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“business connection”

International TaxSection 9(1)(i)Section 9(1)(i)833 judgments

The decision most relied on for business connection is Ishikawajima Harima Heavy Industries Ltd. v. DIT (288 ITR 408), cited in 394 judgments on BharatTax.

Leading authorities on business connection

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. 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.

Transmission Corporation of Andhra Pradesh v. CIT
239 ITR 587 · 1999 · Supreme Court
243
citing judgments

The Supreme Court lays down principles for deducting tax at source (TDS) under Section 195 on payments to non-residents, including aspects of income deemed taxable in India and the application of Double Taxation Avoidance Agreements (DTAAs) under Section 90.

Motorola Inc. v. Dy. CIT
95 ITD 269 · 2005 · High Court
213
citing judgments

Revenue must demonstrate the existence of a Permanent Establishment (PE) of a foreign enterprise in India, including establishing that transactions underlying a Dependent Agent PE were not at arm's length. Income from the sale of goods is not taxable in India if title and risk in the goods pass outside India.

CIT v. R.D. Aggarwal and Co.
56 ITR 20 · 1965 · Supreme Court
156
citing judgments

A 'business connection' for non-residents requires a real and intimate relation between their trading activities outside India and activities within India, contributing directly or indirectly to their earnings. The Supreme Court assigned a wide meaning to this term.

CIT v. Faizan Shoes (P.) Ltd.
367 ITR 155 · 2014 · High Court
139
citing judgments

Disallowance under section 40(a)(i) for non-deduction of tax at source on export agency commission paid to a non-resident does not apply if the non-resident's income is not taxable in India under section 9(1), such as when the agent operates outside India without a permanent establishment or business connection in India.

Set Satellite Pte Ltd. v. CIT
307 ITR 205 · 2008 · High Court
96
citing judgments

If a Dependent Agency Permanent Establishment (DAPE) is remunerated at arm's length based on transfer pricing principles, no further profits can be attributed to the foreign enterprise. The principles of profit attribution under DTAA Article 7 are pari-materia to Section 9(1)(i) of the Income Tax Act.

IT Solution Inc. v. ADIT
86 Taxmann.com 240 · 2017 · Supreme Court
73
citing judgments

Once the arm's length principle has been satisfied under transfer pricing provisions, no further profit can be attributed to a person even if they have a permanent establishment in India. A reassessment notice based solely on the allegation of a permanent establishment is unsustainable if the arm's length price procedure has been followed.

Judgments citing business connection

Gemological Research (Thailand) Co. Ltd., Thailand vs. The Assistant Commissioner of Income-Tax (International Taxation) - Circle 2(3)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1291/MUM/2025[2019-20]Status: DisposedITAT Mumbai09 Sept 2025AY 2019-20

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Anikesh Banerjee, Hon’Ble

For Appellant: Shri Satya Pal Kumar, CIT D/R a/w Shri Krishna Kumar, Sr. D/R
Section 147Section 148

Dubai Branch of GIA India Laboratory Private Limited is concerned, the assessee was claimed not taxable under the Act as it has not business connection in India nor a dependent agent in India and even assuming there were one, the income earned by the assessee is not from India

Metso Oyj, Finland vs. Assistant Commissioner of Income Tax, (International Taxation), Circle-1(2), Kolkata

In the result, the appeal filed by the assessee is dismissed and the order of the Ld

ITA 616/KOL/2025[2022-23]Status: DisposedITAT Kolkata25 Aug 2025AY 2022-23

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270ASection 56Section 9

incomes shall be deemed to accrue or arise in India: (i) all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through ... guarantee fee earned by the Appellant can be deemed to have accrued or arisen only if the Assessee has a business connection in India. In this regard, it may be noted that the term “business connection” is not defined in the Act. However, in the case of Carborandum

T.S.Ajoy, Salem vs. ITO/Ward-1/Krishnagiri, Krishnagiri

In the result, the appeal filed by the assessee in ITA No

ITA 1850/CHNY/2025[2017-18]Status: DisposedITAT Chennai25 Aug 2025AY 2017-18

Bench: Shri George George K & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1850/Chny/2025, Assessment Year: 2017-18

