Set Satellite Pte Ltd. v. CIT

307 ITR 205High Court2008#1179 most cited

What is Set Satellite Pte Ltd. v. CIT authority for?

If a Dependent Agency Permanent Establishment (DAPE) is remunerated at arm's length based on transfer pricing principles, no further profits can be attributed to the foreign enterprise. The principles of profit attribution under DTAA Article 7 are pari-materia to Section 9(1)(i) of the Income Tax Act.

96

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2025.

Also referred to as

Set Satellite Pte Ltd v CIT · 307 ITR 205 · Section 9(1)(i) · DTAA Article 7 · Permanent Establishment (PE) · Dependent Agency PE (DAPE) · Profit attribution · Arm's length principle · Transfer pricing · No further profits · Business connection

Sections most often in play

Section 133(6)Section 143(3)Section 144C(13)Section 144C(5)Section 234ASection 234BSection 270ASection 5(4)

Issues it is cited on

installation peagency peservice pedependent agent pefixed place pefunctional analysissection 9(1)(i)far analysistransactional net margin methodtax treatypermanent establishmentmost appropriate method

Judgments citing Set Satellite Pte Ltd. v. CIT

Ricardo Uk Limited, New Delhi vs. DCIT, Intl. Taxation, Circle- 3(1)(1), New Delhi

ITA 3967/DEL/2017[2011-12]Status: DisposedITAT Delhi17 Feb 2021AY 2011-12

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sanjay Kumar, Senior DR
Section 144C(3)Section 147Section 9(1)

…d be attributable to the Indian PE of the Appellant. 5. That the ld. CIT (A) has completely failed to appreciate the principle laid down by the Hon'ble Apex Court in the case of Morgan Stanley and Co. Inc. [(292 ITR 416) (SC)] and Set Satellite (Singapore) [(307 ITR 205) (Bom)], that in case the commission paid to Indian agent can be established to be at arm's length from an Indian transfer pricing perspective, no further profits shall be deemed to be attributable to the Indian agent. 6. That the ld. CIT (A) has completely disregarded the principle paid down by the Hon'ble Delhi High Court in the case of Rolls…

Asia Tv (Uk) Ltd, Mumbai vs. DDIT 1(1), Mumbai

In the result, the appeal for the AY 2006-07 is partly allowed

ITA 8011/MUM/2010[2006-07]Status: DisposedITAT Mumbai15 Feb 2021AY 2006-07

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2006-07 & Assessment Year: 2007-08

For Appellant: Mr. Niraj Sheth, ARFor Respondent: Mr. Sreenivas Raghavan, DR
Section 143(1)Section 143(3)Section 148

…being at arm’s length price, extinguishes any tax liability in the hands of Zee TV USA. Also reliance is placed by him on the decision in ADIT v. E-Funds (399 ITR 34) (SC), DIT v. Morgan Stanley (292 ITR 416) (SC), Set Satellite (Singapore) Pte. Ltd. v. DDIT (307 ITR 205) (Bom), DDIT (IT) v. Asia Today Limited (4346/Mum/2009), DIT (IT) v. Delmas France (232 Taxman 401) (Bom), International Global Networks ITA No. 8011 & 8012/2010 7 Asia TV (UK) Ltd. BV v. ADIT (IT) [84 taxmann.com 188, DDIT v. B4U International Holdings Ltd. (23 taxmann.com 372) and DIT v. B4U International Holdings Ltd. (374 ITR 453) (Bom. HC)…

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

…ble in India. 4. In the remaining two cross-objections, i.e. CO No 63 and 64/Mum/2008, the issue raised in the cross objection remained the same, but with the benefit of Hon'ble Bombay High Court's judgment in the case of Set Satellite Pte Ltd Vs CIT [(2009) 307 ITR 205 (Bom)] in the meantime, wordings of the grievances have become a little more elaborate as follows: Without prejudice to the judgment of Hon'ble CIT(A), wherein it is held that the assessee has no PE in India and hence income is not taxable in India, even if it is held that the assessee has a PE in India, the income of the assessee is not taxable…

