Skycell Communications Ltd. v. DCIT

251 ITR 53High Court2001#336 most cited

What is Skycell Communications Ltd. v. DCIT authority for?

Technical services involve human intervention and expertise, not just routine or machine-based operations. Routine customer support and standard facility provision through technology do not constitute technical services under the Act.

253

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2007 to 2026.

Also referred to as

Skycell Communications Ltd. v. DCIT · 251 ITR 53 · technical services · fees for technical services · section 9(1)(vii) · human intervention · routine services · managerial services · consultancy services

Sections most often in play

Section 9(1)(vii)Section 195Section 90(2)Section 115JBSection 37Section 40(a)(i)Section 143(3)Section 234B

Issues it is cited on

section 194jsection 9(1)(vi)section 9(1)(vii)section 90(2)fees for technical servicessection 194hsection 9(1)section 40(a)(i)section 195section 194permanent establishmentsection 201

Judgments citing Skycell Communications Ltd. v. DCIT

Ciena Communications India Pvt. Ltd., New Delhi vs. ACIT, Circle- 6(1), New Delhi

In the result grounds raised by assessee for the year under consideration stands allowed

ITA 3563/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Sept 2018AY 2014-15

Bench: Sri R.K.Panda & Smt. Beena A Pillai

For Appellant: Shri Vishal Kalra, AdvFor Respondent: Shri Surender Pal, Sr. D.R
Section 234DSection 244ASection 250(6)Section 253(1)(a)Section 40

…Page 7 of 17 ITA Nos. 3561, 3562 and 3563/Del/2018 A.Y. 2012-13, 2013-14 & 2014-15 Ciena Communications India Pvt. Ltd. vs. ACIT, Circle-6(1), N.D. • Decision of Hon’ble Madras High Court in the case of Skycell Communications Ltd vs. DCIT reported in (2001) 251 ITR 53; • Decision of Pune ITAT bench in the case of Sandvik Australia Pty. Ltd., vs. DDIT reported in (2013) 31 Taxmann.com 256; • Decision of Hyderabad ITAT in the case of ADIT vs. BHEL-GE- Gas Turbine Servicing Pvt. Ltd. reported in (2012) 24 taxman.com 25. 5.4. Ld.Counsel submitted that TDS could be deducted on any payment made to a non-resident only…

Ciena Communications India Pvt. Ltd., New Delhi vs. ACIT, Circle- 6(1), New Delhi

In the result grounds raised by assessee for the year under consideration stands allowed

ITA 3562/DEL/2018[2013-14]Status: DisposedITAT Delhi27 Sept 2018AY 2013-14

Bench: Sri R.K.Panda & Smt. Beena A Pillai

For Appellant: Shri Vishal Kalra, AdvFor Respondent: Shri Surender Pal, Sr. D.R
Section 234DSection 244ASection 250(6)Section 253(1)(a)Section 40

…Page 7 of 17 ITA Nos. 3561, 3562 and 3563/Del/2018 A.Y. 2012-13, 2013-14 & 2014-15 Ciena Communications India Pvt. Ltd. vs. ACIT, Circle-6(1), N.D. • Decision of Hon’ble Madras High Court in the case of Skycell Communications Ltd vs. DCIT reported in (2001) 251 ITR 53; • Decision of Pune ITAT bench in the case of Sandvik Australia Pty. Ltd., vs. DDIT reported in (2013) 31 Taxmann.com 256; • Decision of Hyderabad ITAT in the case of ADIT vs. BHEL-GE- Gas Turbine Servicing Pvt. Ltd. reported in (2012) 24 taxman.com 25. 5.4. Ld.Counsel submitted that TDS could be deducted on any payment made to a non-resident only…

Ciena Communications India Pvt. Ltd., New Delhi vs. ACIT, Circle- 6(1), New Delhi

In the result grounds raised by assessee for the year under consideration stands allowed

