Section 144C(13) of the Income Tax Act

Income-tax Act, 2025: s.275

Section 144C(13) falls under section 144C of the Income-tax Act, 1961, which corresponds to section 275 (Reference to Dispute Resolution Panel) of the Income-tax Act, 2025.

Read section 275 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 144C(13) is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 of the 3,426 judgments on BharatTax that turn on this section.

Leading authorities on Section 144C(13)

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.

Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT
374 ITR 118 · 2015 · High Court
499
citing judgments

The existence of an international transaction for Advertising and Marketing Promotion (AMP) expenditure requires the revenue to discharge the burden of proof. An explanation inserted under Section 92B does not automatically make AMP expenditure an international transaction.

CIT v. EKL Appliances Ltd.
345 ITR 241 · 2012 · High Court
422
citing judgments

Transfer pricing adjustments for outstanding receivables are permissible only if the Tax Officer establishes, through analysis over a period, a pattern indicating an international transaction intended to benefit an associated enterprise. The Tax Officer cannot question purely business decisions like royalty payments or exceed jurisdiction by applying cost-benefit analysis to determine the arm's length price of services.

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.

DIT v. Morgan Stanley & Co.
292 ITR 416 · 2007 · Supreme Court
360
citing judgments

A Permanent Establishment (PE) signifies a foreign enterprise's virtual projection into another country, with a fixed place PE existing where an MNE's business is wholly or partly carried on. A dependent agent PE requires the agent to act as such and/or have the authority to conclude contracts for the foreign enterprise under DTAA provisions.

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.

21. In SB Gurbaksh Singh v. Union of India
2 SCC 181 · 2007 · Supreme Court
318
citing judgments
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.

Judgments on Section 144C(13)

Nec Technologies India P.Ltd (Formerly Known As Nec India Pvt. Ltd.), New Delhi vs. Addi. CIT, Special Range-6, New Delhi

In the result, the appeal of the assessee partly allowed

ITA 6982/DEL/2019[2015-16]Status: DisposedITAT Delhi16 Jun 2023AY 2015-16

Bench: Shri Chandra Mohan Garg & Shri M. Balaganeshassessment Year: 2015-16 M/S Nec Technologies India P. Ltd., The Addl. Cit, Special Range-6, C.R (Formerly Knows As Nec India P Ltd.), Building, New Delhi 110002 101 To 116, 1St Floor, Splendor Forum, Vs. Plot No. 3, District Centre, Jasola, New Delhi 110025 Pan Aaccn 3496 J (Appellant) (Respondent) For Assessee : Shri Ajay Vohra, Sr. Adv. Ms. Somya Jain, Ca Revenue For : Ms. Sarita Kumari, Cit(Dr) Date Of Hearing : 24.05.2023 Date Of Pronouncement : 16.06.2023 Order Per Chandra Mohan Garg, J.M. This Appeal Has Been Filed Against The Order Of Dispute Resolution Panel-2, New Delhi Dated 21.05.2019 For Ay 2015-16. 2. The Grounds Of Assessee Are As Follows:- 1. That The Order Passed By The Joint Commissioner Of Income Tax, Special Ranged (Ld. Cit(A) Ao') Us 143(3) Read With Section 144C(13) Of The Income Tax Act, 1961 ('Act) In The Name Of "Nec Technologies India Pvt. Ltd. (Formerly Nec India Pvt. Ltd.), The Amalgamating Entity, Which Had Ceased To Exist In The Eyes Of Law, Is Beyond Jurisdiction, Illegal & Bad In Law 2. That On The Facts & Circumstances Of The Case & In Law, The Impugned Order Is Barred By Limitation, Bad In Law & Therefore, Liable To Be Quashed. 3. The Ld. Ao Has Erred In Disallowing Advances (I.E. Input Cenvat Credit) To The Tune Of Rs. 91,81,394/- Which The Appellant Was Constrained To Write Off During The Year Under Consideration As Per The Direction Of Service Tax Department;

For Appellant: Shri Ajay Vohra, Sr. Adv
Section 144C(13)Section 274Section 30Section 36Section 37(1)

Cma Cgm Sa, Mumbai vs. Assistant Commissioner of Income Tax, (International Taxation) Circle 2(1)(1), Mumbai

In the result, additional grounds of appeal filed by the assessee are allowed for statistical purpose

