“multilateral instrument”

Factive Limited, Mumbai vs. Assistant Commissioner of Income Tax, (International Taxation )-2(3)(1), Mumbai

In the result, both the appeals are partly allowed

Bench: Shri Saktijit Dey & Shri Girish Agrawal & Factive Limited Asst. Cit(It)-2(3)(1) C/O. Price Waterhouse & Co. Llp 609, 6Th Floor, Kautilya Bhavan, 252, Veer Savarkar Marg, C-41, C-43, G Block, Vs. Shivaji Park, Dadar, Bandra Kurla Complex, Mumbai-400 028 Bandra (E), Mumbai Pan/Gir No. Aaccf 5745 J (Appellant) : (Respondent) : Shri Dhanesh Bafna A/W Appellant By Shri Yogesh Malpani & Ms. Kinjal Patel Respondent By : Shri Krishna Kumar (Sr. Dr) Date Of Hearing : 21.08.2025 Date Of Pronouncement : 15.09.2025 O R D E R Per Saktijit Dey: Captioned Appeals By The Assessee Are Against The Final Assessment Orders Passed U/S. 143(3) R.W.S 144C(13) Of The Income Tax Act, 1961 (‘The Act’ For Short), In Pursuance To The Directions Of Learned Dispute Resolution Panel (‘Ld. Drp' For Short) & Pertains To The Assessment Years (A.Y.) 2021-22 & 2022-23. 2. Since The Substantive Issue On Merits, Arising In The Appeals Are More Or Less Common In Both The Appeals, We Propose To Take Up Ita No. 4706/Mum/2023, Pertaining To A.Y. 2021-22, As The Lead Appeal. (A.Ys. 2021-22 & 2022-23) Factive Limited Vs. Asst. Cit(It) 3. Ground Nos. 1, 2 & 3 Are Basically On Legal Issues, Challenging The Validity Of The Final Assessment Order. At The Outset, Ld. Counsel Appearing For The Assessee Submitted That He Would Prefer To Address The Issues On Merits And, If Warranted, May Press The Legal Grounds.

facts and in the circumstances of the case and in law, the Learned DRP erred in invoking the provisions of the Multilateral Instrument ('MLI') and also, holding that the exclusions under Article 5(3) of the DTAA will not apply to the Appellant. 7. Without prejudice to the above ... DAPE’ for short) of the assessee in India in the form of DJCIPL. Of-course, the peripheral issues relating to applicability of provisions of Multilateral Instrument (‘MLI’ for short) to Article 5(3) India-UK Treaty and attribution of profit to PE are closely linked to the second issue relating

Tfdac Ireland II Limited, Ireland vs. Deputy Commissioner of Income Tax International Tax Circle 4(1)(2) Mumbai, Mumbai

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Dae(Sy22) Leasing (Ireland)41, Designated Activity Company, Mumbai vs. Assistant Commissioner of Income Tax International Taxation Circle 2(1)(2), Mumbai

Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Dae (Sabs) Leasing Ireland 43 Designated Activity Company, Mumbai vs. Assistant Commissioner of Income Tax Int Tax.Circle 2(1)(2), Mumbai

In the result, appeals of the assessees are allowed and

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Dae (Sabs) 10296 Ireland Designated Activity Company, Mumbai vs. Assistant Commissioner of Income Tax (Int Taxation), Cirlce 2(1)(2), Mumbai

In the result, appeals of the assessees are allowed and

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Sky High Xliii Leasing Company Limited, Ireland vs. Assistant Commissioner of Income Tax Int Tax Circle 4 (2) (1) Mumbai, Mumbai

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Ortus Aircraft Lease 5( Dublin) Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(2)(2) International Taxation, Mumbai

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed

Sunflower Aircraft Leasing Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 4(2)(2) International Tax, Mumbai

In the result, the appeal of the assessee stands allowed

denied the assessee's claim to treaty protection. He invoked the Principal Purpose Test (“PPT”) as enshrined in Articles 6 and 7 of the Multilateral Instrument ("MLI"), alleging that the assessee had failed to discharge the burden of proving that the principal purpose of the leases was other than obtaining

Ortus Aircraft Lease 6(Dublin) Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(2)(2) International Taxation, Mumbai

Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)

Whether the directions issued by the learned DRP travel beyond its jurisdiction; (c) Whether Articles 6 and 7 of the Multilateral Instrument (“MLI”), embodying the Principal Purpose Test (“PPT”), apply to the facts and operate to deny treaty benefits; (d) The true characterisation and taxability of lease rentals and supplementary ... calling upon the assessee to explain why the treaty benefits should not be denied by invoking Articles 6 and 7 of the Multilateral Instrument (“MLI”), on the premise that the principal purpose of the assessee‟s incorporation was to obtain the benefits of the India–Ireland DTAA. In its detailed