ITA 3561/DEL/2018[2012-13]Status: DisposedITAT Delhi27 Sept 2018AY 2012-13

Bench: Sri R.K.Panda & Smt. Beena A Pillai

For Appellant: Shri Vishal Kalra, AdvFor Respondent: Shri Surender Pal, Sr. D.R
Section 234DSection 244ASection 250(6)Section 253(1)(a)Section 40

…Page 7 of 17 ITA Nos. 3561, 3562 and 3563/Del/2018 A.Y. 2012-13, 2013-14 & 2014-15 Ciena Communications India Pvt. Ltd. vs. ACIT, Circle-6(1), N.D. • Decision of Hon’ble Madras High Court in the case of Skycell Communications Ltd vs. DCIT reported in (2001) 251 ITR 53; • Decision of Pune ITAT bench in the case of Sandvik Australia Pty. Ltd., vs. DDIT reported in (2013) 31 Taxmann.com 256; • Decision of Hyderabad ITAT in the case of ADIT vs. BHEL-GE- Gas Turbine Servicing Pvt. Ltd. reported in (2012) 24 taxman.com 25. 5.4. Ld.Counsel submitted that TDS could be deducted on any payment made to a non-resident only…

DCIT, Circle-11(1), Kolkata vs. M/S All India Technologies Ltd., Kolkata

Appeal is dismissed

ITA 52/KOL/2017[2009-10]Status: DisposedITAT Kolkata11 Jul 2018AY 2009-10

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2009-10

Section 143(3)Section 32Section 32(1)Section 32(2)Section 40

…ii), which comprises managerial, technical or consultancy services, but excluding payments for construction, assembly, mining or like products and what is assessable under the head "Salaries". The High Court in Skycell Communications Ltd. v. Deputy CIT [2001] 251 ITR 53 (Mad) found that the provision of cellular mobile telephone facility to subscribers cannot be treated as technical service and that it does not fall under any other listed services nor has it been notified. Merely because the service is linked to science and technology as are found in most of the gadgets now in use in everyday life, every such ins…

Nunhems India Private Limited, Hyderabad vs. Asst.CIT, Circle 16(1)

In the result, the assessee’s appeal for the A

ITA 1775/HYD/2013[2009-10]Status: DisposedITAT Hyderabad05 Jul 2018AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri Nageswar RaoFor Respondent: Smt. Suman Malik
Section 143(1)Section 143(3)Section 194JSection 195Section 40Section 43B

…Solutions (P) Ltd reported in (2015) 61 Taxmann.com 235 (Bang.Trib); ii) ITAT at Delhi in the case of Bharti Airtel Ltd reported in (2016) 67 Taxmann.com 223 (Delhi Trib.); iii) Hon'ble Madras High Court in the case of Skycell Communications Ltd, reported in 251 ITR 53 (Mad.) iv) Hon'ble Supreme Court in the case of Kotak Securities reported in 67 Taxmann.com 336; v) ITAT at Pune in the case of T-3 Enetry Services Pvt Ltd reported in 91 Taxmann.com 334; and vi) ITAT at Delhi in the case of Vodafone Essar Digilink in ITA No.1950/Del/2014. 7.2 The learned DR, on the other hand, submitted that the payment made to N…

Nunhems India Private Limited, R.R.Dist vs. JCIT, Range 16, Hyderabad

In the result, the assessee’s appeal for the A

ITA 327/HYD/2012[2008-2009]Status: DisposedITAT Hyderabad05 Jul 2018AY 2008-2009

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri Nageswar RaoFor Respondent: Smt. Suman Malik
Section 143(1)Section 143(3)Section 194JSection 195Section 40Section 43B

…Solutions (P) Ltd reported in (2015) 61 Taxmann.com 235 (Bang.Trib); ii) ITAT at Delhi in the case of Bharti Airtel Ltd reported in (2016) 67 Taxmann.com 223 (Delhi Trib.); iii) Hon'ble Madras High Court in the case of Skycell Communications Ltd, reported in 251 ITR 53 (Mad.) iv) Hon'ble Supreme Court in the case of Kotak Securities reported in 67 Taxmann.com 336; v) ITAT at Pune in the case of T-3 Enetry Services Pvt Ltd reported in 91 Taxmann.com 334; and vi) ITAT at Delhi in the case of Vodafone Essar Digilink in ITA No.1950/Del/2014. 7.2 The learned DR, on the other hand, submitted that the payment made to N…

