) of the Income-tax Act.

27

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2021 to 2025.

Also referred to as

PCIT v. Motif India Infotech · section 9(1)(vii)(b) · Fees for Technical Services · FTS · income earned outside India · source of income · international taxation · Gujarat High Court · taxable in India · non-resident receipts

Sections most often in play

Section 9(1)(vii)Section 10AASection 147Section 148Section 1961Section 234ASection 234BSection 9(1)(vii)(b)
Read the full judgment

Issues it is cited on

section 5(2)(b)section 9(1)(vii)(b)section 9(2)section 144c(10)make available clausesection 2(11)section 195(1)sanction under section 151tax residency certificatesection 5(2)retrospective amendmentfees for included services

Judgments citing PCIT v. Motif India Infotech (P) Ltd.

Same Deutz Fahr Italia Spa, Italy vs. Assistant Commissioner, Chennai

In the result the appeal of the assessee is allowed

ITA 937/CHNY/2024[AY 2016-17]Status: DisposedITAT Chennai30 Jan 2025

Bench: Shri Aby T Varkey, Hon’Ble & Shri S.R.Raghunatha, Hon’Ble

For Appellant: Shri. S.P. Chidambaram, AdvocateFor Respondent: Ms. R. Anita, Addl. CIT
Section 147Section 148Section 250o

…ign clients and as such the source of such service income is also outside India. In fact, in the decision of Regen Power Tech at Para 12 it is held that the decision in the case of Pr.CIT v. Motif India Infotech :-35-: ITA. No:937/Chny/2024 (P.) Ltd. [2018] 409 ITR 178 (Guj). is distinguishable on facts and it was held as under: "the payments were for technical services provided by a non-resident for providing services to be utilized for serving the assessee's foreign clients and thus, the Fees for Technical Services was paid by the assessee for the purpose of making or earning any income from any source outsid…

Hcl Technologies Norway As, Delhi vs. Deputy Commissioner of Income Tax, Delhi

In the result, similar grounds of appeal, in all the captioned

ITA 2300/DEL/2024[2015-16]Status: DisposedITAT Delhi30 Oct 2024AY 2015-16

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vijay B. Vasanta, CIT-DR
Section 144C(13)Section 147Section 148Section 148ASection 149(1)(b)Section 153(2)

…submitted that the Hon'ble Tribunal has examined the issue in entirety: after referring to the statutory provisions, facts emanating from record and binding precedent of the Hon'ble Gujarat High Court in the case of CIT vs Motif India Infotech (P) Ltd: [2018] 409 ITR 178 (Guj), categorical findings have been rendered regarding payments made by HCLT to the Appellants being excluded from the purview of Fees For Technical Services ("FTS") in terms of exclusion contained in section 9(1)(vii)(b) of the Act. [Refer paragraph No.24 to 31@page no.32-36 of the case laws PB] Further, the Hon'ble Tribunal also relied upon…

Hcl Australia Services Pty Limited, Delhi vs. Deputy Commissioner of Income Tax, Delhi

In the result, similar grounds of appeal, in all the captioned

ITA 2299/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Oct 2024AY 2016-17

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vijay B. Vasanta, CIT-DR
Section 144C(13)Section 147Section 148Section 148ASection 149(1)(b)Section 153(2)

…submitted that the Hon'ble Tribunal has examined the issue in entirety: after referring to the statutory provisions, facts emanating from record and binding precedent of the Hon'ble Gujarat High Court in the case of CIT vs Motif India Infotech (P) Ltd: [2018] 409 ITR 178 (Guj), categorical findings have been rendered regarding payments made by HCLT to the Appellants being excluded from the purview of Fees For Technical Services ("FTS") in terms of exclusion contained in section 9(1)(vii)(b) of the Act. [Refer paragraph No.24 to 31@page no.32-36 of the case laws PB] Further, the Hon'ble Tribunal also relied upon…

Hcl Singapore Pte. Ltd (Successor to Axon Solutions Singapore Pte Limited), Delhi vs. Deputy Commissioner of Income Tax, Delhi

In the result, similar grounds of appeal, in all the captioned

ITA 2298/DEL/2024[2017-18]Status: DisposedITAT Delhi30 Oct 2024AY 2017-18

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vijay B. Vasanta, CIT-DR
Section 144C(13)Section 147Section 148Section 148ASection 149(1)(b)Section 153(2)

…submitted that the Hon'ble Tribunal has examined the issue in entirety: after referring to the statutory provisions, facts emanating from record and binding precedent of the Hon'ble Gujarat High Court in the case of CIT vs Motif India Infotech (P) Ltd: [2018] 409 ITR 178 (Guj), categorical findings have been rendered regarding payments made by HCLT to the Appellants being excluded from the purview of Fees For Technical Services ("FTS") in terms of exclusion contained in section 9(1)(vii)(b) of the Act. [Refer paragraph No.24 to 31@page no.32-36 of the case laws PB] Further, the Hon'ble Tribunal also relied upon…

Hcl Technologies Italy S.P.A, Italy vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 596/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Belgium Bvba, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 595/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Mexico S. De R L, Mexico vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 594/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Hongkong Sar Limited, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 593/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies (Proprietary) Limited, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 567/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Bv, Netherlands vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 565/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Australia Services Pty Ltd, Australia vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 564/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Maylasia Sdn Bhd, Malaysia vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 563/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl (Brazil) Technologies Da Informacao Eireli, New Delhi vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 562/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Canada Inc., Canada vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 561/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Poland Sp Zoo, Poland vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 560/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Germany Gmbh, Germany vs. ACIT Circle -2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 559/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies France, New Delhi vs. ACIT, Circle-Int. Tax 2(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 544/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Philippines Inc., New Delhi vs. ACIT, Circle-Int. Tax 2(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 543/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Singapore Pte Ltd, New Delhi vs. ACIT Circle International Taxation 2(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 537/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

Hcl Technologies Denmark Aps, New Delhi vs. ACIT Circle- 2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 528/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

…thhold tax on the payments made. Accordingly, we delete the disallowance made under section 40(a)(i) of the Act.‖ 25.1. We find that similar view was also taken by the Hon‘ble Gujarat High Court in the case of PCIT vs Motif India Infotech (P) Ltd reported in 409 ITR 178 (Guj). In that case, that assessee was engaged in the business of software development and was providing software related services to its overseas clients. It hired services of a Philippines company for rendering human resource and infrastructure services to its foreign based client. The Hon‘ble Gujarat High Court held that FTS paid by that asses…

PCIT v. Motif India Infotech (P) Ltd. (409 ITR 178) — Cited in 27 Judgments | BharatTax