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)

Hewlett Packard (India) Software Operation Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITTPA 961/BANG/2022[2018-19]Status: DisposedITAT Bangalore18 Jan 2023AY 2018-19

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am It(Tp)A No.961/Bang/2022 : Asst.Year 2018-2019 M/S.Hewlett Packard (India) The Deputy Commissioner Of Software Operation Pvt.Ltd. Income-Tax, Circle 3(1)(1) V. Survey No.192, Whitefield Road Bangalore. Mahadevapura Post Bengaluru – 560 048. Pan : Aaach7164B. (Appellant) (Respondent) Appellant By : Sri.Padam Chand Khincha, Ca Respondent By : Ms.Neera Malhotra, Cit-Dr Date Of Pronouncement : 18.01.2023 Date Of Hearing : 17.01.2023 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 30.07.2022 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2018-2019. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is A Company Engaged In Providing Software Development Support Service To Its Group Entities. For The Assessment Year 2018-2019, The Return Of Income Was Filed On 30.11.2018 Declaring Total Income At Rs.488,64,37,720. The Assessment Was Selected For Scrutiny & Notice U/S 143(2) Of The I.T.Act Was Issued On 23.09.2019. During The Course Of Scrutiny Assessment, The Case Was Referred To The Transfer

For Appellant: Sri.Padam Chand Khincha, CAFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(2)Section 143(3)Section 37Section 37(1)Section 92C

Cma Cgm Sa, Mumbai vs. Dy.Commm of Income Tax (International Taxationa)-2(1)(1), Mumbai

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

ITA 1820/MUM/2022[2018-19]Status: DisposedITAT Mumbai16 Jan 2023AY 2018-19

Bench: Shri Aby T. Varkey, Jm & Shri M. Balaganesh, Am आयकर अपील सं/ I.T.A. No. 1820/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2018-19) बिधम/ Cma Cgm Sa Dcit, (International C/O Cma Cgm Agencies Taxation) Circle-2(1)(1) Vs. Room No. 1713, 17Th (India) Pvt. Ltd. One International Center, Floor, Air India Building, Tower 3, 8Th Floor, Senapati Nariman Point, Mumbai- Bapat Marg, Elphinstone 400021. Road West, Mumbai- 400013. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcc9048G (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. Assessee By: Shri Rajesh Poojari/Jasmin Amalsadvala Revenue By: Shri Milind Chavan (Sr. Dr) सुनवाई की तारीख / Date Of Hearing: 06/12/2022 घोषणा की तारीख /Date Of Pronouncement: 16/01/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: The Present Appeal Has Been Filed By The Assessee Challenging The Final Assessment Order Dated 19/05/2021, Passed Under Section 143(3) R/W Section 144C(13) Of The Income Tax Act, 1961 (‘The Act’), Pursuant To The Directions Dated 12/05/2021, Issued By The Learned Dispute Resolution Panel (“Ld. Drp”) Under Section 144C(5) Of The Act, For The Assessment Year 2018–19. 2. In This Appeal, Assessee Has Raised Following Grounds: “General 1. Erred In Assessing The Total Income Of The Appellant At Inr 46,94,25,922/- As Against Revised Income Of Inr 52,35,195/- As Per Revised Computation Submitted By The Appellant During The Course Of Assessment Proceedings;

For Appellant: Shri Rajesh Poojari/JasminFor Respondent: Shri Milind Chavan (Sr. DR)
Section 143(3)Section 144C(13)Section 144C(5)Section 44B

Essilor India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

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

ITTPA 888/BANG/2022[2018-19]Status: DisposedITAT Bangalore12 Jan 2023AY 2018-19

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am It(Tp)A No.888/Bang/2022 : Asst.Year 2018-2010 M/S.Essilor India Private Limited The Deputy Commissioner Of 10Th Floor, Prestige Trade Tower Income-Tax, Circle 2(1)(1) V. Bangalore. 46, Palace Road, High Grounds Sampangi Rama Nagar Bengaluru – 560 001. Pan : Aaace4623J. (Appellant) (Respondent) Appellant By : Sri.Chavali Narayan, Ca Respondent By : Ms.Neera Malhotra, Cit-Dr Date Of Pronouncement : 12.01.2023 Date Of Hearing : 11.01.2023 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 28.07.2022 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2018-2019. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is Engaged In The Trading Of Ophthalmic Lenses, Optical Meters & Processing Of Semi-Finished Ophthalmic Lenses. For The Assessment Year 2017-2018, The Return Of Income Was Filed On 30.11.2018 Declaring Loss Of Rs.50,15,147. The Assessment Was Selected For Scrutiny & Notice U/S 143(2) Of The I.T.Act Was Issued On 22.09.2019. During The Course Of Assessment Proceedings, The Assessing

For Appellant: Sri.Chavali Narayan, CAFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143(2)Section 143(3)Section 14ASection 32(1)(iia)Section 92C