Technology Resources (Pvt.) Ltd. v. CIT

407 ITR 327High Court2018#6371 most cited

What is Technology Resources (Pvt.) Ltd. v. CIT authority for?

Payments for technical or consultancy services are considered 'fees for included services' and are taxable in India under the DTAA if they involve the transfer of technical knowledge, skill, or process, or the development or transfer of technical plans or designs. However, payments for general management, financial, legal, or public relations services do not qualify.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2019 to 2025.

Also referred to as

Technology Resources Pvt Ltd · 407 ITR 327 · fees for included services · DTAA · India-US DTAA · technical services · consultancy services · taxable in India · transfer of technical knowledge

Also reported as

2018 SCC OnLine KER 3113

Sections most often in play

Section 12(3)Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 153Section 195Section 195(2)

Issues it is cited on

fees for technical servicestransferpersoncompanysection 143(3)india

Judgments citing Technology Resources (Pvt.) Ltd. v. CIT

Adp Private Limited, Hyderabad vs. DCIT., Circle 1(1), Hyderabad

In the result, appeal of the Assessee is partly allowed

ITA 975/HYD/2024[2020-21]Status: DisposedITAT Hyderabad22 Aug 2025AY 2020-21

Bench: Shri Manjunatha G & Shri Ravish Sood

For Appellant: CA, Sriram SeshadriFor Respondent: MS. U Mini Chandran, CIT-DR
Section 143(3)Section 144C(1)Section 144C(5)Section 153Section 195Section 234ASection 40Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH: HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA.No.975/Hyd./2024 Assessment Year 2020-2021 ADP Private Limited, Nanakramguda Village, The Deputy Commissioner Serilingampally Mandal, of Income Tax, Circle-1(1), vs. Ranga Reddy District. Hyderabad – 500 004. Telangana. Telangana. PIN–500 008. PAN AANCA8983A (Appellant) (Respondent) For Assessee : CA, Sriram Seshadri For Revenue : MS. U Mini Chandran, CIT-DR Date of Hearing : 22.07.2025 Date of Pronouncement : 22.08.2025 ORDER PER MANJUNATHA, G. This appeal ha…

Tungsten Automation England Limited (Formerly Known As Tungsten Network Limited) vs. Deputy Commissioner of Income Tax, International Taxation, Circle 3(1)(1), New Delhi

ITA/93/2025HC Delhi14 Jul 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

For Appellant: Mr Deepak Chopra and Ms Priya TandonFor Respondent: Mr Sunil Agarwal, SSC with Mr Shivansh B
Section 142(1)Section 144Section 144C(5)Section 147Section 148Section 148ASection 260A

…to be observed that the services which come under the “included services”, meaning a technical and consultancy service as understood by the DTAA, have further been elaborated in sub-clauses (a) and (b) of paragraph 4 under article 12. We are 10 (2018) 407 ITR 327. Digitally Signed By:GANGA SINGH RAWAT Signing Date:14.07.2025 18:41:49 Signature Not Verified ITA 92/2025 and ITA 93/2025 Page 38 of 49 concerned with sub-clause (b) of article 12(4), which speaks of technical knowledge, experience,…

Tungsten Automation England Limited (Formerly Known As Tungsten Network Limited) vs. Deputy Commissioner of Income Tax, International Taxation, Circle 3(1)(1) New Delhi

ITA/92/2025HC Delhi14 Jul 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

For Appellant: Mr Deepak Chopra and Ms Priya TandonFor Respondent: Mr Sunil Agarwal, SSC with Mr Shivansh B
Section 142(1)Section 144Section 144C(5)Section 147Section 148Section 148ASection 260A

…to be observed that the services which come under the “included services”, meaning a technical and consultancy service as understood by the DTAA, have further been elaborated in sub-clauses (a) and (b) of paragraph 4 under article 12. We are 10 (2018) 407 ITR 327. Digitally Signed By:GANGA SINGH RAWAT Signing Date:14.07.2025 18:41:49 Signature Not Verified ITA 92/2025 and ITA 93/2025 Page 38 of 49 concerned with sub-clause (b) of article 12(4), which speaks of technical knowledge, experience,…

Commissioner of Income Tax International Tax- 1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/202/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

Commissioner of Income Tax (International Taxation-1), New Delhi vs. M/S Expeditors International of Washington Inc

ITA/205/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

The Commissioner of Income Tax (International Tax)-1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/263/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

The Commissioner of Income Tax (International Tax)-1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/248/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

The Commissioner of Income Tax (International Tax)-1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/247/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

The Commissioner of Income Tax (International Tax)-1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/246/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

The Commissioner of Income Tax (International Tax)-1 New Delhi vs. M/S Expeditors International of Washington Inc

