“DTAA benefit”

International TaxSection 90Section 9053 judgments

The decision most relied on for DTAA benefit is CIT v. De Beers India Minerals (P.) Ltd. (346 ITR 467), cited in 371 judgments on BharatTax.

Leading authorities on DTAA benefit

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.

India Vs. Azadi Bachao Andolan 263 ITR 706 (SC); and Vodafone International Holdings B.V v. Union of India

341 ITR 1 · 2012 · Supreme Court

295

citing judgments

Legitimate tax planning is permissible, allowing taxpayers to arrange their affairs to minimize tax liabilities while respecting the "look at test" for transaction genuineness and the separate entity principle in corporate taxation. The source of funds for treaty-beneficial structures does not automatically invalidate the transaction.

(i) Formula One World Championship Ltd. v. CIT

394 ITR 80 · 2017 · Supreme Court

200

citing judgments

This case provides foundational principles that illuminate the contours of the concept of 'Permanent Establishment' (PE) under tax treaties, especially regarding a 'fixed place' PE.

Assessing Officer (International Taxation) v. Nestle SA

458 ITR 756 · 2023 · Supreme Court

122

citing judgments

The benefit of a Most Favoured Nation (MFN) clause in a Double Taxation Avoidance Agreement (DTAA) is available only upon notification by the Government. A notification under section 90(1) is a necessary and mandatory condition for giving effect to a DTAA or any protocol that alters existing law.

CIT v. P.V.A.L. Kulandagan Chettiar

267 ITR 654 · 2004 · Supreme Court

citing judgments

This case established a principle regarding the application of Double Taxation Avoidance Agreements (DTAAs) versus domestic tax law, particularly concerning the use of more beneficial provisions for an assessee, though its specific impact has been nullified by subsequent legal amendments.

CIT v. Manmohan Das

59 ITR 699 · 1966 · Supreme Court

citing judgments

The eligibility for an assessee to carry forward and set off losses, including capital losses, against future income is determined by the Assessing Officer in the year the set-off is claimed, not in the year the loss was incurred.

Tax v. ZTE Corporation

392 ITR 80 · 2017 · High Court

citing judgments

Payments for acquiring a software license, where only the right to use the software is granted and no copyright ownership is transferred, do not constitute 'royalty' under Section 9(1)(vi) of the Income Tax Act or the India-China Double Taxation Avoidance Agreement. The judgment clarifies the distinction between copyright transfer and a mere license to use by referring to Sections 13 and 14 of the Copyright Act.

(5)) 3.12. DCIT v. Patni Computer Systems Ltd.

114 ITD 159 · 2008 · ITAT

citing judgments

An assessee has the option to choose between the provisions of the Income-tax Act and a Double Taxation Avoidance Agreement (DTAA) in any given year, and the non-election of DTAA benefits in one year does not prevent claiming them in subsequent years.

Judgments citing DTAA benefit

Leapfrog Financial Inclusion India (II) Ltd, Mauritius vs. ACIT, Circle 2(2)(1), International Taxation, New Delhi

ITA 366/DEL/2023[2020-21]Status: DisposedITAT Delhi11 Aug 2023AY 2020-21

Bench: Sh. G. S. Pannu & Sh. Saktijit Dey, Vice-Ita Nos.365 & 366/Del/2023 (Assessment Years : 2019-20 & 2020-21) & Stay Application No.85/Del/2023 (Assessment Year : 2020-21) Leapfrog Financial Vs. Acit Inclusion India (Ii) Ltd., Circle – 2(2)(1) 2Nd Floor, C/O Axis New Delhi Fiduciary Ltd., The Axis 26 Cybercity, Ebene, Mauritius - 72201 Pan No. Aaccl 8541 Q (Appellant) (Respondent) Assessee By Shri Deepak Chopra, Adv. Shri Anmol Anand, Adv. Ms. Priya Tandon, Adv. Revenue By Shri Vizay B. Vasanta, Cit-D.R. Date Of Hearing: 15.05.2023 Date Of Pronouncement: 11.08.2023

