Shriram Pistons & Rings Ltd. v. CIT

307 ITR 363High Court2008#6631 most cited

What is Shriram Pistons & Rings Ltd. v. CIT authority for?

Payment for the transfer of technical know-how, particularly when it involves guidance, information, or consultancy for manufacturing and selling a product, can be considered royalty if it grants a right to use rather than an outright sale of technology. Restrictions on assignment and termination clauses in the agreement are relevant factors in this determination.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2009 to 2018.

Also referred to as

Shriram Pistons & Rings Ltd. v. CIT · 307 ITR 363 · technical know-how · technical assistance · royalty · transfer of technology · right to use · consultancy · collaboration agreement

Read the full judgment

Judgments citing Shriram Pistons & Rings Ltd. v. CIT

Luthra & Luthra Law Offices New Delhi, New Delhi vs. JCIT, New Delhi

In the result, the appeal of the assessee is dismissed

ITA 802/DEL/2015[2010-11]Status: DisposedITAT Delhi20 Dec 2018AY 2010-11

Bench: Shri Bhavnesh Saini & Shri O.P. Kantasstt. Year: 2010-11 Luthra & Luthra Law Offices Jcit 9Th Floor & 103, Range-37 Vs. Ashoka Estate, Barakhamba New Delhi. Road, New Delhi – 110 001 Pan Aabfl3712B (Appellant) (Respondent)

For Appellant: Shri Sumit Mangal, AdvocateFor Respondent: Smt. Naina Soin Kapil, Sr. DR
Section 143(2)Section 143(3)Section 250

…he employees. The Ld. Counsel in support of the claim that reward to employees for good work is allowable under section 37(1) of the Act, he relied on the decision of the Hon’ble Delhi High Court in the case of Shriram Pistons and Rings Ltd. versus CIT (2008) 307 ITR 363 (Delhi). 8. On the issue of expenses of Rs. 49,172/-for T-shirts, Rs. 46,204/- for Caps and Rs. 1,65,375/- for jackets, the assessee submitted before the Ld. CIT(A) that these items were distributed during Annual Conference of the firm to the counsels associated with the firm, which is a normal business practice and accepted business expenditure.…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 467/DEL/2014[2009-10]Status: DisposedITAT Delhi17 Oct 2018AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

Section 143(3)Section 144CSection 144C(5)Section 43Section 43B

…Industries Ltd. v. CIT: 127 ITR 746(Del) • Triveni Engineering Works Ltd. v. CIT 136: ITR 340 (Del) CIT v. Sharda Motor Industrial Limited: 319 ITR 109 (Del) • • Climate Systems India Limited v. CIT: 319 ITR 113 (Del) Shriram Pistons and Rings Limited v. CIT: 307 ITR 363 (Del) • • CIT v Lumax Industries Limited 173 Taxman 390 (Del) • CIT v. J.K. Synthetics Ltd. 309 ITR 371 (Del) • CIT v. Munjal Showa Ltd.: 329 ITR 449 (Del) • CIT v. Denso India P. Ltd.: 232 Taxman 437 (Del.) • CIT v. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del.) • CIT v. Prem Heavy Engineering Works P. Limited: 282 ITR 11 (All.) • CIT v. Arto…

M/S. Vygon India (P) Ltd., New Delhi vs. ACIT, New Delhi

In the result appeal of the assessee is allowed

ITA 6659/DEL/2013[2005-06]Status: DisposedITAT Delhi17 Sept 2018AY 2005-06

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shukla

For Appellant: Shri Ashwani Taneja,AdvocateFor Respondent: Shri Amit Jain, Sr. DR
Section 143(3)Section 234BSection 43B

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.D. AGRAWAL, HON’BLE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA Nos. 6658,6659/Del/2013 Asstt. Years 2003-04, 2005-06 Vygon India (P) Ltd. ACIT, C/o M/s. RRA Taxindia Circle-17(1) D-28, South Extension, Part-1 New Delhi. New Delhi – 110 049 Vs. PAN AABCV0776C (Appellant) (Respondent) Assessee by: Shri Ashwani Taneja,Advocate Shri Rajat, CA Department by : Shri Amit Jain, Sr. DR Date of Hearing 19/06/2018 Date of 17/ 09/2018 pronouncement O R D E R PER AMIT SHUKLA: The aforesaid appeals have been filed by the assessee against…

