Poompuhar Shipping Corporation Ltd. v. ITO

SUNFLOWER AIRCRAFT LEASING LIMITED,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 4(2)(2) INTERNATIONAL TAX, MUMBAI

In the result, the appeal of the assessee stands allowed

…lled entirely from Ireland; and that, under both the leases and Indian aviation law, operational control vested exclusively in IndiGo. The LD.DRP however was unconvinced and drawing heavily on the reasoning in Poompuhar Shipping Corporation Ltd. v. ITO [2014] 360 ITR 257 (Mad), and applying the disposal test articulated by the Supreme Court in Formula One World Championship Ltd. v. CIT (2017) 394 ITR 80 (SC), it held that:\n•\nThe ownership of high-value, income-earning assets (aircraft) continuously located in India for commercial exploitation constituted a tangible presence in the source State.\n•\nThe contract…

NAN LIAN SHIP MANAGEMENT LLC,MUMBAI vs. JCIT (OSD)(INT TAX)-3(3)(1), MUMBAI

In the result, the appeal filed by the assessee stands allowed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blenan Lian Ship Management Llc V. Jcit (Osd) (Intl. Tax) – 3(3)(1) 303, The Atrium Center Room No. 1630, 16Th Floor Khalid Bin Al Walled Road Air India Building Nariman Point, Mumbai – 400 021 Bur Dubai Po Box No. 82289 Dubai, Uae Nan Lian Ship Management Llc C/O. Nishit M. Gandhi Chambers 2 & 3, Ground Floor Cosmos Trade Place, Khatau Building Alkesh Dinesh Mody Marg Opp. Bombay Stock Exchange Fort, Mumbai - 400001 Pan: Aagcn0478E (Appellant) (Respondent)

…s furnished and which should have been considered before arriving at its conclusion; (iii) The Ld. DRP as well as the Ld. AO erred in relying on the judgement of the Hon'ble Madras High Court in the case of Poompuhar Shipping Corporation Ltd. v/s ITO - (2014) 360 ITR 257 (Madras) without appreciating that the same is not applicable in the facts of the present case and in any case the same does not even consider the applicability of section 44B / 172 of the Act which is specifically incorporated to deal with Shipping Business of Non- Residents; (iv) The issue now stands concluded in favour of the Assessee by the J…

SMIT SINGAPORE PTE LTD,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX(INT TAXATION)-4(2)(1), MUMBAI

In the result, the appeal by the assessee is partly allowed for statistical purposes

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

…in order to support their view that the consideration received by the assessee was liable to be assessed as 'royalty' had relied on the judgment of the Hon'ble High Court of Madras in the case of Poompuhar Shipping Corporation Vs. ITO (I.T)-II Chennai (2014) 360 ITR 257 (Mad). In the said case, the Hon'ble High Court had held that by giving possession to the hirer who has control and custody of the vessel the condition of 'use' or 'right to use' is satisfied. In other words, the Hon'ble High Court was of the view that as long as the hirer is given the right to use (with a right to put the ship for a beneficial u…

DCIT (IT)-4(1)(1), MUMBAI vs. M/S RELIANCE JIO INFOCOMM LTD, MUMBAI

In the result, the appeal of the Revenue stands dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.2866/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2019-20) Dcit(It)-4(1)(1) बिधम/ M/S. Reliance Jio Room No. 1712, 17Th Floor, Infocomm Ltd Vs. Air India Building, Nariman 3Rd Floor, Maker Point, Mumbai-400021. Chamber-Iv, 222, Nariman Point, Mumbai- 400021. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabci6363G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Nimesh Vora/Ms. Moksha Moksha Mehta Revenue By: None सुनवाई की तारीख / Date Of Hearing: 24/02/2023 घोषणा की तारीख /Date Of Pronouncement: 26/04/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue Against The Order Of The Ld. Cit(A)/Nfac, Mumbai Dated 08.09.2022 For The Ay 2019-20. 2. The Grounds Of Appeal Of The Revenue Are As Under: - A. “Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Holding That Tax Was Not Required To Be Deducted At Source On The Payment Made By The Assessee To Reliance Jio Infocomm Uk (Rjiuk) For Availing Bandwidth Services As It Did Not Amount To Income Of The Payee By Way Of Royalty U/S 9(1)(Vi) Of The It Act, 1961 Read With Article 13 Of The India-Uk Dtaa. B. “Whether On The Facts & Circumstances Of The Case & In Law, The Ld, Cit(A) Has Erred In Holding That Tax Was Not Required To Be Deducted At Source On The Payment Made By The Assessee To Reliance Jio Infocomm Uk (Rjiuk) For Availing Bandwidth Services As It Did Not Amount To Income Of The Payee

…20 Reliance Jio Infocomm Ltd. treaty in hands of payee without appreciating that the provisions of section 9(1)(vi) are pari-materia with the Royalty itxa-1395- 2016.odt provisions under the DTAA as also held by Madras High Court in case of Poompuhar Shipping 360 ITR 257 and Verizon Communication Singapore Pte ITR 575 (Mad.)? (c) Whether on facts and circumstances of the case and in law, the Tribunal erred in relying upon the decision of Hon'ble Delhi High Court in case of payee i.e. New Skies Satellites NV, Netherlands to hold that the amount was not taxable under the treaty in hands of payee, without appreciati…

NAN LION SHIP MANAGEMENT LLC,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) -3(3)(1), MUMBAI