ITA 833/MUM/2023[2020-21]Status: DisposedITAT Mumbai12 Jun 2023AY 2020-21

Bench: Shri Vikas Awasthy & Shri Gagan Goyal आअसं. 833/मुं/2023 ("न.व. 2020-21) Cma Cgm Sa C/O. Cma Cgm Agencies (India) Private Limited, Indiabulls Finance Centre, Tower -3, 8Th Floor, Senapati Bapat Marg, Elphinstone(W), Mumbai – 400 013. Pan: Aabcc-9048-G ...... अपीलाथ" /Appellant बनाम Vs. The Asstt. Commissioner Of Income Tax (International Taxation) 2(1)(1)Mumbai Room No.1713, 17Th Floor, Air India Building, Nariman Point, Mumbai 400 021 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Rajesh Poojari & Ms. Jasmin Amalsadvala ""तवाद" "वारा/Respondent By : Shri Soumendu Kumar Dash सुनवाई क" "त"थ/ Date Of Hearing : 31/05/2023 घोषणा क" "त"थ/ Date Of Pronouncement : /06/2022 आदेश/ Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 19/01/2023 Passed U/S. 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 [ In Short ‘The Act], For The Assessment Year 2020-21. 2 2. In Appeal The Assessee Has Raised 22 Grounds. The Gist Of Grounds Of Appeal Is As Under:

For Appellant: Shri Rajesh Poojari &For Respondent: Shri Soumendu Kumar Dash
Section 143(3)Section 234ASection 234BSection 270

Take Solutions Limited, Chennai vs. ACIT Corporate Circle 3(1), Chennai

The appeal stand partly allowed for statistical purposes

ITTPA 43/CHNY/2022[2018-2019]Status: DisposedITAT Chennai06 Jun 2023AY 2018-2019

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./It(Tp)A No.43/Chny/2022 (िनधा2रणवष2 / Assessment Year: 2018-19) M/S Take Solutions Ltd. Acit बनाम/ 27, Tank Bund Road, Nungambakkam, Corporate Circle-3(1) Vs. Chennai-600 034. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabct-3684-M (अपीलाथ"/Appellant) : ("#थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri K. Prasanna (C.A) – Ld.Ar "#थ"कीओरसे/Respondent By : Dr. S. Palanikumar (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 06-06-2023 घोषणाकीतारीख/Date Of Pronouncement : 06-06-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2018-19 Arises Out Of Final Assessment Order Dated 26-07-2022 Passed By Ld. Assessing Officer (Ao) U/S 143(3) R.W.S. 144C(13) Pursuant To The Directions Of Ld. Dispute Resolution Panel-2, Bengaluru (Drp) U/S 144C(5) Dated 08-06-2022. Since The Assessee Carried Out Certain International Transactions With Its Associated Enterprises (Ae), A Draft Order Was Passed U/S.144C On 28-09-2021 & International Transactions Were Subjected To Determination Of Arm’S Length Price (Alp) Before Ld.

For Appellant: Shri K. Prasanna (C.A) – Ld.ARFor Respondent: Dr. S. Palanikumar (CIT) – Ld. DR
Section 143(3)Section 144CSection 144C(5)Section 14ASection 92BSection 92C

M/S Herbalife International India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITTPA 905/BANG/2022[2018-19]Status: DisposedITAT Bangalore06 Jun 2023AY 2018-19

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 905/Bang/2022 Assessment Year : 2018-19 M/S. Herbalife International India The Deputy Pvt. Ltd., Commissioner Of Rmz Pinnacle, No. 15, Income-Tax, Commissariat Road, Circle – 3(1)(1), Bengaluru – 560 025. Bangalore. Vs. Pan: Aaach8025R Appellant Respondent : Shri Percy Pardiwala, Assessee By Sr. Advocate Revenue By : Shri D.K. Mishra, Cit (Dr) Date Of Hearing : 01-06-2023 Date Of Pronouncement : 06-06-2023 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 27.07.2022 Passed By The Assessment Unit For A.Y. 2018-19 On Following Grounds Of Appeal: “The Grounds Mentioned Herein By The Appellant Are Without Prejudice To One Another 1. On The Facts & In Circumstances Of The Case & In Law, The Assessment Order Framed Under Section 143(3) Read With Section 144C(13) & Section 144B Of The Income-Tax Act, 1961 ('The Act) Passed By The Assessment Unit, Income-Tax Department ('Learned Assessing Officer' Or 'Learned Ao') Dated July 27, 2022, To The Extent Prejudicial To The Appellant, Is Bad In Law, Contrary To The Facts & Circumstances Of The Case & Is Liable To Be Quashed.

For Respondent: Shri Percy Pardiwala
Section 143(3)Section 144BSection 144C(13)Section 92BSection 92C