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“Section 9(1)”

Section References (mined)Section 9Section 9(1)1,741 judgments

The decision most relied on for Section 9(1) 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)

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)

Atos Information Technologies Hk Limited, Mumbai vs. Deputy Commissioner of Income Tax (Int Tax)-1(1)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 4708/MUM/2023[2021-22]Status: DisposedITAT Mumbai10 Oct 2025AY 2021-22

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

For Appellant: Ms. Chandani Shah a/w Ms. Tejal Saraf &For Respondent: Shri Satya Pal Kumar - CIT D/R
Section 143(2)Section 143(3)Section 144C(13)Section 234ASection 234BSection 270ASection 9

model, design, invention and process. After coming to the conclusion that the payment is in the nature of "royalty" within the scope of section 9(1)(vi), the revenue went further to hold that, since assessee has provided technical, managerial and consultancy services to SCB, therefore, it also falls ... been inserted with retrospective effect from June 1, 1976. In other words, Explanation 5 has been inserted retrospectively from the birth of Section 9(1)(vi) to clarify the intention behind the legislation. Hence, Explanation 5 is to be read with the Section 9(1)(vi) which was there

Bmc Software Asia Pacific Pte Ltd, Singapore vs. Assistant Commissioner of Income Tax, Pune

In the result, appeal of the assessee is partly allowed

ITA 329/PUN/2025[2022-2023]Status: DisposedITAT Pune09 Oct 2025AY 2022-2023

Bench: or at, the time of hearing of the appeal, so as to enable the Honourable income-tax Appellate Tribunal to decide this appeal according to law." Findings & Analysis : 2. We have heard both the parties, perused the records. Assessee is Tax Resident of Singapore and it is engaged in selling Software Products to end use customers, including customers in India. It is mentioned in the Assessment Order that Assessee has also provided IT Support and Maintenance Services with reference to such softw

Section 115ASection 143(3)Section 144C(5)Section 270ASection 274Section 9(1)(vii)

that an amount of Rs.33,13,39,754/- received on account of IT Support and Maintenance Services was “fees for technical services” under section 9(1)(vii) of the Act read with Article 12 of India Singapore DTAA. 3.1 In the Draft Assessment Order, Assessing Officer held as under

Hari Krishna Exports Private Limited, Mumbai vs. Principal Commissioner of Income Tax -5, Mumbai

In the result, appeal of the assessee is allowed

ITA 1858/MUM/2025[2020-21]Status: DisposedITAT Mumbai08 Oct 2025AY 2020-21

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

For Appellant: Shri Nitesh Joshi, A/RFor Respondent: Shri Ritesh Misra, CIT D/R
Section 143(3)Section 195Section 263Section 40

diamond based on such report. 1. 2. 4. The term 'fees for technical services' has been defined in Explanation 2 to Section 9(1)(vii) of the Act which is reproduced below: "Explanation 2. - For the purposes of this clause, "fees for technical services" means any consideration (including any lump

Denso International Asia Co., Ltd., Thailand vs. The Assistant Commissioner of Income Tax, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 402/DEL/2025[2022-23]Status: DisposedITAT Delhi08 Oct 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.402/िद"ी/2025(िन.व. 2022-23) Denso International Asia Co. Ltd., 888 Moo 1, Bangna-Trad Road Km 27 5, Bangbo Subdistrict, Samutprakarn Province, Thailand, 10560 ...... अपीलाथ"/Appellant Pan: Aadcd-4652-K बनाम Vs. Assistant Commissioner Of Income Tax, Circle Interantional Taxation 1(2)(2), Civic Centre, ..... "ितवादी/Respondent Minto Road, New Delhi 110002 अपीलाथ" "ारा/ Appellant By : S/Shri Vishal Kalra, Saumyendra Tomar, Advocates & Ms. Taranjeet Kaur, Chartered Accountant "ितवादी"ारा/Respondent By : Shri Nikhil Kumar Govila, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 10/07/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 08/10/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 28.11.2024, Passed U/S. 143(3) R.W.S 144C(13) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’). 2. Facts Of The Case In Brief As Emanating From Records Are: The Assessee Is A Tax Resident Of Thailand. The Assessee Acts As Regional Service Centre Of The Denso