Section 143(3)Section 144C(13)

Inclusion India (II) Ltd. vs. ACIT 11 country. Section 90(4) of the Act clarifies that a non-resident taxpayer is eligible to claim DTAA benefits. 80. Article 1 of the India-Singapore DTAA states that the tax treaty applies only to one or more person who is a resident

Leapfrog Financial Inclusion India (II) Ltd, Mauritius vs. ACIT, Circle 2(2)(1), International Taxation, New Delhi

ITA 365/DEL/2023[2019-2]Status: DisposedITAT Delhi11 Aug 2023

Section 143(3)Section 144C(13)

Piyush Mathur, Banglore vs. ACIT Circle Int. Tax 2(2)(1), New Delhi

In the result, appeal of the assessee is treated as allowed for statistical purposes

ITA 351/DEL/2023[2020-21]Status: DisposedITAT Delhi04 Aug 2023AY 2020-21

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2020-21

For Appellant: Shri Piyush Kumar MathurFor Respondent: Shri Vizay B. Vasanta, CIT- DR

Section 10Section 143(3)Section 144C(1)Section 144C(2)(b)Section 17(2)Section 9(1)(i)

that salary received was claimed as exempt. He also stated that his salary is not taxable in India and that he had not claimed DTAA benefit. It was also his case before the Ld. AO that salary was received by him in Dubai bank account and provided copy of bank

M/S Kepco Plant Service & Engineering Co Limited, Mumbai vs. Commissioner of Income Tax-(It), Mumbai

ITA 1030/MUM/2022[2017-18]Status: DisposedITAT Mumbai28 Jun 2023AY 2017-18

For Appellant: Shri P.J. Pardiwala, Sr. AdvocateFor Respondent: Shri Purushottam Tripurari

Section 143(3)Section 263

rendition of such offshore services. 2.4. On the facts and circumstances of the case and in law, the Ld. CIT erred in denying the DTAA benefits to the Appellant and concluding that revenue from off-shore services provided by the Appellant amounting to INR 44.35 crores was attributable to operations ... mercantile system of accounting is being followed by the company and income & expenditure is recognized on accrual basis. The assessee should have claimed the DTAA benefits separately, if at all available. The AO has not made any enquiry or verification as to why full receipts have not been disclosed

Sapein Funds Ltd., Mauritius vs. CIT (International Taxation) Delhi-3, New Delhi

In the result, the appeal of the assessee is allowed

ITA 976/DEL/2022[2017-18]Status: DisposedITAT Delhi08 Jun 2023AY 2017-18

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Salil Kapoor, Adv. &For Respondent: Sh. Vizay Vasanta, CIT-DR

Section 143(3)Section 263

argued that any arrangement to avoid payment of legitimate taxes such as treaty shopping or conduit companies is not entitled to India- Mauritius DTAA benefits being held to be improper use of treaties. On this background, the examinations of facts are conducted to ascertain as to whether the arrangement made

Jaya Ashok Kumar Awasthi, Mumbai vs. ITO, Int Tx Ward-1(1)(1), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 677/MUM/2023[2017-18]Status: DisposedITAT Mumbai16 May 2023AY 2017-18

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 143(3)

years, the assessee is aggrieved by the assessment orders in respect of addition made towards income from house property and also in not giving DTAA benefits. 2 Jaya Ashok Kumar Awasthi 4. The Ld D.R submitted that the assessee is a non-resident, carrying on business in Dubai. Hence ... estimated the rental income on the basis of market enquiries and assessed the same. The Ld DRP confirmed the additions. In respect of DTAA benefits, the Ld DRP noticed that the assessee has filed the TRC in the paper book filed for AY 2017-18. Hence

Jaya Ashok Kumar Awasthi, Mumbai vs. ITO, Int Tx Ward-1(1)(1), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 676/MUM/2023[2016-17]Status: DisposedITAT Mumbai16 May 2023AY 2016-17

