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

Dy. Director of Income Tax, New Delhi vs. Corning Sas- India Branch Office, Gurgaon

The appeal of the Assessee is allowed

ITA 4678/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…

Taj Tv Ltd, Mumbai vs. Addl DIT (It) RG 2, Mumbai

In the result, the appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 456/MUM/2013[2008-09]Status: DisposedITAT Mumbai23 Dec 2016AY 2008-09

Bench: Sri Amit Shukla,Jm & Sri Ashwani Taneja,Am

Section 143(3)Section 144CSection 195Section 40Section 9Section 9(1)

…Supreme Court has been reiterated and applied by the Hon‟ble Bombay High Court in the case of „Set Satellite (Singapore) Pte Ltd. reported in 12 ITA No.2065/Mum/2012 (AY: 2007 -08) ITA No.2073/Mum/2012 (AY: 2007 -08) ITA No.391/Mum/2013: (AY: 2008 -09) [2008] 307 ITR 205. In this case, the Hon‟ble High Court was dealing with Article 5(8) and 5 (9) of India-Singapore DTAA which deals with Agency PE and after analyzing Article 7,observed in Para 10, 11 and 12 as under:- 10. From a reading of art. 7(1) of the DTAA it is clear that the profits of an enterprise of a "Contracting State shall be taxable only in that St…

Addl DIT RG 2, Mumbai vs. Taj Tv Ltd, Mumbai

In the result, the appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 391/MUM/2013[2008-09]Status: DisposedITAT Mumbai23 Dec 2016AY 2008-09

Bench: Sri Amit Shukla,Jm & Sri Ashwani Taneja,Am

Section 143(3)Section 144CSection 195Section 40Section 9Section 9(1)

…Supreme Court has been reiterated and applied by the Hon‟ble Bombay High Court in the case of „Set Satellite (Singapore) Pte Ltd. reported in 12 ITA No.2065/Mum/2012 (AY: 2007 -08) ITA No.2073/Mum/2012 (AY: 2007 -08) ITA No.391/Mum/2013: (AY: 2008 -09) [2008] 307 ITR 205. In this case, the Hon‟ble High Court was dealing with Article 5(8) and 5 (9) of India-Singapore DTAA which deals with Agency PE and after analyzing Article 7,observed in Para 10, 11 and 12 as under:- 10. From a reading of art. 7(1) of the DTAA it is clear that the profits of an enterprise of a "Contracting State shall be taxable only in that St…

ADIT Cir 2(2), Mumbai vs. Taj Tv Ltd, Mumbai

In the result, the appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 2073/MUM/2012[2007-08]Status: DisposedITAT Mumbai23 Dec 2016AY 2007-08

Bench: Sri Amit Shukla,Jm & Sri Ashwani Taneja,Am

Section 143(3)Section 144CSection 195Section 40Section 9Section 9(1)

…Supreme Court has been reiterated and applied by the Hon‟ble Bombay High Court in the case of „Set Satellite (Singapore) Pte Ltd. reported in 12 ITA No.2065/Mum/2012 (AY: 2007 -08) ITA No.2073/Mum/2012 (AY: 2007 -08) ITA No.391/Mum/2013: (AY: 2008 -09) [2008] 307 ITR 205. In this case, the Hon‟ble High Court was dealing with Article 5(8) and 5 (9) of India-Singapore DTAA which deals with Agency PE and after analyzing Article 7,observed in Para 10, 11 and 12 as under:- 10. From a reading of art. 7(1) of the DTAA it is clear that the profits of an enterprise of a "Contracting State shall be taxable only in that St…

Taj Tv Ltd, Mumbai vs. Addl DIT RG 2, Mumbai

In the result, the appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 2065/MUM/2012[2007-08]Status: DisposedITAT Mumbai23 Dec 2016AY 2007-08

Bench: Sri Amit Shukla,Jm & Sri Ashwani Taneja,Am

Section 143(3)Section 144CSection 195Section 40Section 9Section 9(1)