For Appellant: S/Shri Vishal Kalra, Saumyendra TomarFor Respondent: Shri Nikhil Kumar Govila, CIT(DR)
Section 143(3)Section 9(1)(vii)

present appeal has assailed the action of AO in taxing receipts amounting to Rs.14,91,92,253/- as FTS under the provisions of section 9(1)(vii) of the Act and invoking the provisions of Article 22(3) of India-Thailand DTAA. He pointed that similar issue arose in assessee ... technology trend; 18. Now Section 9 of the Act enumerates certain incomes to be deemed to accrue or arise in India and Section 9(1)(vii) of the Act provides under what conditions FTS income shall be considered to accrue or arise in India. Explanation 2 to Section 9(1

Sky High II Leasing Company Limited, Mumbai vs. The Assistant Commissioner of Income Tax (International Tax) Circle 4(2)(1), Mumbai

ITA 1550/MUM/2025[2022-23]Status: DisposedITAT Mumbai06 Oct 2025AY 2022-23

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 143(3)Section 9(1)(vi)

related measures to prevent base erosion and profit shifting (MLI). Accordingly the AO treated the impugned income as Royalty to be taxable under section 9(1)(vi) of the Act and made addition accordingly. Aggrieved the assessee raised objections before the Dispute Resolution Panel (DRP). The DRP upheld the finding

Sky High Lxxx Leasing Company Limited, Mumbai vs. The Assistant Commissioner of Income Tax (International Tax) Circle 4(2)(1), Mumbai

ITA 1549/MUM/2025[2022-23]Status: DisposedITAT Mumbai06 Oct 2025AY 2022-23

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 143(3)Section 9(1)(vi)

related measures to prevent base erosion and profit shifting (MLI). Accordingly the AO treated the impugned income as Royalty to be taxable under section 9(1)(vi) of the Act and made addition accordingly. Aggrieved the assessee raised objections before the Dispute Resolution Panel (DRP). The DRP upheld the finding

Sky High Lxxviii Leasing Company Limited, Mumbai vs. The Assistant Commissioner of Income Tax (International Tax) Circle 4(2)(1), Mumbai

ITA 1548/MUM/2025[2022-23]Status: DisposedITAT Mumbai06 Oct 2025AY 2022-23

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 143(3)Section 9(1)(vi)

related measures to prevent base erosion and profit shifting (MLI). Accordingly the AO treated the impugned income as Royalty to be taxable under section 9(1)(vi) of the Act and made addition accordingly. Aggrieved the assessee raised objections before the Dispute Resolution Panel (DRP). The DRP upheld the finding

Sky High Xc Leasing Company Limited, Mumbai vs. The Assistant Commissioner of Income Tax (International Tax) Circle 4(2)(1), Mumbai

ITA 1547/MUM/2025[2022-23]Status: DisposedITAT Mumbai06 Oct 2025AY 2022-23

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 143(3)Section 234B

related measures to prevent base erosion and profit shifting (MLI). Accordingly the AO treated the impugned income as Royalty to be taxable under Section 9(1)(vi) of the Act and made addition accordingly. Aggrieved the assessee raised objections before the Dispute Resolution Panel (DRP). The DRP upheld the finding

Sky High Lxxix Leasing Company Limited, Mumbai vs. The Assistant Commissioner of Income Tax (International Tax) Circle 4(2)(1), Mumbai

ITA 1546/MUM/2025[2022-23]Status: DisposedITAT Mumbai06 Oct 2025AY 2022-23

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 143(3)Section 9(1)(vi)

related measures to prevent base erosion and profit shifting (MLI). Accordingly the AO treated the impugned income as Royalty to be taxable under section 9(1)(vi) of the Act and made addition accordingly. Aggrieved the assessee raised objections before the Dispute Resolution Panel (DRP). The DRP upheld the finding