For Appellant: Shri S.Sridhar, Advicate(Erode)For Respondent: Ms.Gowthami Manivasagam, JCIT
Section 68Section 69

heard rival submissions in the light of material available on records. We have noted that the assessee has provided sufficient evidences to allude the business connection of impugned deposits with sales of assessee. The VAT records and returns cannot be loosely brushed aside. Besides the Ld.AO has accepted the book

Lahmeyer International Gmbh, Gurgaon vs. DDIT, New Delhi

In the result, appeals of assessee in ITA Nos

ITA 784/DEL/2014[2010-11]Status: DisposedITAT Delhi22 Aug 2025AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Naveen Chandra

For Appellant: Shri Satyam Sethi, AdvFor Respondent: Shri Vedanshu Tripathi, CIT- DR
Section 143(3)Section 144C(13)Section 234ASection 234BSection 234CSection 271(1)(c)

Revenue's contention, it is undisputed fact that the income earned by the assessee was in the nature of FTS, there is business connection and income accrues and arises or deem to accrue and arise in India. The regional existence of place of PE and the article

M/S. Lahmeyer International Gmbh, Germany vs. DDIT, New Delhi

In the result, appeals of assessee in ITA Nos

ITA 5634/DEL/2012[2009-10]Status: DisposedITAT Delhi22 Aug 2025AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Naveen Chandra

For Appellant: Shri Satyam Sethi, AdvFor Respondent: Shri Vedanshu Tripathi, CIT- DR
Section 143(3)Section 144C(13)Section 234ASection 234BSection 234CSection 271(1)(c)

Revenue's contention, it is undisputed fact that the income earned by the assessee was in the nature of FTS, there is business connection and income accrues and arises or deem to accrue and arise in India. The regional existence of place of PE and the article

The Dy. Commr. of Income Tax, Cir.-3(1), Rajkot-Gujarat vs. M/S. Sonpal Exports Pvt. Ltd., Rajkot-Gujarat

In the result, appeal filed by the revenue is dismissed

ITA 29/RJT/2018[2012-13]Status: DisposedITAT Rajkot21 Aug 2025AY 2012-13

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकरअपीलसं./Ita No. 29/Rjt/2018 "नधा"रणवष" / Assessment Year: (2012-13) (Hybrid Hearing) The Dcit, Circle – 3(1), Vs. M/S. Sonpal Exports Pvt. Ltd. Rajkot Aayakar Bhavan, Room Dhari Bagsara Road, Nr. Ice No. 114, 1St Floor, Race Course Factory, Amreli Ring Road, Rajkot Pan No.: Aajcs0177N (Assessee) (Respondent) Assessee By : Shri Kalpesh Doshi, Ld. Ar Respondent By : Shri Praveen Verma, Ld. Cit(Dr) Date Of Hearing : 24/06/2025 Date Of Pronouncement : 21/08/2025 आदेश / O R D E R Per, Dr. Arjun Lal Saini, Am; By Way Of This Appeal, The Revenue, Has Challenged Correctness Of The Order Dated 16.11.2017, Passed By The Learned Cit(A), In The Matter Of Assessment Under Section 143(3) Of The Income Tax Act 1961, For The Assessment Year 2012-13. Grievances Raised By The Revenue, Which Are Interconnected & Will Be Taken Up Together, Are As Follows: “1. On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Deleting The Addition Of Rs. 13,96,33,023/- Holding That Provision Of Section 195 Will Not Be Applicable. 2. On The Facts Of The Case & In Law, The Ld. C.I.T. (A) Erred In Ignoring The Facts That The Assessee Has Failed To Prove The Genuineness Of Foreign Commission Expenses Before The A.O. 3. It Is, Therefore, Prayed That The Order Of The C.I.T. (A) May Be Set Aside & That Of The A.O. Be Restored To The Above Extent. Dcit Vs. M/S. Sonpal Export Pvt. Ltd.