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 143(3)

Thr Infrastructure Pte Ltd, Gurgaon vs. DCIT, Cir.-3(1)(1), Intl Tax, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1915/DEL/2022[201-18]Status: DisposedITAT Delhi12 May 2023

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Gangadhar Panda, CIT-DR

Section 143(3)

furnished a Tax Residency Certificate (‘TRC’) obtained from the Singapore Revenue Authorities evidencing its residential status of Singapore and being entitled to avail the DTAA benefits. 2.2 The Ld. AO and the Ld. Panel has grossly erred on facts and in law by alleging that the Appellant lacks economic substance ... Singapore as per the Limitation of Benefit (LOB) clause in India-Singapore DTAA and denying the DTAA benefit without appreciating that the Appellant fulfills all conditions of LOB clause as prescribed under the DTAA. 2.3 The Ld. AO has grossly erred in ignoring the facts that the Appellant has obtained

Reverse Age Health Services Pte Ltd, Singapore vs. DCIT, Circle-3(1)(1), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1867/DEL/2022[2018-19]Status: DisposedITAT Delhi17 Feb 2023AY 2018-19

Bench: Sh. N. K. Billaiya & Sh. Anubhav Sharmaassessment Year: 2018-19 Reverse Age Health Dcit Services Pte Ltd. Vs Circle – 3 (1) (1) 31, Tanglin Road, 03-04, St. International Taxation Regis Residences, New Delhi Singapore- 247912 Pan No.Aaicr9878A (Appellant) (Respondent) Appellant By Sh. Deepak Chopra, Advocate Respondent By Sh. Sanjay Kumar, Sr. Dr Date Of Hearing: 13/02/2023 Date Of Pronouncement: 17/02/2023

Section 143Section 90

obtained from the Government of that country. Section 90(4) of the Act clarifies that a non-resident taxpayer is eligible to claim DTAA benefits. Article 1 of the India-Singapore DTAA states 80. that the tax treaty applies only to one or more person who is a resident

Lr2 Management K/S [As Foreign Commr. Manager/Agent of Principal Freight Beneficiary, Torm A/S], Jamnagar vs. The Deputy Comissioner of Income Tax, Inter. Taxa., Rajkot-Gujarat

In the result, appeal of the assessee is allowed

ITA 300/RJT/2017[2013-14]Status: HeardITAT Rajkot15 Feb 2023AY 2013-14

Bench: Smt.Annapurna Gupta & Smt. Madhumita Royassessment Year :2013-14 Lrs Management K/S (As Foreign Vs. Dcit (International Commercial Manager/ Agent Of Taxation), Rajkot. Principal Freight Beneficiary, Torm Gujarat. A/S) Correspondence Address: Interocean Shipping India P.Ltd. 301-Milestone P.N. Marg, Panchwati, Opp: Triveni Apartments Jamnagar 361 002. 0 अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assesseeby : Shri Manish Kanth, Ld.Ar Revenue By : Shri Shramdeep Sinha, Ld.Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 13/02/2023 घोषणा क" तार"ख /Date Of Pronouncement: 15/02/2023

For Appellant: Shri Manish Kanth, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 172(3)Section 250Section 271(1)(c)

Management K/s -Denmark, had filed various voyage final returns under section172(3) of the Act without paying freight taxes. The assessee had claimed DTAA benefit vis a vis Denmark for the said purpose, but the AO held that the assessee had wrongly claimed DTAA benefit and accordingly withdrew the same

ACIT (It) 3(1) (1), Mumbai vs. M/S. J.P.Morgan Indian Investment Company Mauritius Ltd, Mumbai

In the result, the CO filed by the assessee is allowed and appeal filed by the revenue becomes infructuous as dismissed