…Supreme Court has been reiterated and applied by the Hon‟ble Bombay High Court in the case of „Set Satellite (Singapore) Pte Ltd. reported in 12 ITA No.2065/Mum/2012 (AY: 2007 -08) ITA No.2073/Mum/2012 (AY: 2007 -08) ITA No.391/Mum/2013: (AY: 2008 -09) [2008] 307 ITR 205. In this case, the Hon‟ble High Court was dealing with Article 5(8) and 5 (9) of India-Singapore DTAA which deals with Agency PE and after analyzing Article 7,observed in Para 10, 11 and 12 as under:- 10. From a reading of art. 7(1) of the DTAA it is clear that the profits of an enterprise of a "Contracting State shall be taxable only in that St…

Taj Tv Ltd, Mumbai vs. Addl DIT (It) RG 2, Mumbai

In the result, the appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 9079/MUM/2010[2006-07]Status: DisposedITAT Mumbai23 Dec 2016AY 2006-07

Bench: Sri Amit Shukla,Jm & Sri Ashwani Taneja,Am

Section 143(3)Section 144CSection 195Section 40Section 9Section 9(1)

…Supreme Court has been reiterated and applied by the Hon‟ble Bombay High Court in the case of „Set Satellite (Singapore) Pte Ltd. reported in 12 ITA No.2065/Mum/2012 (AY: 2007 -08) ITA No.2073/Mum/2012 (AY: 2007 -08) ITA No.391/Mum/2013: (AY: 2008 -09) [2008] 307 ITR 205. In this case, the Hon‟ble High Court was dealing with Article 5(8) and 5 (9) of India-Singapore DTAA which deals with Agency PE and after analyzing Article 7,observed in Para 10, 11 and 12 as under:- 10. From a reading of art. 7(1) of the DTAA it is clear that the profits of an enterprise of a "Contracting State shall be taxable only in that St…

ADIT (It) (2), Mumbai vs. Daimler Ag, Mumbai

ITA 7648/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Sept 2016AY 2008-09

Bench: Shri R.C. Sharma, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 7648 & 7649/Mum/2013 ("नधा"रण वष" / Assessment Year: 2008-09 & 2009-10) Asst. Dit(It) -1(2), M/S. Daimler Ag Room No.119, 1St Floor, Scindia C/O Srbc & Associates 14Th Floor, The Ruby 29, बनाम/ House, N.M. Road, Ballard Estate, Mumbai-400 038. Senapati Bapat Marg Vs. Dadar (West) Mumbai-400 028. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabcd 2354C (अपीलाथ" /Appellant) (""यथ" / Respondent) :

For Appellant: Shri Hemen Chandariya
Section 143(3)Section 195Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, AM AND SHRI SANDEEP GOSAIN, JM आयकर अपील सं./ I.T.A. No. 7648 & 7649/Mum/2013 ("नधा"रण वष" / Assessment Year: 2008-09 & 2009-10) Asst. DIT(IT) -1(2), M/s. Daimler AG Room No.119, 1st Floor, Scindia C/o SRBC & Associates 14th Floor, The Ruby 29, बनाम/ House, N.M. Road, Ballard Estate, Mumbai-400 038. Senapati Bapat Marg Vs. Dadar (West) Mumbai-400 028. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AABCD 2354C (अपीलाथ" /Appellant) (""यथ" / Respondent) : : Shri Harshad Vengurlekar अपीलाथ" क" ओर से / Appellant by : Shri Hemen Chandariya ""यथ"…

M/S. Zte Corporation, Gurgaon vs. ADIT, New Delhi

In the result, this ground is

ITA 1109/DEL/2014[2009-10]Status: DisposedITAT Delhi30 May 2016AY 2009-10

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…ands of the foreign enterprise, has been laid down by the Apex Court of India, in the case of Morgan Stanley & Co. Inc. vs, DIT The same principle has been followed by the Hon'ble Bombay High Court in the case of SET Satellite (Singapore) Pte Limited ('SET') (307 ITR 205) . The authorized OECD approach is to apply the arm's length principle of Article 9, as articulated in the Guidelines, to the attribution of profit to a PE using the arm"s length principle under Article 7(2).In the instant case, it is evidenced that the transfer pricing analysis of ZTE India for FY 2008-09 duly reflects the functions performed an…