For Appellant: Shri Kalpesh Doshi, Ld. ARFor Respondent: Shri Praveen Verma, Ld. CIT(DR)
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 195

provisions of Section 9 states that all income accruing or arising whether directly or indirectly, through or from any business connection in India, or through or from any property in Indla, or through or from any asset or source of income in India, or through the transfer of capital asset ... countries, no service has been rendered by them in India and hence no income arose in India. Moreover, the agent did not have any business connection or Permanent Establishment in India. Hence, assessee submitted before the assessing officer that the foreign commission paid by the assessee to the non-resident

ACIT 2(2)(1) Mumbai, Aayakar Bhavan Mumbai vs. National Peroxide Limited, Mumbai

In the result, the appeal of the revenue bearing ITA No 2816/Mum/2023 is partly allowed

ITA 2816/MUM/2023[2018-19]Status: DisposedITAT Mumbai04 Aug 2025AY 2018-19

Bench: Shri Narendra Kumar Billaiya, Account Member & Shri Anikesh Banerjeeacit 2(2)(1) Mumbai Vs National Peroxide Limited 4Th Floor, Naville House, J N Heredia Aayakar Bhavan M.K. Road, Mumbai-400 020 Marg, Ballard Estate, Mumbai-400 001 Pan: Aabcn7072K

For Appellant: Shri Yogesh TharFor Respondent: Shri Satyaprakash R Singh, CIT DR
Section 115Section 143Section 143(1)(a)Section 143(3)Section 14ASection 250Section 43B

Appellant's Canara Bank account and SBI account (signed by MD, NT and other senior employees) in favor of entities which had no business connection and/or association with the Appellant. Most of these cheques were drawn in the name of RBIM sales. To conceal this fraud, journal entries were passed

ACIT, Central Circle-1(2), Hyderabad vs. Vpr Mining Infrastructure Pvt Ltd, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 417/HYD/2025[2014]Status: DisposedITAT Hyderabad30 Jul 2025

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.417/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2014-15) Acit Vs. Vpr Mining Central Circle-1(2) Infrastructure Pvt.Ltd. Hyderabad Nellore Pan : Aaacv6733A (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri M.V.Prasad, Ar रधजस् व द्वधरध/Revenue By: Shri Narender Kumar Naik, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 23/07/2025 घोर्णध की तधरीख/ 30/07/2025 Date Of Pronouncement: आदेश / Order

For Appellant: Shri M.V.Prasad, ARFor Respondent: Shri Narender Kumar Naik
Section 132Section 132(4)Section 143(3)Section 147Section 153ASection 153C

transaction of sale to an individual. Therefore, the document found in the search and seizure operation of a party having no business connection or otherwise any transaction with the assessee cannot be related to the assessee. The document on standalone undisputedly does not reveal anything connecting to the assessee, except

Jawaharlal Gulabrai Tulsiani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

In the result, all appeals filed by the respective assesses are allowed

ITA 538/MUM/2025[2007-08]Status: DisposedITAT Mumbai29 Jul 2025AY 2007-08

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal &For Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of 17 Pratab Gulabrai Tulsiani and group evidence received through the Geneva HSBC leak, which indicated significant unreported investments

Sham Gulabrai Tulsyani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

ITA 483/MUM/2025[2007-08]Status: DisposedITAT Mumbai29 Jul 2025AY 2007-08

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal & Akash KhandelwalFor Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of evidence received through the Geneva HSBC leak, which indicated significant unreported investments by the Applicant in an HSBC

Naraindas Gulabrai Tulsiani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

In the result, all appeals filed by the respective assesses are allowed

ITA 464/MUM/2025[2006-07]Status: DisposedITAT Mumbai29 Jul 2025AY 2006-07

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal &For Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of 17 Pratab Gulabrai Tulsiani and group evidence received through the Geneva HSBC leak, which indicated significant unreported investments

Naraindas Gulabrai Tulsiani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

In the result, all appeals filed by the respective assesses are allowed

ITA 463/MUM/2025[2007-08]Status: DisposedITAT Mumbai29 Jul 2025AY 2007-08

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal &For Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of 17 Pratab Gulabrai Tulsiani and group evidence received through the Geneva HSBC leak, which indicated significant unreported investments

Partab Gulabrai Tulsiani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

In the result, all appeals filed by the respective assesses are allowed

ITA 449/MUM/2025[2007-08]Status: DisposedITAT Mumbai29 Jul 2025AY 2007-08

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal &For Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of 17 Pratab Gulabrai Tulsiani and group evidence received through the Geneva HSBC leak, which indicated significant unreported investments