Pratt & Whitney Canada Corp., Canada vs. Deputy Commissioner of Income Tax, International Taxation, Circle 2(2)(2), New Delhi

In the result, assessee’s appeals in ITA No

ITA 666/DEL/2025[2022-23]Status: DisposedITAT Delhi06 Oct 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Rajan Vohra, CAFor Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 133(6)Section 147Section 153Section 234ASection 234B

amounting to Rs. 242,65,46,501/- is taxable income of the assessee as Fees for Technical services ('FTS') under the provisions of section 9(1)(vii) of the Act and under the provisions of India - Canada DTAA. 13. Aggrieved, the assessee went in appeal before the DRP who confirmed

Pratt & Whitney Canada Corp., Canada vs. Deputy Commissioner of Income Tax, International Taxation, Circle 2(2)(2), New Delhi

In the result, assessee’s appeals in ITA No

ITA 665/DEL/2025[2018-19]Status: DisposedITAT Delhi06 Oct 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Rajan Vohra, CAFor Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 133(6)Section 147Section 153Section 234ASection 234B

amounting to Rs. 242,65,46,501/- is taxable income of the assessee as Fees for Technical services ('FTS') under the provisions of section 9(1)(vii) of the Act and under the provisions of India - Canada DTAA. 13. Aggrieved, the assessee went in appeal before the DRP who confirmed

Pratt & Whitney Canada (Sea) Pte. Ltd., Singapore vs. Deputy Commissioner of Income Tax, International Taxation, Circle 2(2)(2), New Delhi

In the result, assessee’s appeals in ITA No

ITA 626/DEL/2025[2022-23]Status: DisposedITAT Delhi06 Oct 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Rajan Vohra, CAFor Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 133(6)Section 147Section 153Section 234ASection 234B

amounting to Rs. 242,65,46,501/- is taxable income of the assessee as Fees for Technical services ('FTS') under the provisions of section 9(1)(vii) of the Act and under the provisions of India - Canada DTAA. 13. Aggrieved, the assessee went in appeal before the DRP who confirmed

Pratt & Whitney Canada (Sea) Pte. Ltd., Singapore vs. Deputy Commissioner of Income Tax, International Taxation, Circle 2(2)(2), New Delhi

In the result, assessee’s appeals in ITA No

ITA 620/DEL/2025[2018-19]Status: DisposedITAT Delhi06 Oct 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Rajan Vohra, CAFor Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 133(6)Section 147Section 153Section 234ASection 234B

amounting to Rs. 242,65,46,501/- is taxable income of the assessee as Fees for Technical services ('FTS') under the provisions of section 9(1)(vii) of the Act and under the provisions of India - Canada DTAA. 13. Aggrieved, the assessee went in appeal before the DRP who confirmed

Foods and Inns Limited, Mumbai vs. DCIT, Circle 2(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 4511/MUM/2025[2017-18]Status: DisposedITAT Mumbai30 Sept 2025AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

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

services were rendered outside India, they were “utilised” in India, and hence the sums were deemed to accrue or arise in India under Section 9(1). Referring to Section 195 and relying on an AAR ruling, he concluded that the assessee was under an obligation to deduct tax at source ... learned CIT(A), while affirming the disallowance, reasoned that the payments to non-residents were covered by the deeming provisions of Section 9(1). According to him, once commission and warehousing charges partook the character of consultancy, technical or managerial services, they fell within the ambit of “fees for technical

Shell International Petroleum Company Limited, Mumbai vs. Deputy Commissioner of Income Tax International Taxation -4(2)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 4712/MUM/2023[2021-22]Status: DisposedITAT Mumbai30 Sept 2025AY 2021-22