ITA/249/2022HC Delhi13 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

…n test of rendering services and making technical knowledge available at the same time is satisfied.” 91. Of equal significance are the observations of the Kerala High Court in US Technology Resources [US Technology Resources (Pvt.) Ltd. v. CIT, (2018) 407 ITR 327 (Ker); 2018 SCC OnLine Ker 3113.] when their Lordships laid emphasis on the transfer of Digitally Signed By:KAMLESH KUMAR Signing Date:17.02.2025 14:23:05 Signature Not Verified ITA 202/2022 & Connected Matters Page 18 of 22 technol…

Isys Softech Private Limited, Jaipur vs. CIT (A), Jaipur

In the result, appeal of the assessee is allowed

ITA 528/JPR/2023[2011-12]Status: DisposedITAT Jaipur22 Nov 2023AY 2011-12

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. G. M. MehtaFor Respondent: Smt. Monisha Choudhary (Addl. CIT)
Section 143(3)Section 195Section 195(1)Section 271CSection 40Section 9(1)(vi)

…art. 26(3) of DTAA between India and USA. Sec. 40(a)(i) is discriminatory and therefore, not applicable in terms of article 26(3) of Indo US DTAA. Tribunal was correct in allowing deduction.(PB P.43 to 54) (2) US Technology Resources Pvt. Ltd. Vs. CIT (2018) 407 ITR 327 (Ker): India and USA. Non-resident- Income deemed to accrue or arise in India. DTAA more beneficial than Income tax Act. Fee for included services would be taxable in India. Meaning of included services. Transfer of technical knowledge, experience, skill, know-how or process or consists of development or transfer of technical plan or design. Paym…

Spi Global Us Inc, Puducherry vs. ACIT, Circle-3(1)(2), International Taxation, New Delhi

In the result, appeal of the assessee is allowed

ITA 1662/DEL/2022[2019-20]Status: DisposedITAT Delhi07 Jul 2023AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2019-20

For Appellant: Shri Ashik Shah, AdvocateFor Respondent: Shri Vizay Vasanta, CIT- DR
Section 143(3)

…dently in future without recourse or assistance of the service provider: i) Guy Carpenter & Co Ltd. High Court, Delhi 346 1TR 504 ii) De Beers India Minerals (P) Ltd. High Court, Karnataka 346 ITR 467 iii) US Technology Resources (P.) Ltd. High Court, Kerala 407 ITR 327 iv) Everest Global Inc. Tribunal, Delhi 194 ITD 729 v) Inter Continental Hotels Group (Asia Pacific) (Pte.) Ltd. Tribunal, Delhi 148 taxmann.com 27 vi) CPP Assistance Services (P.) Ltd Tribunal, Delhi 147 taxmann.com 484 vii) Mahindra and Mahindra Ltd Tribunal, Mumbai (Special Bench) 30 SOT 374 5.2 The Ld. AR further submitted that SPi India had…

Bio-Rad Laboratories Inc., Gurgaon vs. ACIT Int. Taxation, Circle-1(1)(2)

In the result, the appeals of the assessee in ITA Nos

ITA 996/DEL/2022[2019-20]Status: DisposedITAT Delhi30 Dec 2022AY 2019-20

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar

For Appellant: Shri K.M. Gupta, AdvFor Respondent: Shri Gangadhar Panda, CIT-DR
Section 143(3)

…e position the provision of services by the assessee to its affiliate in India are in the nature of FIS under India-US DTAA and are liable to taxation in India” 19. We find that the Hon'ble High Court of Kerala in the case of US Technology Resources Pvt Ltd 407 ITR 327 had the occasion to consider the fees for included services as defined under clause (iv) of Article 12 as per the DTAA. The relevant findings read as under: “11. The fees for included services is defined under Clause 4 of Article 12 as per the DTAA, which is extracted hereunder: '4. For purposes of this article, "fees for included services" mea…

Bio-Rad Laboratories Inc., Haryana vs. ACIT International Taxation Circle-1(1)(2), Circle-1(1)(2)

In the result, the appeals of the assessee in ITA Nos

ITA 994/DEL/2022[2018-19]Status: DisposedITAT Delhi30 Dec 2022AY 2018-19

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar

For Appellant: Shri K.M. Gupta, AdvFor Respondent: Shri Gangadhar Panda, CIT-DR
Section 143(3)

…e position the provision of services by the assessee to its affiliate in India are in the nature of FIS under India-US DTAA and are liable to taxation in India” 19. We find that the Hon'ble High Court of Kerala in the case of US Technology Resources Pvt Ltd 407 ITR 327 had the occasion to consider the fees for included services as defined under clause (iv) of Article 12 as per the DTAA. The relevant findings read as under: “11. The fees for included services is defined under Clause 4 of Article 12 as per the DTAA, which is extracted hereunder: '4. For purposes of this article, "fees for included services" mea…