Nunhems India Pvt.Ltd., R.R.Dist vs. Addl.CIT, Range-16, Hyderabad

In the result, the assessee’s appeal for the A

ITA 290/HYD/2011[2006-07]Status: DisposedITAT Hyderabad05 Jul 2018AY 2006-07

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri Nageswar RaoFor Respondent: Smt. Suman Malik
Section 143(1)Section 143(3)Section 194JSection 195Section 40Section 43B

…Solutions (P) Ltd reported in (2015) 61 Taxmann.com 235 (Bang.Trib); ii) ITAT at Delhi in the case of Bharti Airtel Ltd reported in (2016) 67 Taxmann.com 223 (Delhi Trib.); iii) Hon'ble Madras High Court in the case of Skycell Communications Ltd, reported in 251 ITR 53 (Mad.) iv) Hon'ble Supreme Court in the case of Kotak Securities reported in 67 Taxmann.com 336; v) ITAT at Pune in the case of T-3 Enetry Services Pvt Ltd reported in 91 Taxmann.com 334; and vi) ITAT at Delhi in the case of Vodafone Essar Digilink in ITA No.1950/Del/2014. 7.2 The learned DR, on the other hand, submitted that the payment made to N…

DCIT (TDS), Chandigahr vs. M/S Idea Cellular Ltd., Mohali

In the result, the appeals of the Revenue are dismissed

ITA 21/CHANDI/2018[2005-06]Status: DisposedITAT Chandigarh28 Jun 2018AY 2005-06

Bench: Ms. Diva Singh & Ms. Annapurna Gupta

For Appellant: Smt. Chanderkanta, Addl. CITFor Respondent: Shri Ronak G. Doshi, CA
Section 201(1)

…the decisions referred to in the impugned order, it was submitted, are compiled and are available in the Paper Book filed. Reliance was placed upon these decisions. The list of cases indexed is extracted hereunder : 1 Skycell Communications Limited Vs. DCIT (251 ITR 53) (Mad.) 2 CIT vs. Bharti cellular and others (175 taxman 573) (Del. HC) ITA 21 to 24/CHD/2018 Page 2 of 7 3 CIT vs. Bharti cellular (193 Taxman 97) (SC) 4 CIT v Vodafone South Ltd. (241 Taxman 497) (Ear.) 5 Appellant's own case (ITA No. 94-96/JP/2013 and 917/JP/2012 order dated July 24, 2015)(TJaipur) 6 Appellant's own case before Hon'ble Rajast…

Hero Motocorp Ltd., New Delhi vs. Addl.CIT, Range-11, New Delhi

In the result ground No

ITA 6990/DEL/2017[2013-14]Status: DisposedITAT Delhi20 Jun 2018AY 2013-14

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A. No. 6990/Del/2017 (A.Y 2013-14)

Section 143(3)Section 144C

…dence. Thus, managerial service essentially involves controlling, directing or administering the business.” “18. It would be incongruous to hold that the non-resident was providing technical services. To quote from Skycell Communications Ltd. v. Dy CIT [2001] 251 ITR 53/119 Taxman 496 (Mad), the word 'technical' has been interpreted in the following manner:— 'Thus while stating that "technical service" would include managerial and consultancy service, the Legislature has not set out with precision as to what would constitute "technical" service to render it "technical service". The meaning of the word "technical"…

Hero Motocorp Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal No. 2424/Del/ 2015 filed by the revenue in assessment year 2010-11 is partly allowed

ITA 1616/DEL/2017[2012-13]Status: DisposedITAT Delhi13 Jun 2018AY 2012-13

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 143(3)Section 144CSection 92C

