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“Section 9(1)(i)”

Section References (mined)Section 9Section 9(1)(i)279 judgments

The decision most relied on for Section 9(1)(i) is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 judgments on BharatTax.

Leading authorities on Section 9(1)(i)

Engineering Analysis Centre of Excellence (P) Ltd. v. CIT
432 ITR 471 · 2021 · Supreme Court
914
citing judgments

Payments for the supply or use of computer software, where there is no transfer of copyright but only a right to use the copyrighted product, are generally considered business profits and not 'royalty' or 'fees for technical services' under the Income Tax Act, 1961 or relevant DTAAs. This principle also applies to transponder fees, which are not taxable as royalty.

CIT v. Samsung Electronics Ltd.
345 ITR 494 · 2012 · High Court
461
citing judgments

Payments by Indian residents to non-resident foreign software suppliers for software are considered royalty, constituting income deemed to accrue in India under section 9(1)(v), thereby requiring tax deduction at source under section 195.

Ishikawajima Harima Heavy Industries Ltd. v. DIT
288 ITR 408 · 2007 · Supreme Court
394
citing judgments

Income from offshore supply of goods and services is not taxable in India if the entire transaction, including transfer of ownership and payments, occurs outside India.

CIT v. De Beers India Minerals (P.) Ltd.
346 ITR 467 · 2012 · High Court
371
citing judgments

For fees for technical or consultancy services to 'make available' technical knowledge or know-how under a DTAA, the service must transmit such knowledge, allowing the recipient to derive an enduring benefit and utilize it independently in the future.

Asia Satellite Telecommunications Co. Ltd. v. DIT
332 ITR 340 · 2011 · High Court
359
citing judgments

Payments for the use of equipment, such as satellite transponders, do not constitute 'royalty' under Section 9(1)(vi) of the Income-tax Act, 1961, or under applicable tax treaties, especially when there is no transfer of the right to use a process or underlying technology.

DIT v. New Skies Satellite BV
382 ITR 114 · 2016 · High Court
325
citing judgments

An amendment to the Income Tax Act, such as the Finance Act, 2012 amendment to Section 9(1)(vi) defining royalty, does not automatically override or alter the definition of 'royalty' as provided in a Double Taxation Avoidance Agreement (DTAA) unless the DTAA itself is bilaterally amended. The definition of royalty in a DTAA remains unaffected by unilateral changes to domestic law.

DIT v. Nokia Networks OY
358 ITR 259 · 2013 · High Court
276
citing judgments

Payments for the supply of software along with telecom equipment are not in the nature of royalty if they are for the use of a copyrighted article, not the copyright itself. Such payments are not taxable in India in the absence of a Permanent Establishment (PE).

CIT v. Toshoku Ltd.
125 ITR 525 · 1980 · Supreme Court
270
citing judgments

A non-resident commission agent is not chargeable to tax in India on commission income if no business operations are carried out in India. Consequently, no TDS is required under Section 195 on such payments.

Judgments citing Section 9(1)(i)

DCIT, C-1(1), Chandigarh vs. M/S Stylam Industries Ltd., Chandigarh

In the result, the Department’s appeal in for assessment year

ITA 389/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh04 Sept 2024AY 2014-15

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

assessee are unacceptable. 2.8 The provisions of section 195 has to be read in consonance with the provisions of section 5(2) and section 9(1) of the Act which deals with the 'total income of non-resident' and 'income deemed to accrue or arise in India', respectively ... arise in India, and is taxable under the Act in view of the specific provision of section 5(2)(b) read with section 9(1 )(i) of the Act. The provision of section 1 95 would apply, and the rate of tax will be as provided as under the Finance

M/S Stylam Industries Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, the Department’s appeal in for assessment year

ITA 960/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh04 Sept 2024AY 2013-14

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

assessee are unacceptable. 2.8 The provisions of section 195 has to be read in consonance with the provisions of section 5(2) and section 9(1) of the Act which deals with the 'total income of non-resident' and 'income deemed to accrue or arise in India', respectively ... arise in India, and is taxable under the Act in view of the specific provision of section 5(2)(b) read with section 9(1 )(i) of the Act. The provision of section 1 95 would apply, and the rate of tax will be as provided as under the Finance

DCIT, C-1(1), Chandigarh vs. M/S Stylam Industries Ltd., Chandigarh

In the result, the Department’s appeal in for assessment year

ITA 1033/CHANDI/2017[2013-14]Status: DisposedITAT Chandigarh04 Sept 2024AY 2013-14