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

…ble in India. 4. In the remaining two cross-objections, i.e. CO No 63 and 64/Mum/2008, the issue raised in the cross objection remained the same, but with the benefit of Hon'ble Bombay High Court's judgment in the case of Set Satellite Pte Ltd Vs CIT [(2009) 307 ITR 205 (Bom)] in the meantime, wordings of the grievances have become a little more elaborate as follows: Without prejudice to the judgment of Hon'ble CIT(A), wherein it is held that the assessee has no PE in India and hence income is not taxable in India, even if it is held that the assessee has a PE in India, the income of the assessee is not taxable…

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

…ble in India. 4. In the remaining two cross-objections, i.e. CO No 63 and 64/Mum/2008, the issue raised in the cross objection remained the same, but with the benefit of Hon'ble Bombay High Court's judgment in the case of Set Satellite Pte Ltd Vs CIT [(2009) 307 ITR 205 (Bom)] in the meantime, wordings of the grievances have become a little more elaborate as follows: Without prejudice to the judgment of Hon'ble CIT(A), wherein it is held that the assessee has no PE in India and hence income is not taxable in India, even if it is held that the assessee has a PE in India, the income of the assessee is not taxable…

M/S. Ngc Network Asia, Llc, Mumbai vs. The ITO (It) 3(2), Mumbai

In the result, appeal of the assessee for A

ITA 1662/MUM/2008[2004-2005]Status: DisposedITAT Mumbai30 Dec 2020AY 2004-2005

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm M/S.Ngc Network Asia Llc Vs. Dy. Director Of Income Tax C/O. Dsk Legal (International Tax)– 3(2) 4Th Floor, Express Towers Scindia House Nariman Point Ballard Estate Mumbai – 400 021 Mumbai – 400 038 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S.Ngc Network Asia Llc Vs. Assistant Director Of C/O. Ngc Network(India) Income Tax (International Private Limited Tax)– 3(2) 1St Floor, Scindia House Star House, Dr. E. Moses Road, Mahalaxmi Ballard Estate Mumbai – 400 001 Mumbai – 400001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(1) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400001 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) M/S. Ngc Network Asia Ltd., M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(1) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400038 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) & M/S.Ngc Network Asia Llc Vs. The Income Tax Officer C/O. Ngc Network(India) (International Tax) 3(2) Private Limited Scindia House Star House, Dr. E. Moses Ballard Estate Road, Mahalaxmi Mumbai – 400038 Mumbai – 400 001 Pan/Gir No.Aabcn3136G (Appellant) .. (Respondent) Assessee By Shri Porus Kaka Revenue By Shri Shreenivasaraghava Iyengar Date Of Hearing 18/12/2020 Date Of Pronouncement 30/12/2020

Section 143(3)Section 147

…ions of the Hon‟ble High Court including the Hon‟ble Jurisdictional High Courts and Tribunal as under:- M/s. NGC Network Asia Ltd., a. Decision of the Hon‟ble Jurisdictional High Court in the case of Set Satellite (Singapore) PTE Limited vs. DDIT reported in 307 ITR 205 (Bom), wherein the Hon‟ble High Court had observed that if the correct arm‟s length price is applied and paid, then nothing further would left to be taxed in the hands of foreign enterprises. The Hon‟ble High Court was dealing with a foreign telecasting company, similarly to the assessee herein for the A.Y. 1999-2000 (i.e prior to the applicabili…

Msm Discovery P.Ltd, Mumbai vs. Asst CIT 12(3)(2), Mumbai

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

ITA 1935/MUM/2017[2012-13]Status: DisposedITAT Mumbai12 Oct 2020AY 2012-13

Bench: Shri Pramod Kumar & Shri Ravish Soodmsm Discovery Private Ltd. The Asst. Commissioner Of Income Interface Building No. 7, Tax-12(3)(2) 4Th Floor, Malad Link Road, Room No. 147B, 1St Floor, Vs. Malad (W), Aayakar Bhavan, M.K. Road Mumbai- 400 064 Churchgate, Mumbai – 400 020 Pan – Aagcs4253E (Appellant) (Respondent)

For Appellant: Shri P.J. Pardiwala, Senior AdvocateFor Respondent: Shri A. Mohan, CIT D.R
Section 143(3)Section 92C