M/S. Vygon India (P) Ltd., New Delhi vs. ACIT, New Delhi

In the result appeal of the assessee is allowed

ITA 6658/DEL/2013[2003-04]Status: DisposedITAT Delhi17 Sept 2018AY 2003-04

Bench: Shri G.D. Agrawal, Hon’Ble & Shri Amit Shukla

For Appellant: Shri Ashwani Taneja,AdvocateFor Respondent: Shri Amit Jain, Sr. DR
Section 143(3)Section 234BSection 43B

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.D. AGRAWAL, HON’BLE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA Nos. 6658,6659/Del/2013 Asstt. Years 2003-04, 2005-06 Vygon India (P) Ltd. ACIT, C/o M/s. RRA Taxindia Circle-17(1) D-28, South Extension, Part-1 New Delhi. New Delhi – 110 049 Vs. PAN AABCV0776C (Appellant) (Respondent) Assessee by: Shri Ashwani Taneja,Advocate Shri Rajat, CA Department by : Shri Amit Jain, Sr. DR Date of Hearing 19/06/2018 Date of 17/ 09/2018 pronouncement O R D E R PER AMIT SHUKLA: The aforesaid appeals have been filed by the assessee against…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

ITA 6021/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Nov 2017AY 2008-09

Bench: Shri N.K. Saini & Shri K.N. Charry

Section 143(3)Section 144CSection 144C(5)Section 14ASection 35DSection 43BSection 92C

…: 127 ITR 746(Del), Triveni Engineering Works Ltd. v. CIT 136: ITR 340 (Del), CIT v. Sharda Motor Industrial Limited: 319 ITR 109 (Del), Climate Systems India Limited ITA No.-6021/Del/2012 v. CIT: 319 ITR 113 (Del), Shriram Pistons and Rings Limited v. CIT: 307 ITR 363 (Del), CIT v Lumax Industries Limited 173 Taxman 390 (Del), CIT v. J.K. Synthetics Ltd. 309 ITR 371 (Del), CIT v. Munjal Showa Ltd. : 329 ITR 449 (Del), CIT v. Hero Honda Motors Ltd.: 372 ITR 481 (Del.), CIT v. Denso India P. Ltd.: 232 Taxman 437 (Del.) , CITv. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del.), CIT v. Prem Heavy Engineering Works…

M/S Hero Honda Motors Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by the assessee is allowed

ITA 2148/DEL/2009[2004-05]Status: DisposedITAT Delhi02 Feb 2017AY 2004-05

Bench: Sh C.M.Garg & Shri Prashant Maharishihero Honda Motors Ltd, Dcit, 34, Basant Lok, Vasant Vihar, Circle-12(1), Vs. New Delhi New Delhi Pan:Aaacg0812J (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. AK Saroha, CIT DR
Section 143(3)Section 195Section 263Section 32Section 37(1)Section 40Section 9

…inue to manufacture the product in the factories which had been set up. The cumulative effect on a construction of various terms and conditions of the agreement must be considered. Similar reasoning can be found in Shriram Pistons and Rings Ltd. v. CIT [2008] 307 ITR 363 (Delhi) ; [2008] 171 Taxman 81 (Delhi) which made specific reference to the fact that when the intellectual property rights remain with the foreign party, it indicates that what was granted was a mere licence, as the assessee was obliged to observe complete confidentiality as to know-how and could not have disclosed information or assigned the ag…

ITO, New Delhi vs. M/S. Modi Apollo International Group Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue for A

ITA 223/DEL/2011[2007-08]Status: DisposedITAT Delhi30 Nov 2016AY 2007-08

Bench: : Shri L.P. Sahu & Smt. Beena Pillai

For Appellant: Sh. Ajay Vohra, Sr. Advocate &For Respondent: Shri Rajesh Kumar, Sr. DR
Section 143(1)Section 195Section 35ASection 40