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Vineet Krishan, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr.DR
Section 14ASection 195Section 40Section 40ASection 5(2)Section 6Section 9(1)

assessee are unacceptable. 2.8 The provisions of section 195 has to be read in consonance with the provisions of section 5(2) and section 9(1) of the Act which deals with the 'total income of non-resident' and 'income deemed to accrue or arise in India', respectively ... arise in India, and is taxable under the Act in view of the specific provision of section 5(2)(b) read with section 9(1 )(i) of the Act. The provision of section 1 95 would apply, and the rate of tax will be as provided as under the Finance

ACIT, New Delhi vs. Shri Bhawan Mohan Garg, New Delhi

In the result, the appeal of the revenue is dismissed

ITA 2624/DEL/2017[2011-12]Status: DisposedITAT Delhi13 Aug 2024AY 2011-12

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumarassessment Year: 2011-12 Acit Vs Bhawan Mohan Garg Circle – 32 (1) C-16, Green Park New Delhi Extension, New Delhi Pan No.Aahpg2084K (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 145Section 195Section 40Section 40t

been able to place on record any material to prove the existence of such PE in India. Therefore, the provisions of section 9(1)(i) of the Act are not applicable in this case. As far as fees for technical services is concern, the appellant has contended that its case ... appellant. In view of these facts, I am of the opinion that the case of appellant is not covered by the provisions of Section 9(1)(vii) of the Act either. Therefore, the addition mad by the AO is deleted and the ground of appeal is allowed. 8. We have

Intas Biopharmaceuticals Ltd., Ahmedabad vs. The Dy.Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

In the result, appeal preferred by the assessee is allowed in part

ITA 865/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad07 Aug 2024AY 2011-12

Bench: Ms. Suchitra Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. No. 865/Ahd/2016 (िनधा"रण वष" िनधा"रण वष" / Assessment Year : 2011-12) िनधा"रण वष" िनधा"रण वष" Intas The Dy. Commissioner Of बनाम बनाम/ बनाम बनाम Biopharmaceuticals Ltd. Income Tax Vs. Plot 423/P/A, Sarkhej Circle-2(1)(1), Ahmedabad Bavla Highway, Moraiya, Sanand, Ahmedabad, Gujarat, 382213 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabci4722M (Appellant) .. (Respondent) Shri Bandish Soparkar & Shri Parin अपीलाथ" ओर से /Appellant By : Shah, Ars. ""यथ" क" ओर से/Respondent By : Dr. Darsi Suman Ratnam, Cit. Dr & Shri Ashish Rajesh Revar, Sr. Dr Date Of Hearing 24/07/2024 Date Of Pronouncement 07/08/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: This Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income-Tax (Appeals)-7, Ahmedabad (In Short ‘The Cit(A)’) Dated 20.01.2016 For The Assessment Year 2011-12. Ita No. 865/Ahd/2016 [Intas Biopharmaceuticals Ltd. Vs. Dcit] A.Y. 2011-12 - 2 –

For Appellant: Shah, ARsFor Respondent: Dr. Darsi Suman Ratnam, CIT. DR
Section 143(3)Section 35Section 40

income of the non-residents was in India and, therefore, their income was deemed to be accrued or arisen in India under Section 9(1)(i) of the Act. Accordingly, he rejected the contention of the assessee and disallowed the commission paid to the non-resident under Section

Itochu Corporation, Japan vs. ACIT (International Taxation), Circle-2(1)(1), New Delhi

The appeal is allowed

ITA 760/DEL/2021[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

Bench: Shri Gs Pannu & Shri Anubhav Sharma

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT( DR)
Section 143(2)Section 143(3)Section 144C

creating a business connection in India, much less a PE in India. Reliance in this regard was placed on Explanation 1(b) of section 9(1)(i) of the Income Tax Act, 1961 which states as under:"in the case of a non-resident, no income shall be deemed

Hyundai Transys Inc, Republic of Korea vs. Deputy Commissioner of Income Tax, International Tax, Corporate Circle 1(1), Chennai

Appeal of the assessee is allowed

ITA 338/CHNY/2024[2015-16]Status: DisposedITAT Chennai22 Jul 2024AY 2015-16

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.338/Chny/2024 (िनधा"रणवष" / Assessment Year: 2015-2016) Hyundai Transys Inc, Vs. The Deputy Commissioner Of 105, Sindang Income Tax, 1 Ro Seongyeon, International Tax, Myeon, Corporate Circle 1(1) Seosan, Ccn 356851 Chennai. Korea.