…ing right to distribute TV channels is not in the nature of Royalty but is in the nature of business income therefore not subjected to withholding tax?‖ Relying on its earlier order passed in the case of Set Satellite (Singapore) Pte. Ltd Vs Deputy DIT (2008) 307 ITR 205 (Bom), the Hon‘ble High Court had observed that no substantial question of law was involved as the issue was already decided in the favour of the assessee. In fact, we find that the aforesaid issue had also been looked into by the Tribunal in the assessee‘s own case for A.Y. 2011-12 in ITA No. 971/Mum/2016, dated 13.03.2020. In its aforesaid orde…

Delmas (Uk) Limited, Mumbai vs. DDIT (It)-4(2), Mumbai

In the result, ITA No, 8423/Mum/10 is also allowed in the above terms

ITA 2496/MUM/2009[2005-2006]Status: DisposedITAT Mumbai27 May 2020AY 2005-2006
Section 143(3)Section 44B

…noticed that it is admittedly a case of dependent agent permanent establishment (DAPE), it was put, as a proposition, to the parties that in view of Hon'ble jurisdictional High Court's judgment in the case of Set Satellite (Singapore) Pte Ltd v. DDIT [(2008) 307 ITR 205 (Bom.)] the controversy regarding existence of permanent establishment could perhaps be a wholly academic issue inasmuch as once the agent is paid an arm's length remuneration for the services rendered, as is not even in dispute in the present case, no further profit can be attributed to the PE. In other words, the proposition was that, as the la…

DDIT, New Delhi vs. M/S. Mitsui and Co. Ltd., New Delhi

In the result, all the three appeals filed by the Revenue are dismissed and the two appeals filed by the assessee are allowed

ITA 794/DEL/2012[2008-09]Status: DisposedITAT Delhi07 Jan 2020AY 2008-09

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri G.K. Dhall, CIT, DR
Section 44B

…ance on the order of the IT AT, Bombay Bench in DDIT vs. Set Satellite (Singapore) Pte Ltd. (2007) 106 ITD 175( Mumbai): (2007) 108 TTJ (Mumbai)445 which has been set aside by the Hon’ble Bombay High Court by their judgment dated 22nd August, 2008 reported in 307 ITR 205 (Bombay):218 CTR (Bom) 452: 173 Taxman 475:11 DTR 313(Bom). The matter is directly covered by that judgment in which the Bombay High Court has followed the judgment of DIT, International Taxation, Vs Morgan Stanley & Co. (2007) 292 ITR 416 (SC). The AO has no doubt taken note of the judgment of the DIT, International Taxation vs Morgan Stanley &…

M/S. Mitsui & Co. Ltd., New Delhi vs. DDIT, New Delhi

In the result, all the three appeals filed by the Revenue are dismissed and the two appeals filed by the assessee are allowed

ITA 4367/DEL/2011[2007-08]Status: DisposedITAT Delhi07 Jan 2020AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri G.K. Dhall, CIT, DR
Section 44B

…ance on the order of the IT AT, Bombay Bench in DDIT vs. Set Satellite (Singapore) Pte Ltd. (2007) 106 ITD 175( Mumbai): (2007) 108 TTJ (Mumbai)445 which has been set aside by the Hon’ble Bombay High Court by their judgment dated 22nd August, 2008 reported in 307 ITR 205 (Bombay):218 CTR (Bom) 452: 173 Taxman 475:11 DTR 313(Bom). The matter is directly covered by that judgment in which the Bombay High Court has followed the judgment of DIT, International Taxation, Vs Morgan Stanley & Co. (2007) 292 ITR 416 (SC). The AO has no doubt taken note of the judgment of the DIT, International Taxation vs Morgan Stanley &…

DDIT, New Delhi vs. M/S. Mitsui & Co. Ltd., New Delhi

In the result, all the three appeals filed by the Revenue are dismissed and the two appeals filed by the assessee are allowed

ITA 4329/DEL/2011[2007-08]Status: DisposedITAT Delhi07 Jan 2020AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri G.K. Dhall, CIT, DR
Section 44B