Bench: Smt. Beena Pillai & Smt. Renu Jauhrishell International Dy. Commissioner Of Petroleum Company Income –Tax (International Limited Taxation) 4(2)(1), Mumbai C/O B S R & Co. Llp, 2Nd 17Th Floor, Room No. 1708, Air Vs. Floor, Lodha Excelus, India Building, Nariman Point, Apollo Mills Compound, Mumbai N.M. Joshi Marg, Mahalakshmi, Mumbai 400011 स्थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaics0357B (Appellant) (Respondent) निर्ााररतीकीओरसे/ Assessee By: Shri. Madhur Agrawal/ Ms. Reema Grewal /Revenue By: Shri Satya Pal Kumar Cit (Dr) Date Of Hearing 06.08.2025 Date Of Pronouncement 30.09.2025 आदेश/O R D E R Per Renu Jauhri [A.M]: This Appeal Is Filed By The Assessee Against The Order Of Dy. Cit (It), Mumbai Dated 27.09.2023 Passed As Per The Directions Of The Dispute Resolution Panel (Drp) U/S. 144C(5) Of The Income Tax Act, 1961 [Hereinafter Referred To As "Act"] For Assessment Year [A.Y.] 2021-22. 2. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri. Madhur Agrawal/For Respondent: Shri Satya Pal Kumar CIT (DR)
Section 143(3)Section 144C(13)Section 144C(5)Section 153Section 2(24)Section 9(1)(vi)

Erred in holding that the payments received by the Appellant towards cost allocation for software license charges as Royalty' under provisions of Section 9(1)(vi) of the Act as well as Article 13 of the India-UK DTAA 8. Erred in not appreciating that the payments received were ... India and UK: and not in the nature of royalty within the meaning of the term in Explanation 2 to Clause (vi) of Section 9(1) of the Act and under Article 13 of DTAA. While we rule on Que. No. (iii) & (iv), Based on answer

Ebay Singapore Services Pvt. Ltd., Mumbai vs. DCIT (It) 2(2)(1), Mumbai

In the result, the appeal filed by the assessee stands allowed

ITA 2378/MUM/2022[2019-20]Status: DisposedITAT Mumbai30 Sept 2025AY 2019-20

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 143(2)Section 253

Flipkart Singapore by the assessee to Walmart Singapore. The capital gains so arising, it was urged, are not taxable in India under section 9(1) of the Income-tax Act, having regard to Article 13(5) of the India– Singapore DTAA, which allocates taxing rights over such gains exclusively ... residence of the alienator. In the present facts it is Singapore. 9. The assessee’s contention rests on the proposition that, while section 9(1)(i) of the Act read with Explanation 5 may, as a 27 ITA No.2378/Mum/2022; A.Y. 2019-20 Ebay Singapore Services Private Limited matter of domestic

Concentrix Cvg Customer Management Group Inc., United States of America vs. Assistant Commissioner of Income Tax, Circle 1(2)(1), International Taxation, Delhi

In the result, the assessee’s both appeals are allowed as above

ITA 1892/DEL/2025[2022-23]Status: DisposedITAT Delhi30 Sept 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraita No.7727/Del/2017, A.Y. 2013-14 Ita No.7924/Del/2018, A.Y. 2014-15 Ita No.1086/Del/2022, A.Y. 2017-18 Ita No.667/Del/2023, A.Y. 2018-19 Ita No.668/Del/2023, A.Y. 2019-20 Ita No.3512/Del/2023, A.Y. 2021-22 Ita No.1892/Del/2025, A.Y. 2022-23 Concentrix Cvg Customer Deputy Commissioner Management Group Inc., (Earlier Of Income Tax, Known As ‘Convergys Customer Vs Circle - 1(2)(1), Management Group Inc.’) International Taxation, C/O Pwc Pvt. Ltd., E-2 Tower, Civic Centre Sucheta Bhawan, Minto Road Gate No. 2, 1St Floor, New Delhi 11-A, Vishnu Digambar Marg, New Delhi Pan: Aaccc8989M (Appellant) (Respondent)