…v. CIT: 136 ITR 340 (Del) • CIT vs. Prem Heavy Engineering Works P. Limited: 282 ITR 11 (Del.) • Climate Systems India Limited v CIT; 319 ITR 113 (Del.) • Shriram Pistons and Rings Limited v CIT: 219 CTR 228 (Delhi) • Shriram Pistons and Rings Limited v CIT: 307 ITR 363 (Delhi) • CIT vs. Essel Propack: 325 ITR 185 (Bom) • CIT vEicher Motors Ltd: 163 Taxmann 556 (M.P.) • CIT V. Munjal Showa Ltd. : 329 ITR 449 (Del) • CIT v. Denso India P. Ltd.: ITAO 16/2008 (Del.) (HC) • CIT v. EKL Appliances Ltd : ITA No 1069/2011 (Del)(HC) • Honda Siel Cars v. ACIT : 111 TTJ 630 (Del) • CITv. Modi Revlon(P) Ltd: 210 Taxman…

Birla Sunlife Asset Management Co. Ltd., Mumbai vs. D.C.I.T. RG. 8(1), Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 2200/MUM/2012[2009-10]Status: DisposedITAT Mumbai25 Oct 2016AY 2009-10

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2009-10 M/S Birla Sun Life Asset Dcit, Management Company Range-8(1), बनाम/ Limited, Mumbai Vs. One India Bulls Centre, Tower 1, 17Th Floor, Jupiter Mill Compound, 841 Senapati Bapat Marg, Elphinstone Road, Mumbai-400013 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacb6134D "नधा"रती क" ओर से / Assessee By Shri Yogesh A. Thar राज"व क" ओर से / Revenue By Shri N.P.Singh Cit-Dr

Section 43B

…r 2008-09), wherein, vide para 4 to 4.3.6, the issue has been deliberated upon. It is further noted that the Ld. Commissioner of Income Tax (Appeal), while deleting the addition relied upon various decision including Shriram Pistons & Rings Ltd. vs CIT (2008) 307 ITR 363 (Del.), CIT vs Raza Textile Ltd. (2005) 199 CTR (All) 694. Finally, it was held that the ex-gratia payment do not fall within the ambit of section 36(1)(ii) of the Act. Since, the same addition was deleted in Assessment year 2008-09, and no appeal was filed by the Department, being the same amount, it has to be disallowed in the present Assessmen…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal is allowed

ITA 5720/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Jul 2016AY 2007-08

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

For Appellant: S/Shri Ajay Vohra, Sr. Adv. NeerajFor Respondent: Shri Amrendra Kumar, CIT(DR)

…c Chemical Works Co. Ltd. vs. Commissioner of Income Tax, [1989] 177  ITR 377 (SC)  CIT v Shriram Pistons and Rings Limited -CC 12154/2009 (Supreme Court) Shriram Pistons and Rings Limited v. CIT: 219 CTR 228 (Del)  Shriram Pistons and Rings Limited v. CIT 307 ITR 363 (Del)   Shriram Refrigeration Industries Ltd. v. CIT: 127 ITR 746(Del)  Triveni Engineering Works Ltd. v. CIT 136 ITR 340 (Del) CIT vs. Prem Heavy Engineering Works P. Limited (2006) 282 ITR 11 (All.)   CIT v Sharda Motor Industrial Limited: 319 ITR 109 (Del) Climate Systems India Limited v. CIT : 319 ITR 113 (Del.) Shriram Pistons and Rings…

M/S Diffusion Engineers Ltd vs. The Deputy Commissioner of Income Tax

The appeal stands allowed

ITA/1010/2008HC Karnataka17 Apr 2015

Bench: S.SUJATHA,VINEET SARAN

Section 260Section 35Section 35ASection 37Section 37(1)

…expenditure and if it is revenue expenditure, then the provisions of Section 37 shall apply. In support of his contentions, reliance was placed on: (1) CIT vs SWARAJ ENGINES LIMITED – [309 ITR 443 (SC)] (2) CIT vs SHRIRAM PISTONS AND RINGS LTD – [307 ITR 363 (DEL)] (3) CIT vs EMPIRE JUTE CO. LTD – [124 ITR 151(SC)] (4) CIT vs SAYAJI INDUSTRIES LTD. – [81 DTR 418 (GUJ)] (5) CIT vs MOLEX (INDIA) LTD – [344 ITR 156 (KAR)] 7. The learned counsel appearing for the revenue supported the order passed by the Tribunal and relied on the Judgment of the Madras High Court in the case of Commis…