…ance on the order of the IT AT, Bombay Bench in DDIT vs. Set Satellite (Singapore) Pte Ltd. (2007) 106 ITD 175( Mumbai): (2007) 108 TTJ (Mumbai)445 which has been set aside by the Hon’ble Bombay High Court by their judgment dated 22nd August, 2008 reported in 307 ITR 205 (Bombay):218 CTR (Bom) 452: 173 Taxman 475:11 DTR 313(Bom). The matter is directly covered by that judgment in which the Bombay High Court has followed the judgment of DIT, International Taxation, Vs Morgan Stanley & Co. (2007) 292 ITR 416 (SC). The AO has no doubt taken note of the judgment of the DIT, International Taxation vs Morgan Stanley &…

DDIT, New Delhi vs. M/S Mitsui & Co. Ltd., New Delhi

In the result, all the three appeals filed by the Revenue are dismissed and the two appeals filed by the assessee are allowed

ITA 2801/DEL/2011[2006-07]Status: DisposedITAT Delhi07 Jan 2020AY 2006-07

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri G.K. Dhall, CIT, DR
Section 44B

…ance on the order of the IT AT, Bombay Bench in DDIT vs. Set Satellite (Singapore) Pte Ltd. (2007) 106 ITD 175( Mumbai): (2007) 108 TTJ (Mumbai)445 which has been set aside by the Hon’ble Bombay High Court by their judgment dated 22nd August, 2008 reported in 307 ITR 205 (Bombay):218 CTR (Bom) 452: 173 Taxman 475:11 DTR 313(Bom). The matter is directly covered by that judgment in which the Bombay High Court has followed the judgment of DIT, International Taxation, Vs Morgan Stanley & Co. (2007) 292 ITR 416 (SC). The AO has no doubt taken note of the judgment of the DIT, International Taxation vs Morgan Stanley &…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- 2(2)(1), International Taxation, New Delhi

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 3327/DEL/2018[2013-14]Status: HeardITAT Delhi02 Sept 2019AY 2013-14

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…an. He submitted that arm’s length principle as the primary basis for attributing profit to PE laid down by the Hon’ble Supreme Court, has been extensively followed High Courts / benches of the Tribunal in the undernoted judicial precedents:  SET Satellite (307 ITR 205) [Bombay High Court]  BBC Worldwide (307 SOT 253) [Delhi ITAT]  E-fund IT Solutions (364 ITR 256) [Delhi High Court], confirmed by Supreme Court  Rolls Royce Plc (339 ITR 147) [Delhi High Court]  Rolls Royce Singapore (347 ITR 192) [Delhi High Court]  Hyundai Rotem Company (ITA No. 3300 to 3302/DEL/2009) [Delhi ITAT]  Galileo International…

M/S. Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT (International Taxation), Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 1946/DEL/2017[2007-08]Status: HeardITAT Delhi02 Sept 2019AY 2007-08

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…an. He submitted that arm’s length principle as the primary basis for attributing profit to PE laid down by the Hon’ble Supreme Court, has been extensively followed High Courts / benches of the Tribunal in the undernoted judicial precedents:  SET Satellite (307 ITR 205) [Bombay High Court]  BBC Worldwide (307 SOT 253) [Delhi ITAT]  E-fund IT Solutions (364 ITR 256) [Delhi High Court], confirmed by Supreme Court  Rolls Royce Plc (339 ITR 147) [Delhi High Court]  Rolls Royce Singapore (347 ITR 192) [Delhi High Court]  Hyundai Rotem Company (ITA No. 3300 to 3302/DEL/2009) [Delhi ITAT]  Galileo International…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- Noida, International Taxation, Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 6916/DEL/2017[2008-09]Status: HeardITAT Delhi02 Sept 2019AY 2008-09

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…an. He submitted that arm’s length principle as the primary basis for attributing profit to PE laid down by the Hon’ble Supreme Court, has been extensively followed High Courts / benches of the Tribunal in the undernoted judicial precedents:  SET Satellite (307 ITR 205) [Bombay High Court]  BBC Worldwide (307 SOT 253) [Delhi ITAT]  E-fund IT Solutions (364 ITR 256) [Delhi High Court], confirmed by Supreme Court  Rolls Royce Plc (339 ITR 147) [Delhi High Court]  Rolls Royce Singapore (347 ITR 192) [Delhi High Court]  Hyundai Rotem Company (ITA No. 3300 to 3302/DEL/2009) [Delhi ITAT]  Galileo International…

