IBM ISRAEL LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

TDS under section 192 in respect of all the salaries of the seconded employees, in respect of which costs were reimbursed to the IBM foreign companies; Thereafter, reassessment/ assessment proceedings were conducted on the IBM foreign entities and reassessment orders under section 143(3) read with section 147 of the Act/ assessment order under section

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

TDS under section 192 in respect of all the salaries of the seconded employees, in respect of which costs were reimbursed to the IBM foreign companies; Thereafter, reassessment/ assessment proceedings were conducted on the IBM foreign entities and reassessment orders under section 143(3) read with section 147 of the Act/ assessment order under section

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\n- The CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\n- The CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nTherefore, the same

IBM CHINA HONG KONG LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1) INTERNATIONAL TAXATION, BANGALORE

In the result, the appeal filed by assessee stands allowed for statistical purposes

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(It)A No. 2884/Bang/2017 Assessment Year : 2008-09 M/S. Belgacom The Deputy International Carrier Commissioner Of Services Sa, Income Tax, Rue Lebeau 4, Circle -1(1), 1000 Brussels, International Taxation, Vs. Belgium. Bangalore. Appellant Respondent : Shri V. Sridharan, Senior Assessee By Advocate : Shri Pradeep Kumar, Cit-Dr & Revenue By Smt. Vandana Sagar, Cit-Dr Date Of Hearing : 16-03-2022 Date Of Pronouncement : 26-04-2022 Order Per Beena Pillaipresent Appeal Is Filed By Non Resident Assessee Against Order Dated 30.10.2017 Passed By Dcit (It), Circle -1(1), Bangalore On Following Grounds Of Appeal: “Being Aggrieved By The Order Of The Learned Dcit, Circle - 1(1), International Taxation, Bengaluru ('A0'), Read With The Order Of The Learned Dispute Resolution Panel ('Drp*), Bengaluru, The Assessee Begs To Prefer The Present Appeal On The Following Grounds: 1. The Learned Ao Erred In Exercising, Jurisdiction U/S 147 Of The Act In The Case Of The Appellant. 2. The Lower Authorities Erred In Holding That A Sum Of Rs. 6,87,13,119/- Received By The Appellant From Its Customer In India Is In The Nature Of 'Royalty' Within The Meaning Of Section 9(1)(Vi) Of The It Act & Accordingly Taxable In India Under The It Act.

TDS) reported in (2016) 67 taxmann.com 223. He submitted that the issue considered therein was in respect of payment towards call interconnectivity charged for call transmission on foreign network. He submitted that the Tribunal therein, on applying ratios pronounced in the above referred decisions, held it not as Royalty. 25. Whether the serviced rendered could be treated as Royalty under

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\nThe CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nProvisions of section

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\n\n- The CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments

IBM DEUTSCHLAND GMBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\n- The CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nTherefore, the same

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\nThe CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nThe

IBM OSTERREICH INTIONATIONALE BUROMASCHINEN GESELLSCHAFT MBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\n- The CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\n\nProvisions

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

The appeals of the assessees are allowed

TDS under\nsection 192 in respect of all the salaries of the seconded employees,\nin respect of which costs were reimbursed to the IBM foreign\ncompanies; Thereafter, reassessment/ assessment proceedings were\nconducted on the IBM foreign entities and reassessment orders\nunder section 143(3) read with section 147 of the Act/assessment\norder under section 143(3) of the Act were

IBM AUSTRALIA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

139 taxmann.com 595\n(Karnataka HC), whereby the\nAssessee had presented an application\nunder section 197, in respect to\ndeductibility of tax on similar receipts\nThe CIT(A) highlighted that section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nProvisions of section