DDIT, New Delhi vs. M/S Zte Corporation

In the result, this ground is

ITA 5974/DEL/2012[2004-05]Status: DisposedITAT Delhi30 May 2016AY 2004-05

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…ands of the foreign enterprise, has been laid down by the Apex Court of India, in the case of Morgan Stanley & Co. Inc. vs, DIT The same principle has been followed by the Hon'ble Bombay High Court in the case of SET Satellite (Singapore) Pte Limited ('SET') (307 ITR 205) . The authorized OECD approach is to apply the arm's length principle of Article 9, as articulated in the Guidelines, to the attribution of profit to a PE using the arm"s length principle under Article 7(2).In the instant case, it is evidenced that the transfer pricing analysis of ZTE India for FY 2008-09 duly reflects the functions performed an…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

ITA 5871/DEL/2012[2005-06]Status: DisposedITAT Delhi30 May 2016AY 2005-06

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…ands of the foreign enterprise, has been laid down by the Apex Court of India, in the case of Morgan Stanley & Co. Inc. vs, DIT The same principle has been followed by the Hon'ble Bombay High Court in the case of SET Satellite (Singapore) Pte Limited ('SET') (307 ITR 205) . The authorized OECD approach is to apply the arm's length principle of Article 9, as articulated in the Guidelines, to the attribution of profit to a PE using the arm"s length principle under Article 7(2).In the instant case, it is evidenced that the transfer pricing analysis of ZTE India for FY 2008-09 duly reflects the functions performed an…

Zte Corporation vs. ADIT, New Delhi

In the result, this ground is

ITA 5870/DEL/2012[2004-05]Status: DisposedITAT Delhi30 May 2016AY 2004-05

Bench: Shri S.V. Mehrotra : & Smt. Beena A. Pillai:

For Appellant: Shri Deepak Chopra AdvFor Respondent: Shri Sanjeev Sharma CIT(DR)
Section 133ASection 139Section 148

…ands of the foreign enterprise, has been laid down by the Apex Court of India, in the case of Morgan Stanley & Co. Inc. vs, DIT The same principle has been followed by the Hon'ble Bombay High Court in the case of SET Satellite (Singapore) Pte Limited ('SET') (307 ITR 205) . The authorized OECD approach is to apply the arm's length principle of Article 9, as articulated in the Guidelines, to the attribution of profit to a PE using the arm"s length principle under Article 7(2).In the instant case, it is evidenced that the transfer pricing analysis of ZTE India for FY 2008-09 duly reflects the functions performed an…

Ngc Network Asia Llc, Mumbai vs. Jdit (It) RG 4, Mumbai

In the result, both the appeals filed by the assessee are treated as partly allowed for statistical purposes

ITA 7631/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Dec 2015AY 2008-09

Bench: S/Shri B.R.Baskaran (Am) & Amit Shukla, (Jm) सर्वश्री बी.आर.बास्करन, ऱेखा सदस्य एवं अमित शुक्ऱा, न्याययक सदस्य के समक्ष आमकय अऩीर सं./I.T.A. No.7994/Mum/2011 & Ita No.7631/Mum/2012 (ननधधायण वषा / Assessment Year :2007-08 & 2008-09) बनाम/ Ngc Network Asia Llc, Joint Director Of Income Tax C/O S R Batliboi & Co., (International Taxation), Vs. 14Th Floor, The Ruby, Range-4, Senapati Bapat Marg, Scindia House, Tulsi Pipe Road, Ballard Estate, Dadar (W), Mumbai-400038. Mumbai-400028 (अऩीरधथी /Appellant) (प्रत्मथी / Respondent) .. स्थधमी रेखध सं./जीआइआय सं./Pan: Aabcn3136G अऩीरधथी ओय से / Appellant By Shri Porus Kaka & Ms.Sheetal Shah प्रत्मथी की ओय से/Rspondent By Ms.Vandana Sagar सुनवधई की तधयीख / Date Of Hearing : 4.9.2015 घोषणध की तधयीख /Date Of Pronouncement : 16.12.2015 आदेश / O R D E R Per B.R. Baskaran (Am) These Are The Two Appeals Filed By The Assessee Against The Assessment Orders Passed For Assessment Years 2007-08 & 2008-09 In Pursuance Of Directions Issued By The Dispute Resolution Panel (Drp). Since Issues Urged In These Two Appeals Are Identical In Nature, They Are Being Disposed Of By This Common Order, For The Sake Of Convenience.