Section 234ASection 270A

arguments/contentions/submission of the Ld. Sr. Counsel. The word ‘use’ in relation to equipment occurring in clause (iva) of explanation 2 to section 9(1)(vi) is to be some positive act of utilization, application or employment of equipment for the desired purpose having certain degree of possession and control

Inmarsat Solutions Bv, Netherlands vs. The Assistant Commissioner of Income Tax Circle Intl. Tax. 2(1)(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 1729/DEL/2025[2022-23]Status: DisposedITAT Delhi30 Sept 2025AY 2022-23

Bench: Shri M. Balaganesh & Shri Vimal Kumarinmarsat Solutions B. V., Vs. Acit, 14Th Floor, The Ruby, 29, International Taxation, Senapati Bapat Marg, Dadar Circle-2(1)(1), Delhi (West), Mumbai (Appellant) (Respondent) Pan: Aacci9974L Assessee By : Shri Hiten Thakkar, Adv Revenue By: Shri M. S. Nethrapal, Cit Dr Date Of Hearing 24/09/2025 Date Of Pronouncement 30/09/2025

For Appellant: Shri Hiten Thakkar, AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 142(2)Section 143(2)Section 143(3)Section 144C(5)Section 9(1)

parallel treaties. The Court delivered its judgment in the context of the very amendments that are in question today; the Explanations to Section 9(1)(vi) vis a vis the interpretation of a Double Tax Avoidance Agreement. This Court rejected that any amendment could I.T.A. No. 1717/Del/2022 32 change ... whether the payments received by the assessee from Reliance can be taxed as royalty in view of the amendment to section 9(1)of the Act. It is said that a DTAA is a result of negotiations between two countries as to the extent to which special concessional tax provisions

ACIT, Circle 1(2)(1), International Taxation, New Delhi vs. Concentrix Cvg Customer Management Group Inc., Usa

In the result, the assessee’s both appeals are allowed as above

ITA 724/DEL/2023[2019-20]Status: DisposedITAT Delhi30 Sept 2025AY 2019-20

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishraita No.7727/Del/2017, A.Y. 2013-14 Ita No.7924/Del/2018, A.Y. 2014-15 Ita No.1086/Del/2022, A.Y. 2017-18 Ita No.667/Del/2023, A.Y. 2018-19 Ita No.668/Del/2023, A.Y. 2019-20 Ita No.3512/Del/2023, A.Y. 2021-22 Ita No.1892/Del/2025, A.Y. 2022-23 Concentrix Cvg Customer Deputy Commissioner Management Group Inc., (Earlier Of Income Tax, Known As ‘Convergys Customer Vs Circle - 1(2)(1), Management Group Inc.’) International Taxation, C/O Pwc Pvt. Ltd., E-2 Tower, Civic Centre Sucheta Bhawan, Minto Road Gate No. 2, 1St Floor, New Delhi 11-A, Vishnu Digambar Marg, New Delhi Pan: Aaccc8989M (Appellant) (Respondent)

Section 234ASection 270A

arguments/contentions/submission of the Ld. Sr. Counsel. The word ‘use’ in relation to equipment occurring in clause (iva) of explanation 2 to section 9(1)(vi) is to be some positive act of utilization, application or employment of equipment for the desired purpose having certain degree of possession and control

DCIT, Circle-1(2)(1) Int. Taxation, New Delhi vs. Concentrix Cvg Customer Management Group Inc., Usa

In the result, the assessee's both appeals are allowed as above

ITA 723/DEL/2023[2018-19]Status: DisposedITAT Delhi30 Sept 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 234ASection 270A

arguments/contentions/submission of the Ld. Sr. Counsel. The word 'use' in relation to equipment occurring in clause (iva) of explanation 2 to section 9(1)(vi) is to be some positive act of utilization, application or employment of equipment for the desired purpose having certain degree of possession and control