Partab Gulabrai Tulsiani, Delhi vs. ACIT, Int. Tax Circle 4(2)(1), Mumbai

ITA 448/MUM/2025[2006-07]Status: DisposedITAT Mumbai29 Jul 2025AY 2006-07

Bench: Shri Amit Shukla & Shri Vikram Singh Yadav

For Appellant: Shri Ashok Khandelwal & Akash KhandelwalFor Respondent: Shri Krishna Kumar, Sr.DR
Section 147Section 149(1)(c)Section 234ASection 254

applicant assessee. The applicant assessee has argued that he is a UK citizen, a non-resident of India, and the income has no business connection to India. Hence, the sums are not assessable in India as per section 5 of the Income Tax Act, 1961. Panel has examined the Applicant ... assertion that there is no business connection to India, and the income in HSBC Geneva does not have any link to India. This simplistic explanation is not acceptable, particularly in light of evidence received through the Geneva HSBC leak, which indicated significant unreported investments by the Applicant in an HSBC

Gupta Ashok Kumar, Hyderabad vs. Income Tax Officer, Ward-1(2), Hyderabad

In the result, appeal of the assessee allowed

ITA 376/HYD/2024[2014-15]Status: DisposedITAT Hyderabad25 Jul 2025AY 2014-15

Bench: Shri Manjunatha G & Shri Ravish Sood

For Appellant: CA, P Murali Mohan RaoFor Respondent: Shri Gurpreet Singh, Sr. AR
Section 148Section 68

mere transfer of funds through banking channel, is not sufficient to prove genuineness of the transactions and further, the assessee failed to prove any business connection between the lenders and the 18 ITA.No.376/Hyd./2024 assessee and further, the purpose of loan borrowed from the above parties was not explained

M/S. Tbea Shenyang Trasformer Gropup Company Limited, Vadodara vs. The Deputy Commissioner of Income Tax, Int. Tax., Vadodara

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

ITA 581/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad22 Jul 2025AY 2012-13

Bench: Smt. Annapurna Gupta & Ms. Suchitra Kambleआयकर अपील सं./I.T.A. No. 581/Ahd/2017 (िनधा"रण वष" / Assessment Year : 2012-13) बनाम/ M/S. Tbea Shenyang Deputy Commissioner Of Transformer Group Income Tax Vs. Company Limited International Taxation, National Highway No.-8, Vadodara Villae : Miyagam, Karja, Vadodara, Gujarat - 390007 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadct4557F (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri Arpit Jain, Ar ""यथ" क" ओर से/Respondent By : Shri Mahesh Shah, Cit. Dr 24/04/2025 Date Of Hearing Date Of Pronouncement 22/07/2025 O R D E R Per Smt. Annapurna Gupta, Am:

For Appellant: Shri Arpit Jain, ARFor Respondent: Shri Mahesh Shah, CIT. DR
Section 143(3)Section 9Section 92C

deleted. It be so held now.” 47. The facts relating to the issue are that the TPO noted that TBEA China has business connection within the meaning of Section 9 of the Act and PE within the meaning of Article 5(2) of India China DTAA during various F.Ys ... addition to the existence of business connection and PE, he also noted certain components of income from offshore supply contract attributable to such business connection and PE. He noted that a single price had been agreed upon between the head office in China and PGCIL for equipments sold under offshore

Deputy Commissioner of Income Tax, Chennai vs. Ashok Leyland Limited, Chennai

In the result, appeal filed by the assessee is partly allowed and the

ITA 1663/CHNY/2024[2019-20]Status: DisposedITAT Chennai07 Jul 2025AY 2019-20

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.R. VijayaraghavanFor Respondent: Ms.Ann Marry Baby, CIT
Section 14ASection 92C

held that such part of the income as it was reasonably attributable to the operations carried out in India is taxable. The expression "business connection" was also considered and then it was found that it will include a person acting on behalf of a non- resident and carried on certain ... activities is having business ITA Nos.1402 & 1663/Chny/2024 (AY 2019-20) M/s. Ashok Leyland Ltd. :: 40 :: connection. A business connection has to be real and intimate and through which income must accrue or arise whether directly or indirectly to the non-resident. On those facts, since it was found that