ITA 2382/MUM/2021[2016-17]Status: DisposedITAT Mumbai27 Sept 2022AY 2016-17

Bench: Shri Amit Shukla, Jm & Shri Amarjit Singh, Am आयकरअपीलसं./ I.T.A. No. 2382/Mum/2021 (ननधधारणवर्ा / Assessment Year: 2016-17) Acit-3(1)(1), M/S J. P. Morgan India R. No. 1628, 16Th Floor, Air Investment Company India Building, Nariman Mauritius Limited, बनाम/ Point, Mumbai-400 021 C/O- Srb & Associates Llp, Vs. 14Th Floor, The Ruby 29 Senapati Bapat Marg, Dadar (W), Mumbai-400 028 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aaacf0626J (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : & Cross Objection No. 41/Mum/2022 (ननधधारणवर्ा / Assessment Year: 2016-17) M/S J. P. Morgan India Acit-3(1)(1), Investment Company R. No. 1628, 16Th Floor, Air India Mauritius Limited, Building, Nariman Point, बनाम/ C/O- Srb & Associates Mumbai-400 021 Vs. Llp, 14Th Floor, The Ruby 29 Senapati Bapat Marg, Dadar (W), Mumbai-400 028 (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : Shri Milind Chavan, Ld. Dr प्रत्यथीकीओरसे/Respondent By : Shri Anish Thacker, Ld. Ar सुनवधईकीतधरीख/ : 18.05.2022 & 23.09.2022 Date Of Hearing घोर्णधकीतधरीख / : 27.09.2022 Date Of Pronouncement

For Appellant: Shri Milind Chavan, Ld. DRFor Respondent: Shri Anish Thacker, Ld. AR

Section 10(38)Section 143(3)Section 144C

computation of Capital gains. Total Income as per provisions of the Act is to be calculated to determine the tax liability and thereafter DTAA benefit is to be granted by negativing or reducing the tax liability. If there is no tax liability resorting to DTAA does not arise. DECISION

Barclays Capital Mauritius Ltd., Mumbai vs. ACIT, It 1(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 7209/MUM/2019[2016-17]Status: DisposedITAT Mumbai26 Sept 2022AY 2016-17

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.7209/मुं/2019 ("न.व. 2016-17) Barclays Capital Mauritius Limited. C/O. Srbc & Associates Llp 14Th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (West), Mumbai 400 028 Pan: Aaccb-4438-L ...... अपीलाथ" /Appellant बनाम Vs. Asstt. Commissioner Of Income Tax (It)-1(2)(1) 4Th Floor, Room No.427, Air India Building, Nariman Point, Mumbai 400 021. ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Nishant Thakkar, Advocate With Ms.Jasmin Amalsadvala & Shri Harshit Sangoi. ""तवाद" "वारा/Respondent By : S/Shri Milind S. Chavan & Nihar Samal सुनवाई क" "त"थ/ Date Of Hearing : 01/07/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 26/09/2022 आदेश/ Order

For Appellant: Shri Nishant Thakkar, Advocate with Ms.Jasmin Amalsadvala &For Respondent: S/Shri Milind S. Chavan & Nihar Samal

Section 143(3)

Authorized Representative of the assessee submitted that since the assessee is a tax resident of Mauritius, the assessee is entitled to the India- Mauritius DTAA benefit to the extent it is more beneficial than the provisions of the Act. The ld. Authorized Representative of the assessee contended that Article

Dy CIT (International Taxation)-1(2)(2), Mumbai vs. M/S. Bluebay Mauritus Investment Ltd., Mumbai

In the result, both the appeals of the Revenue are dismissed

ITA 1370/MUM/2021[2014-15]Status: DisposedITAT Mumbai29 Apr 2022AY 2014-15

Section 10(34)Section 143(3)Section 66Section 74(1)Section 80Section 90(2)

losses has to be determined as per the provisions of section 66 to section 80 of the income Tax Act. Thereafter DTAA benefit has to be granted as per section 90(2) on the Total Income so arrived. 2. Whether in the facts and circumstances of the case