For Appellant: Shri. R. Sivaraman, AdvocateFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT
Section 143(3)Section 144C(5)Section 195Section 5Section 5(2)Section 9Section 9(1)(i)

amounting to INR 3,908,249 accrues and arises in India and is liable to tax in India under section 5(2) r.w.s section 9(1)(i) of the Act at the rate of 40 percent plus applicable surcharge and cess. 2.2. The Ld. AO and DRP erred on facts

Nikesh Arora, Gurgaon vs. DCIT, International Taxation, Gurgon

In the result, appeal is allowed in the terms indicated above

ITA 1008/DEL/2022[2017-18]Status: DisposedITAT Delhi18 Jul 2024AY 2017-18

Bench: We Proceed To Deal With The Substantive Issues Arising

Section 143(3)Section 144C(13)Section 2

rights to proceed against the non-resident US company, which arises out of agreements entered into outside India. He submitted, as per section 9(1) of the Act, capital gain through the transfer of a capital asset situated in India is deemed to accrue and arise in India. He submitted ... right by virtue of the assignment agreement entered with SIMI US outside India. It is the case of the assessee that as per section 9(1)(i) of the Act, which is a deeming provision, income accruing or arising whether directly or indirectly through the transfer of capital asset situated

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

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

ITA 833/BANG/2024[2014-15]Status: DisposedITAT Bangalore10 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

Indian entity was passed, wherein the payment to foreign entity was held to be FTS as per section 9(1)(vii) of the Act as well as India-US DTAA and the Indian entity was treated as assessee in default for non-deduction of TDS. Since present assessee being foreign ... assessee to its foreign Agent for arranging export sales and recovery of payments could not be regarded as fee for technical services under section 9(1)(vii) of the I.T. Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

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

ITA 832/BANG/2024[2013-14]Status: DisposedITAT Bangalore10 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

Indian entity was passed, wherein the payment to foreign entity was held to be FTS as per section 9(1)(vii) of the Act as well as India-US DTAA and the Indian entity was treated as assessee in default for non-deduction of TDS. Since present assessee being foreign ... assessee to its foreign Agent for arranging export sales and recovery of payments could not be regarded as fee for technical services under section 9(1)(vii) of the I.T. Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were

Jiangsu Zhongtian Technology Co Ltd, Gurgaon vs. ACIT Circle Int Tax 2(1)(2), New Delhi

In the result, the appeal of the assessee is allowed and the Stay Application of the assessee is dismissed

ITA 350/DEL/2023[2020-21]Status: DisposedITAT Delhi27 Jun 2024AY 2020-21

Bench: Dr. B. R. R. Kumar, Sh. Anubhav Sharma

For Appellant: Sh. Kamal Sawhney, Adv. &For Respondent: Sh. Vizay B. Vasanta, CIT-DR
Section 143(3)Section 234A

supply has to be segregated from the installation and only then would question of apportionment arise having regard to the expressed language of section 9(1)(i), which makes the income taxable in India to the extent it arises in India.” 18. Thus, if we carefully analyse the ratio laid

Income Tax Officer, Ward-2(1)(1), Bengaluru vs. G. Tex Inc, Bengaluru

In the result, the appeal filed by the revenue is dismissed

ITA 1129/BANG/2023[2011-12]Status: DisposedITAT Bangalore26 Jun 2024AY 2011-12

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year : 2011-12

For Appellant: Shri Hemanth, CAFor Respondent: Shri V. Parithivel, JCIT-DR
Section 142(1)Section 143(3)Section 148Section 195Section 195(1)Section 250Section 40

produced either before the assessing authority or at the first appellate stage. Further the Ld.DR also submitted that as per the provision of section 9(1)(i) of the Act, all income accruing or arising, whether directly or indirectly through or from any business connection in India, the income

Dy. Commissioner of Income Tax International Taxation-4(2)(2), Mumbai vs. Star Cruise Management Limited, Mumbai

In the result, the appeal by the Revenue for the assessment year 2018-

ITA 3886/MUM/2023[2020-21]Status: DisposedITAT Mumbai30 May 2024AY 2020-21

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Jishaan JainFor Respondent: Shri Anil Sant
Section 250Section 5(2)(a)Section 9(1)(i)

Star Travel (India) Services Put Ltd (“SCITSPL) does not constitute an agency PE of the assessee within the meaning of Explanation 2 to section 9(1)(i) of the Act with regard to the business income received by it, especially in view of the fact that there is no DTAA