Ashok Leyland Limited, Chennai vs. DCIT Non Corp Circle 8(1) Ltu - II, Chennai

ITA 1402/CHNY/2024[2019-20]Status: DisposedITAT Chennai07 Jul 2025AY 2019-20

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1402/Chny/2024 निर्धारण वर्ष/Assessment Year: 2019-20 M/S. Ashok Leyland Ltd., No.1, Sardar Patel Road, Guindy, Chennai-600 032. [Pan: Aaaса 4651 L] (अपीलार्थी/Appellant) V. The Dcit, Ncc-8(1), Ltu-Ii, Chennai. (प्रत्यर्थी/Respondent) आयकर अपील सं./Ita No.1663/Chny/2024 निर्धारण वर्ष/Assessment Year: 2019-20 The Dcit, Ncc-8, Chennai. (अपीलार्थी/Appellant) V. M/S. Ashok Leyland Ltd., No.1, Sardar Patel Road, Guindy, Chennai-600 032. [Pan: Aaaса 4651 L] (प्रत्यर्थी/Respondent) Assessee By : Mr.R. Vijayaraghavan, Advocate Department By : Ms.Ann Marry Baby, Cit सुनवाईकीतारीख/Date Of Hearing : 04.06.2025 घोषणाकीतारीख /Date Of Pronouncement : 07.07.2025 आदेश / Order Per Aby T. Varkey, Jm: These Are Cross-Appeals Preferred By The Assessee As Well As The Revenue Against The Order Of The Learned Commissioner Of Income Tax

For Appellant: Mr.R. Vijayaraghavan, AdvocateFor Respondent: Ms.Ann Marry Baby, CIT
Section 14ASection 92C

held that such part of the income as it was reasonably attributable to the operations carried out in India is taxable. The expression "business connection" was also considered and then it was found that it will include a person acting on behalf of a non- resident and carried on certain ... activities is having business ITA Nos.1402 & 1663/Chny/2024 (AY 2019-20) M/s. Ashok Leyland Ltd. :: 40 :: connection. A business connection has to be real and intimate and through which income must accrue or arise whether directly or indirectly to the non-resident. On those facts, since it was found that

Rga International Reinsurance Company Designated Activity Company, Ireland vs. Deputy Commissioner of Income Tax (International Tax) - Circle 4(1)(1), Mumbai

Appeal of the assessee is partly allowed

ITA 1092/MUM/2025[2022-23]Status: DisposedITAT Mumbai25 Jun 2025AY 2022-23

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Shri Satya Pal Kumar, CIT-DR
Section 143(3)Section 144C(13)Section 153Section 9(1)(i)

case and in law, and based on the directions of the Hon'ble DRP, erred in concluding that the Appellant has a business connection in India as per the provisions of section 9(1)(i) of the Act on the basis that the Appellant is earning income from India ... Commissioner of Income- Tax, [1968 SCC OnLine Bom 133: (1969) 73 ITR 283] "It would thus be seen that in order to constitute a "business connection" as contemplated by section 42, there must be an activity of the non-resident in the taxable territories having an intimate and real relation

Zscaler, Inc., United States of America vs. DCIT, International Tax, Circle 3(1)(1), New Delhi

The appeals are allowed

ITA 928/DEL/2025[2022-23]Status: DisposedITAT Delhi18 Jun 2025AY 2022-23

Bench: Shri Anubhav Sharma & Shri Manish Agarwal, Ccountant Member Assessment Year: 2021-22 Assessment Year : 2022-23 Zscaler Inc., Vs Dcit, 120, Holger Way San Jose, International Tax Circle 3(1)(1), California, Usa, Delhi. Usa 95134. Pan: Aaacz4350P (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate; Shri Kishore Kunal, Advocate; Ms Ankita Prakash, Advocate; & Shri Govind Gupta, Advocate Revenue By : Ms Ekta Jain, Cit-Dr Date Of Hearing : 05.05.2025 Date Of Pronouncement : 18.06.2025 Order Per Anubhav Sharma, Jm: These Appeals Are Preferred By The Assessee Against The Final Assessment Orders Dated 31.10.2023 & 22.01.2025 Passed By The Dy. Commissioner Of Income-Tax, International Tax Circle 3(1)(1), Delhi (Hereinafter Referred To As The Ld. Ao) U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Ekta Jain, CIT-DR
Section 142(1)Section 143(2)Section 143(3)

levy at the rate of 2% on the receipts wants to avoid paying taxes at the rate of 40% on the profit attributed to business connection in India as business Income. As per the form no. 1 submitted by assessee, it is observed that assessee has filed the said form