The Pr. Commissioner of Income Tax-2 vs. M/s. GJ Trading Pvt Ltd

ITTA/246/2022HC Telangana05 Sept 2022

Bench: C.V. BHASKAR REDDY,UJJAL BHUYAN

M/S. Device Driven (India) Pvt. Ltd vs. The Commissioner of Income Tax

ITA/257/2014HC Kerala13 Oct 2020

Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN,HONOURABLE MR. JUSTICE T.R.RAVI

Section 10ASection 10BSection 143(1)Section 195Section 40Section 9(1)(vii)

…located, absolves the entire liability to income tax in India. To further the contention of the payment not being a part of the technical services as per the DTAA, a Division Bench judgment of this Court in US Technology Resources (Pvt.) Ltd. v. CIT [(2018) 407 ITR 327 (Ker)] is relied on. To advance the case of no liability under the DTAA, the decision in C.I.T. v. P.V.A.L. Kulandagan Chettiar [(2004) 267 ITR 654 (SC)] has also been relied on. 6. Sri.P.K.Ravindranatha Menon, learned Senior Counsel appearing for the respondent, would specifically I.T.A.No.257 of 2014 - 7 - refer to the Explan…

H.J. Heinz Company, Usa, Mumbai vs. ACIT, New Delhi

The appeals of the assessee are partly allowed for statistical purposes

ITA 1991/DEL/2015[2011-12]Status: DisposedITAT Delhi23 Aug 2019AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kambleh. J. Heinz Company, Usa Vs Adit 7Th Floor, D-Shivsagar Estate, Circle-1(2) Dr. Annie Besant Road, Worli International Taxation Mumabi New Delhi Aacch2144P (Respondent) (Appellant) H. J. Heinz Company, Usa Vs Acit 7Th Floor, D-Shivsagar Estate, Circle-2(1)(1), Dr. Annie Besant Road, Worli International Taxation, Mumabi Room No. 410, 4Th Floor, E- Aacch2144P Z Block, Pratyaksh Kar (Appellant) Bhawan New Delhi (Respondent)

Section 143(3)Section 144C(13)Section 234BSection 271Section 271(1)(c)Section 9(1)(vi)Section 9(1)(vii)

…vice provider in the future. The aforesaid principle has also been upheld in the following decisions wherein the concept of ‘making available’ has been discussed in detail and the issue is ruled in favour of the tax payers. i) US Technology Resources (P) Ltd. 407 ITR 327 ii) Guy Carpenter & Co. 346 ITR 504 (Del HC) iii) De Beers India Minerals (P) Ltd. 346 ITR 467 iv) Raymond Ltd. 86 ITD 791 v) Koninklijke Philips Electronics Pvt. N. V. (2018) 99 taxmann.com 23 vi) Exxon Mobil Company India (P) Ltd. (2018) 92 taxmann.com 5 vii) Bombardier Transportation India (P) Ltd. 162 ITD 586 viii) Timken Company (2017) 88 ta…

H.J. Heinz Company, Usa, Mumbai vs. ADIT, New Delhi

The appeals of the assessee are partly allowed for statistical purposes

ITA 6252/DEL/2012[2009-10]Status: DisposedITAT Delhi23 Aug 2019AY 2009-10

Bench: Shri R. K. Panda & Ms Suchitra Kambleh. J. Heinz Company, Usa Vs Adit 7Th Floor, D-Shivsagar Estate, Circle-1(2) Dr. Annie Besant Road, Worli International Taxation Mumabi New Delhi Aacch2144P (Respondent) (Appellant) H. J. Heinz Company, Usa Vs Acit 7Th Floor, D-Shivsagar Estate, Circle-2(1)(1), Dr. Annie Besant Road, Worli International Taxation, Mumabi Room No. 410, 4Th Floor, E- Aacch2144P Z Block, Pratyaksh Kar (Appellant) Bhawan New Delhi (Respondent)

Section 143(3)Section 144C(13)Section 234BSection 271Section 271(1)(c)Section 9(1)(vi)Section 9(1)(vii)

…vice provider in the future. The aforesaid principle has also been upheld in the following decisions wherein the concept of ‘making available’ has been discussed in detail and the issue is ruled in favour of the tax payers. i) US Technology Resources (P) Ltd. 407 ITR 327 ii) Guy Carpenter & Co. 346 ITR 504 (Del HC) iii) De Beers India Minerals (P) Ltd. 346 ITR 467 iv) Raymond Ltd. 86 ITD 791 v) Koninklijke Philips Electronics Pvt. N. V. (2018) 99 taxmann.com 23 vi) Exxon Mobil Company India (P) Ltd. (2018) 92 taxmann.com 5 vii) Bombardier Transportation India (P) Ltd. 162 ITD 586 viii) Timken Company (2017) 88 ta…

Technology Resources (Pvt.) Ltd. v. CIT (407 ITR 327) — Cited in 18 Judgments | BharatTax