Section 9(1)(vi)

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ “एऱ” म ुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA, (JM) सर्वश्री बी.आर.बास्करन, ऱेखा सदस्य एवं अमित शुक्ऱा, न्याययक सदस्य के समक्ष आमकय अऩीर सं./I.T.A. No.7994/Mum/2011 And ITA No.7631/Mum/2012 (ननधधायण वषा / Assessment Year :2007-08 and 2008-09) बनाम/ NGC Network Asia LLC, Joint Director of Income Tax C/o S R Batliboi and Co., (International Taxation), Vs. 14th floor, The Ruby, Range-4, Senapati Bapat Marg, Scindia House, Tulsi Pipe road, Ballard Estate, Dadar (W), Mumbai-400038. Mumbai-400028 (अऩीरधथी /Appellant…

Director of Income Tax vs. Bbc Worldwide Ltd

ITA/1341/2010HC Delhi30 Sept 2011

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 92C

…ame very commission paid by the BWIPL was accepted at Arm‘s Length Price (ALP) and that it constituted it were transferred price. The assessee also referred to the judgment of Bombay High Court in the case of SET Satellite (Singapore) Pvt. Ltd. Vs. DDIT, 307 ITR 205 (Bom.) holding that the payment of service fee @ 15% of the gross advertisement revenue to its agent represented the price computed on the ALP principle. The judgment of this Court in the case of DIT Vs. Galileo International Incorporation, 114 TTJ 289 (Del) was also referred. It was submitted that in Galileo International Incorpor…

CIT vs. Bbc Worldwide Ltd

ITA - 705 / 2011HC Delhi30 Sept 2011
Section 92C

…the same very commission paid by the BWIPL was accepted at Arm's Length Price (ALP) and that it constituted it were transferred price. The assessee also referred to the judgment of Bombay High Court in the case of SET Satellite (Singapore) Pvt. Ltd. Vs. DDIT, 307 ITR 205 (Bom.) holding that the payment of service fee @ 15% of the gross advertisement revenue to its agent represented the price computed on the ALP principle. The judgment of this Court International Galileo Vs. of DIT Incorporation, 114 TTJ 289 (Del) was also referred. It was submitted that in Galileo International Incorporation ![](_page_6_Picture_…

Director of Income Tax vs. Bbc Worldwise Ltd

ITA-1341/2010HC Delhi30 Sept 2011
Section 92C

…ame very commission paid by the BWIPL was accepted at Arm‘s Length Price (ALP) and that it constituted it were transferred price. The assessee also referred to the judgment of Bombay High Court in the case of SET Satellite (Singapore) Pvt. Ltd. Vs. DDIT, 307 ITR 205 (Bom.) holding that the payment of service fee @ 15% of the gross advertisement revenue to its agent represented the price computed on the ALP principle. The judgment of this Court in the case of DIT Vs. Galileo International Incorporation, 114 TTJ 289 (Del) was also referred. It was submitted that in Galileo International Incorpor…

Rolls Royce Singapore Pvt. Ltd vs. Assistant Director of Income Tax

The appeals of the assessee are partly allowed to the

ITA-1278/2010HC Delhi30 Aug 2011

…2011 ITA 256/2011,ITA 257/2011,ITA 258/2011,ITA 259/2011, ITA 260/2011 49. He also referred to the judgment of the Bombay High Court in Set Sattellite (Singapore) PTE Ltd. Vs. Deputy Director if Income-Tax, International Taxation and another (2008) 307 ITR 205 (Bom) wherein the Court held that when an agent in India was taxed on the fare value of activities in India, the same could not be taxed all over again in the hands of the assessee as being income attributable to deem permanent establishment. This very Treaty between Singapore and India was interpreted in the following manner: “From a…