Dy. Commissioner of Income Tax International Taxation-4(2)(2), Mumbai vs. Star Cruise Management Limited, Mumbai

In the result, the appeal by the Revenue for the assessment year 2018-

ITA 3873/MUM/2023[2018-19]Status: DisposedITAT Mumbai30 May 2024AY 2018-19

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Jishaan JainFor Respondent: Shri Anil Sant
Section 250Section 5(2)(a)Section 9(1)(i)

Star Travel (India) Services Put Ltd (“SCITSPL) does not constitute an agency PE of the assessee within the meaning of Explanation 2 to section 9(1)(i) of the Act with regard to the business income received by it, especially in view of the fact that there is no DTAA

Dy. Commissioner of Income Tax International Taxation-4(2)(2), Mumbai vs. Star Cruise Management Limited, Mumbai

In the result, the appeal by the Revenue for the assessment year 2018-

ITA 3871/MUM/2023[2019-20]Status: DisposedITAT Mumbai30 May 2024AY 2019-20

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Jishaan JainFor Respondent: Shri Anil Sant
Section 250Section 5(2)(a)Section 9(1)(i)

Star Travel (India) Services Put Ltd (“SCITSPL) does not constitute an agency PE of the assessee within the meaning of Explanation 2 to section 9(1)(i) of the Act with regard to the business income received by it, especially in view of the fact that there is no DTAA

DCIT, Circle 3(1) (1), International Taxation, New Delhi vs. Ricardo Uk Ltd, New Delhi

In the result, the appeals are dismissed

ITA 1410/DEL/2023[2019-20]Status: DisposedITAT Delhi30 May 2024AY 2019-20

Bench: Shri Saktijit Dey, Vice- & Shri Brajesh Kumar Singh

only to the extent as is attributable to that permanent establishment. This is in pari materia with clause (a) of Explanation 1 to section 9(1)(i) of the Income-tax Act. Thus where the entire activity of an enterprise are not carried out in a Contracting State where

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

In the result, the appeals are dismissed

ITA 1409/DEL/2023[2018-19]Status: DisposedITAT Delhi30 May 2024AY 2018-19

Bench: Shri Saktijit Dey, Vice- & Shri Brajesh Kumar Singh

only to the extent as is attributable to that permanent establishment. This is in pari materia with clause (a) of Explanation 1 to section 9(1)(i) of the Income-tax Act. Thus where the entire activity of an enterprise are not carried out in a Contracting State where

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

In the result, the appeals are dismissed

ITA 1408/DEL/2023[2017-18]Status: DisposedITAT Delhi30 May 2024AY 2017-18

Bench: Shri Saktijit Dey, Vice- & Shri Brajesh Kumar Singh

only to the extent as is attributable to that permanent establishment. This is in pari materia with clause (a) of Explanation 1 to section 9(1)(i) of the Income-tax Act. Thus where the entire activity of an enterprise are not carried out in a Contracting State where

ACIT Circle 13(1), New Delhi vs. Lx Pantos India Private Limited, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 912/DEL/2023[2018-19]Status: DisposedITAT Delhi17 May 2024AY 2018-19

Bench: Shri Kul Bharat & Shri M.Balaganesh

Section 143(3)Section 195Section 40Section 9(1)Section 9(1)(i)

Pantos India is availing advisory services from its associated enterprises and overseas entities which are duly covered under the definition of consultancy under section 9(1)(vii) of the Act and under DTAA as well. Thus, Pantos India is liable to deduct TDS on its claim of Shipment Clearing ... consideration as to whether the payment in respect of these services can be held as fees for technical services within the meaning of section 9(1)(vi) of L.T. Act. The expression fees for technical services has been defined in Explanation 2 to section 9(1)(vii) as under

ACIT Circle 13(1), New Delhi vs. Lx Pantos India Private Limited, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 911/DEL/2023[2017-18]Status: DisposedITAT Delhi17 May 2024AY 2017-18

Bench: Shri Kul Bharat & Shri M.Balaganesh

Section 143(3)Section 195Section 40Section 9(1)Section 9(1)(i)

Pantos India is availing advisory services from its associated enterprises and overseas entities which are duly covered under the definition of consultancy under section 9(1)(vii) of the Act and under DTAA as well. Thus, Pantos India is liable to deduct TDS on its claim of Shipment Clearing ... consideration as to whether the payment in respect of these services can be held as fees for technical services within the meaning of section 9(1)(vi) of L.T. Act. The expression fees for technical services has been defined in Explanation 2 to section 9(1)(vii) as under