…dence. Thus, managerial service essentially involves controlling, directing or administering the business.” “18. It would be incongruous to hold that the non-resident was providing technical services. To quote from Skycell Communications Ltd. v. Dy CIT [2001] 251 ITR 53/119 Taxman 496 (Mad), the word 'technical' has been interpreted in the following manner:— 'Thus while stating that "technical service" would include managerial and consultancy service, the Legislature has not set out with precision as to what would constitute "technical" service to render it "technical service". The meaning of the word "technical"…

Alkyl Amines Chemicals Ltd, Navi Mumbai vs. DCIT (Itds) 1(1), Mumbai

In the result both the appeals filed by the assessee are allowed

ITA 7440/MUM/2014[2007-08]Status: DisposedITAT Mumbai24 Apr 2018AY 2007-08

Bench: Shri G.S. Pannu & Shri Pawan Singh

For Appellant: Shri Divyesh I. Shah (AR)For Respondent: Shri Rajesh Kumar Yadav (DR)
Section 133Section 194Section 194ISection 194JSection 201Section 201(1)Section 253Section 254(1)Section 9(1)(vi)

…IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “A”, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No.7441/Mum/2014 (Assessment Year- 2008-09) Alkyl Amines Chemicals Ltd. DCIT (TDS) 1(1) Mumbai. 401-402, Nirman Vypar Kendra, Vs. Plot No. 10, Sector 17, Vashi, Navi Mumbai-400703 PAN:AAACA6783F (Appellant) (Respondent) Assessee by : Shri Divyesh I. Shah (AR) Revenue by : Shri Rajesh Kumar Yadav (DR). Date of hearing : 24.04.2018 Date of Pronouncement : 24.04.2018 Order Under Section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeal by asse…

Fractal Analytics P.Ltd, Mumbai vs. DCIT 8(1), Mumbai

ITA 3511/MUM/2015[2008-09]Status: DisposedITAT Mumbai01 Mar 2018AY 2008-09
For Appellant: S/Shri Neeraj Sheth/Prashant Maheshwari & Ms.Kirti DadlaniFor Respondent: Shri M.V. Rajguru-Sr.DR
Section 143(3)Section 148Section 254(1)Section 40Section 9Section 9(1)(vii)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “एल मुंबई एल एल” ” ” ” खंडपीठ एल खंडपीठ खंडपीठ खंडपीठ IN THE INCOME TAX APPELLATE TRIBUNAL “L” BENCH, MUMBAI सव"ी राजे"" सव"ी राजे"", लेखा सद"य लेखा सद"य एवं एवं संदीप संदीप गोसांई गोसांई ,"याियक सद"य "याियक सद"य सव"ी सव"ी राजे"" राजे"" लेखा सद"य लेखा सद"य एवं एवं संदीप संदीप गोसांई गोसांई "याियक सद"य "याियक सद"य Before S/Shri Rajendra, A.M. and Sandeep Gosain,J.M. आयकर अपील सं आयकर अपील सं././././ITA No. 3511/Mum/2015,िनधा"रण व आयकर अपील सं आयकर अपील सं िनधा"रण व िनधा"रण वष"ष"ष"ष" /Assessment Year: 2008-09 िनधा"रण व Fra…

Vodafone Digilink Limited, Jaipur vs. ITO, Jaipur

In the result, appeal of the assessee is allowed

ITA 67/JPR/2015[2011-12]Status: DisposedITAT Jaipur28 Feb 2018AY 2011-12
For Appellant: Ms. Ishita Farsaiya (Adv.)For Respondent: Shri Varinder Mehta (CIT)
Section 191Section 194HSection 201Section 201(1)