In the result, the appeal filed by the assessee stands allowed

Bench: Shri Amit Shukla, Jm & Shri Gagan Goyal, Am आयकरअपीलसं./ I.T.A. No. 1857/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2019-20) Acit (Int. Tax) – 3(3)(1), Nan Lian Ship Management 1630, 16Th Floor, Air India Llc Building Nariman Point, C/O- Chamber 2 & 3, Cosmos बिधम/ Mumbai-400 021 Trade Place, Ground Floor, Vs. Khatu Building, Opp-Bse, Fort, Mumbai-400 001 स्थायीलेखासं./जीआइआरसं./ Pan No. Aagcn0478E (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Shri Nishit Gandhi /Dhanlaxmi Iyer, Ld. Ars प्रत्यथीकीओरसे/Respondent By : Shri Soumendu Kumar Das, Ld. Dr सुनवाईकीतारीख/ : 03.11.2022 Date Of Hearing घोषणाकीतारीख / : 30.12.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeal Has Been Filed By The Assessee Against The Final Assessment Order Dated 27.05.2022, Passed By Ld. Ao U/S 2

…to another within India territory albeit for leasing the vessel. Therefore, it cannot be taxed u/s 44B of the Act. Thus, on these facts he strongly relied upon the judgment of Hon’ble Madras High Court in the case of M/s Poompuhar Shipping Corp. Ltd. vs. ITO (360 ITR 257) and held that the amount received by the assessee is liable to tax under the head ‘Royalty’. 5. Ld. DRP had confirmed the draft order of the AO after observing as under:- 4 I.T.A. No. 1857/Mum/2022 Nan Lian Ship Management LLC 5. We have perused the draft assessment order. We have also considered the written and oral submissions of the assesse…

SMIT SINGAPOARE PTE LTD,MUMBAI vs. DCIT (IT) CIR 4(2)(1), MUMBAI

In the result the appeal filed by the assessee is partly allowed for statistical purpose

Bench: Shri Shamim Yahya & Shri Pavan Kumar Gadalem/S. Smit Singapore Vs. Dcit (It) – 4(2)(1) 17Th Floor, Room No. Pte Ltd., Srbc & Associates, Llp 1708, Air India 14Th Floor, The Ruby, Building , Nariman 29 Senapati Bapat Marg Point, Mumbai Dadar (W) – 400028. È"ȡ"Ȣ""Ȯ"ȡ" Ȳ"""Ȣ] ^ ] "" Ȳ""Pan/Gir No. : Aaocs1031L Appellant/Respondent .. Respondent/Appellant

…in order to support their view that the consideration received by the assessee was liable to be assessed as Hon’ble High ‘royalty’ had relied on the judgment of the Court of Madras Poompuhar Shipping in the case of Corporation Vs. ITO (I.T)-II Chennai (2014) 360 ITR 257 (Mad). In the said case, the Hon’ble High Court had held that by giving possession to the hirer who has control and custody of the vessel the condition of ‘use’ or ‘right to use’ is satisfied. In other words, the Hon’ble High Court was of the view that as long as the hirer is given the right to use (with a right to put the ship for a beneficial u…

SMIT SINGAPOARE PTE LTD,MUMBAI vs. DCIT (IT) CIR 4(1)(2), MUMBAI

The appeal of the assessee is allowed in terms of our aforesaid observations

Bench: Shri Pramod Kumar & Shri Ravish Soodsmit Singapore Pte Ltd. Deputy Commissioner Srbc & Associates, Of Income-Tax (I.T.)-4(2)(1), 14Th Floor, The Ruby, 17Th Floor, Room No. 1708, Vs. 29 Senapati Bapat Marg, Air India Building, Nariman Point, Dadar (West), Mumbai - 400021 Mumbai- 400028 Pan – Aaocs1031L (Appellant) (Respondent) Appellant By: Shri Madhur Agarwal, A.R Respondent By: Shri Sanjay Singh & Shri T.S. Khaisa, Cit, D.Rs Date Of Hearing: 06.11.2020 Date Of Pronouncement: 09.11.2020

…in order to support their view that the consideration received by the assessee was liable to be assessed as ‗royalty‘ had relied on the judgment of the Hon’ble High Court of Madras in the case of Poompuhar Shipping Corporation Vs. ITO (I.T)-II Chennai (2014) 360 ITR 257 (Mad). In the said case, the Hon‘ble High Court had held that by giving possession to the hirer who has control and custody of the vessel the condition of ‗use‘ or ‗right to use‘ is satisfied. In other words, the Hon‘ble High Court was of the view that as long as the hirer is given the right to use (with a right to put the ship for a beneficial u…

MARITIME VANGUARD PTE LTD,MUMBAI vs. ACIT (IT)-3(2)(1), MUMBAI

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2015-16 Maritime Vanguard Pte Ltd. Assistant Commissioner Of C/O Srbc & Associates, Llp, Vs. Income Tax (International 14Th Floor, The Ruby, 29 Taxation) Circle-3(2)(1), 16Th Senapatibapat Marg, Dadar, Floor, Room No. 1607, Air (West), Mumbai-400028. India Building Nariman Point, Mumbai-400021. Pan No. Aajcm3609F Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I” MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2015-16 Maritime Vanguard Pte Ltd. Assistant Commissioner of C/O SRBC & Associates, LLP, Vs. Income Tax (International 14th floor, The Ruby, 29 Taxation) Circle-3(2)(1), 16th SenapatiBapat Marg, Dadar, Floor, Room No. 1607, Air (West), Mumbai-400028. India Building Nariman Point, Mumbai-400021. PAN No. AAJCM3609F Appellant Respondent Assessee by : Mr. M.P. Lohia, AR Revenue by : Ms. Abha Kala Chanda, CIT-DR & Ms. Kavita Kaushik, DR Last Date of Hea…