Ge Energy Parts Inc vs. Commissioner Ofincome Tax (International Taxation), Delhi - I

ITA/621/2017HC Delhi21 Dec 2018

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 260A

…admitting that GE overseas has a PE in India, placing reliance on the decision of Supreme Court in the case of DIT vs. Morgan Stanley (292 ITR 416) as affirmed by the Mumbai High Court judgment in the case of SET Satellite (Singapore) Pte. Ltd. vs. DCIT (307 ITR 205), no further profits can be either attributed or taxed in hands of the alleged PE". This contention of the assessee is not acceptable for the following reasons: ITA 621/2017 & connected matters Page 81 of 85 (i) The service agreement between GE Power/ GEIIPL provides for performance of very specific services and which centre around…

Pr Commr of Income Tax-2, Hyderabad vs. K Ravinder Reddy, Hyderabad

ITTA/621/2017HC Telangana23 Aug 2018

Bench: RAMESH RANGANATHAN,KONGARA VIJAYA LAKSHMI

Espn Star Sports Mauritius S.N.C. Et Compagnie, Mauritius vs. DDIT, New Delhi

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

ITA 3411/DEL/2010[2004-05]Status: DisposedITAT Delhi20 Aug 2018AY 2004-05

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

For Appellant: S/Shri Porus Kaka, Sr. Adv. &For Respondent: Shri G.K. Dhall, CIT-D.R
Section 143(3)Section 9

…elied upon by the assessee specifically the judgment of Hon'ble Supreme Court in the case of DIT vs. Morgan Stanley & Co., reported in (2009) 292 ITR 416 (SC); and the judgments of Hon'ble Bombay High Court in the case of Set Satellite (Singapore) Pte. Ltd., (307 ITR 205 (Bom) and Delhi High Court in Gallilio International, 371 CTR 251 (Del.) and catena of other decisions. 6. However, ld. CIT (A) did not accept the assessee’s contention and the various judgments relied upon by the assessee on the ground that; the TPO has carried out the transfer pricing analysis with regard to the function performed by the India…

Espn Star Sports Mauritius S.N.C. Et Compagnie, Mauritius vs. DDIT, New Delhi

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

ITA 3410/DEL/2010[2003-04]Status: DisposedITAT Delhi20 Aug 2018AY 2003-04

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

For Appellant: S/Shri Porus Kaka, Sr. Adv. &For Respondent: Shri G.K. Dhall, CIT-D.R
Section 143(3)Section 9

…elied upon by the assessee specifically the judgment of Hon'ble Supreme Court in the case of DIT vs. Morgan Stanley & Co., reported in (2009) 292 ITR 416 (SC); and the judgments of Hon'ble Bombay High Court in the case of Set Satellite (Singapore) Pte. Ltd., (307 ITR 205 (Bom) and Delhi High Court in Gallilio International, 371 CTR 251 (Del.) and catena of other decisions. 6. However, ld. CIT (A) did not accept the assessee’s contention and the various judgments relied upon by the assessee on the ground that; the TPO has carried out the transfer pricing analysis with regard to the function performed by the India…

Corning Sas-India Branch Office, Gurgaon vs. DDIT, New Delhi

The appeal of the Assessee is allowed

ITA 4795/DEL/2010[2005-06]Status: DisposedITAT Delhi30 May 2018AY 2005-06

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 4678/Del/2010 (A.Y 2005-06)

Section 143(3)Section 9Section 92C

…into account all the functions, assets and risks, no further allocation of profit is required. The Ld. AR also relied on following decisions: i. ADIT vs. E-Funds IT Solutions Inc 399 ITR 34 (SC) ii. Set Satellite (Singapore) Pte Ltd. vs. DDIT (Intl Taxation) 307 ITR 205 (Bom) Thus, the Ld. AR submitted that the Assessing Officer erred on facts and in law in allocating additional profit to the assessee, branch office of Corning SAS, in addition to the commission income earned @ 3% on direct sales made by Corning SAS to customers in India. 7. The Ld. AR further submitted that the Assessing Officer, in the impugn…