…ces as contemplated under Explanation 2 to Section 9(1)(vii) of the Act and not liable for tax deduction at source U/s 194J of the Act. This view has been earlier held by the Hon’ble Madras High Court in the case of Skycell Communications Ltd. Vs. DCIT (2001) 251 ITR 53 (Mad) order dated 23/2/2001 wherein the Hon’ble High Court has held that provisions of Cellular mobile telephone facility to subscribe is not a technical service. Deduction of tax at source need not to be made from subscriptions U/s 194J of the Act. He further relied on the decision in the case of Jaipur Vidyut Vitran Limited Vs. DCIT (2009) 123 T…

Vodafone Mobile Services Ltd., New Delhi vs. ITO, Karnal

In the result, all the 03 Appeals i

ITA 718/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Nov 2017AY 2009-10

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Vodafone Mobile Services Ltd., New Delhi vs. ITO, Karnal

In the result, all the 03 Appeals i

ITA 717/DEL/2017[2008-09]Status: DisposedITAT Delhi07 Nov 2017AY 2008-09

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Vodafone Mobile Services Ltd., New Delhi vs. ITO, Karnal

In the result, all the 03 Appeals i

ITA 716/DEL/2017[2007-08]Status: DisposedITAT Delhi07 Nov 2017AY 2007-08

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Sh. Vodafone Digilink Ltd., Karnal vs. CIT (TDS), Chandigarh

In the result, all the 03 Appeals i

ITA 3781/DEL/2013[2009-10 (F.Y. 2008-09)]Status: DisposedITAT Delhi07 Nov 2017

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Sh. Vodafone Digilink Ltd., Karnal vs. CIT (TDS), Chandigarh

In the result, all the 03 Appeals i

ITA 3780/DEL/2013[2008-09 (F.Y. 2007- 08)]Status: DisposedITAT Delhi07 Nov 2017

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Sh. Vodafone Digilink Ltd., Karnal vs. CIT (TDS), Chandigarh

In the result, all the 03 Appeals i

ITA 3779/DEL/2013[2007-08 (F.Y. 2006-07)]Status: DisposedITAT Delhi07 Nov 2017

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Salil Kapoor & Ms. Ananya KapoorFor Respondent: Sh. S.S. Rana, CIT(DR)
Section 194JSection 201Section 201(3)Section 250(6)Section 263

…able its subscribes to make/receives calls when the subscribers are roaming) in consideration for payment of appropriate charges. Reliance in this regard is placed on the decision of the Hon'ble Madras High Court in the case of Skycell Communications Vs DCIT 251 ITR 53, wherein it has been held as under: "Technical service referred in section 9(1) (vii) contemplates rendering of a "service" to the payer of the fee. Mere collection of a "for use of a standard facility provided to all those willing to pay for it does not amount to the fee having been received for technical services." The Hon'ble High Court thus…

Vodafone Mobile Services Limited, Coimbatore vs. DCIT, Coimbatore

In the result, all the appeal filed by the assessee are partly allowed for statistical purposes

ITA 755/CHNY/2017[2014-15]Status: DisposedITAT Chennai21 Sept 2017AY 2014-15

Bench: Shri A. Mohan Alankamony & Shri Duvvuru Rl Reddy

For Appellant: Shri Salil Kapoor, Advocate
Section 131Section 133ASection 194HSection 201Section 201(1)

…आयकर अपील"य अ"धकरण, “डी” "यायपीठ, चे"नई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ी ए. मोहन अलंकामणी, लेखा सद"य एवं "ी धु"वु" आर.एल रे"डी, "या"यक सद"य के सम" Before Shri A. Mohan Alankamony, Accountant Member & Shri Duvvuru RL Reddy, Judicial Member I.T.A. Nos. 2804 & 1644/Mds/2014 & 376 & 377/Mds/2015 Assessment Years: 2011-12, 2010-11, 2013-14 & 2014-15 M/s. Vodafone Cellular Limited, The Deputy Commissioner of [Formerly Vodafone Essar Cellular Ltd.] Vs. Income Tax, 1045-1046, Avinashi Road, TDS Circle, Coimbatore 641 018, Tamil Nadu. Coimbatore. [PAN: AAACB8614L] (अपीलाथ" /Appellant) (""यथ"/Resp…