Hcl Ltd vs. The Commissioner of Income-Tax

ITA - 93 / 2002HC Delhi03 Feb 2015
Section 260A

…the same should be treated as royalty and for the reasons as aforesaid, the answer to the question referred should be in the affirmative and in favour of the Revenue.” 32. In Shriram Pistons and Rings Limited versus Commissioner of Income Tax, (2008) 307 ITR 363 (Delhi) a clear distinction was made between outright sale and a right to use and the effect thereof. Reference was made to the decision of the Supreme Court in CIT versus Ciba India Limited, (1968) 69 ITR 692 (SC) to the effect that the technology agreement was to remain in force for a period of five years and there was a provision for ear…

Hcl Limited

ITA/93/2002HC Delhi03 Feb 2015
Section 260A

…the same should be treated as royalty and for the reasons as aforesaid, the answer to the question referred should be in the affirmative and in favour of the Revenue.” 32. In Shriram Pistons and Rings Limited versus Commissioner of Income Tax, (2008) 307 ITR 363 (Delhi) a clear distinction was made between outright sale and a right to use and the effect thereof. Reference was made to the decision of the Supreme Court in CIT versus Ciba India Limited, (1968) 69 ITR 692 (SC) to the effect that the technology agreement was to remain in force for a period of five years and there was a provision for ear…

Commissioner of Income Tax Rajahmundry vs. M/S.B.Krishna Murthy Kakinada and 2 Ors

ITTA/93/2002HC Telangana10 Dec 2013

Bench: CHALLA KODANDA RAM,G.CHANDRAIAH

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

ITA/85/2009HC Delhi06 Sept 2010
Section 143(3)

…ucts and this was more in the nature of information guidance or payment for consultancy. Being of this view, the Bench concurred with the conclusion arrived at by the tribunal. 11. In Shriram Pistons And Rings Ltd. v. Commissioner of Income-Tax, [2008] 307 ITR 363 (Delhi), the Division Bench was dealing with the fact where the assessee had entered into a technical collaboration agreement with a foreign company of Japan for the manufacture of piston rings. The 2010:DHC:4349-DB agreement was in two parts : one, to provide comprehensive technical know- how and the second, dealing with technical assistan…

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

ITA/86/2009HC Delhi06 Sept 2010
Section 143(3)

…ucts and this was more in the nature of information guidance or payment for consultancy. Being of this view, the Bench concurred with the conclusion arrived at by the tribunal. 11. In Shriram Pistons And Rings Ltd. v. Commissioner of Income-Tax, [2008] 307 ITR 363 (Delhi), the Division Bench was dealing with the fact where the assessee had entered into a technical collaboration agreement with a foreign company of Japan for the manufacture of piston rings. The 2010:DHC:4347-DB agreement was in two parts : one, to provide comprehensive technical know- how and the second, dealing with technical assistan…

Commissioner of Income Tax vs. Shriram Pistons & Rings Limited

Appeal is partly allowed, as aforesaid

ITA-815/2007HC Delhi23 Dec 2009
Section 5Section 80Section 80H

…HHC of the Act?” 2. Insofar as the first question is concerned, the same is covered in favour of the assessee by two judgments of jurisdictional case in the case of assessee itself, viz., Shriram Pistons and Rings Ltd. vs. Commissioner of Income Tax [307 ITR 363(Del) and Commissioner of Income Tax vs. Shriram Pistons and Rings Ltd. [220 CTR 404 (Del)]. The view taken therein finds support from the judgment of this Court in the case of Commissioner of Income Tax vs. J.K. Synthetics [309 ITR 371 (Del)]. Insofar as the second question is concerned, this again is covered in favour of the assessee in…

Commissioner of Income Tax vs. Shriram Pistons & Rings Limited

Appeal is partly allowed, as aforesaid

ITA - 815 / 2007HC Delhi23 Dec 2009
Section 5Section 80Section 80H

…HHC of the Act?” 2. Insofar as the first question is concerned, the same is covered in favour of the assessee by two judgments of jurisdictional case in the case of assessee itself, viz., Shriram Pistons and Rings Ltd. vs. Commissioner of Income Tax [307 ITR 363(Del) and Commissioner of Income Tax vs. Shriram Pistons and Rings Ltd. [220 CTR 404 (Del)]. The view taken therein finds support from the judgment of this Court in the case of Commissioner of Income Tax vs. J.K. Synthetics [309 ITR 371 (Del)]. Insofar as the second question is concerned, this again is covered in favour of the assessee in…

Shriram Pistons & Rings Ltd. v. CIT (307 ITR 363) — Cited in 17 Judgments | BharatTax