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)

Lubrizol India Private Limited, Mumbai vs. NFAC, Delhi

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 586/MUM/2022[2017-18]Status: DisposedITAT Mumbai30 Jun 2023AY 2017-18

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.1464/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2015-16) Lubrizol India Pvt. Ltd. Acit, Circle-3(4) बिधम/ Plant 9/3, Thane-Belapur Aayakar Bhavan, Vs. Road, Turbhe, Navi Maharishi Karve Road, Mumbai-400705. Mumbai-400020. आयकर अपील सं/ I.T.A. No.586/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2017-18) Lubrizol India Pvt. Ltd. बिधम/ National Faceless Plant 9/3, Thane-Belapur Assessment Centre, Delhi. Vs. Road, Turbhe, Navi Mumbai-400705. आयकर अपील सं/ I.T.A. No.1576/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2018-19) Lubrizol India Pvt. Ltd. Dcit/Acit, Circle-3(4) बिधम/ Plant 9/3, Thane-Belapur Mumbai. Vs. Road, Turbhe, Navi Mumbai-400705. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacl0126H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Niraj Sheth/Ms. Urvi Mehta/Abdulkadir Jawadwala Revenue By: Shri Aditya M Rai (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 22/06/2023 घोषणा की तारीख /Date Of Pronouncement: 30/06/2023

For Appellant: Shri Niraj Sheth/Ms. UrviFor Respondent: Shri Aditya M Rai (Sr. AR)
Section 143(3)Section 92C(1)

M/S. Lubrizol India Pvt. Ltd, Navi Mumbai vs. ACIT Circle 3(4), Mumbai

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 1464/MUM/2021[2015-16]Status: DisposedITAT Mumbai30 Jun 2023AY 2015-16

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.1464/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2015-16) Lubrizol India Pvt. Ltd. Acit, Circle-3(4) बिधम/ Plant 9/3, Thane-Belapur Aayakar Bhavan, Vs. Road, Turbhe, Navi Maharishi Karve Road, Mumbai-400705. Mumbai-400020. आयकर अपील सं/ I.T.A. No.586/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2017-18) Lubrizol India Pvt. Ltd. बिधम/ National Faceless Plant 9/3, Thane-Belapur Assessment Centre, Delhi. Vs. Road, Turbhe, Navi Mumbai-400705. आयकर अपील सं/ I.T.A. No.1576/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2018-19) Lubrizol India Pvt. Ltd. Dcit/Acit, Circle-3(4) बिधम/ Plant 9/3, Thane-Belapur Mumbai. Vs. Road, Turbhe, Navi Mumbai-400705. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacl0126H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Niraj Sheth/Ms. Urvi Mehta/Abdulkadir Jawadwala Revenue By: Shri Aditya M Rai (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 22/06/2023 घोषणा की तारीख /Date Of Pronouncement: 30/06/2023

For Appellant: Shri Niraj Sheth/Ms. UrviFor Respondent: Shri Aditya M Rai (Sr. AR)
Section 143(3)Section 92C(1)

Juniper Networks Pvt Ltd., Mumbai vs. Asst CIT Circle-2 (4), Mumbai

In the result, appeal filed by the assessee is allowed to be withdrawn

ITA 7755/MUM/2019[2015-16]Status: DisposedITAT Mumbai30 Jun 2023AY 2015-16

Bench: Shri Aby T. Varkey, Jm & Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.7755/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) Juniper Networks India Pvt. बिधम/ Acit, Circle-2(4) Ltd. Room No. 802, 8Th Floor, Vs. Unit 103, Platina, 1St Floor, Pratishtha Bhavan, Old Plot No. C-59, G Block, Cgo Old Annexe, M. K. Bandra Kurla Complex Road, Mumbai-400020. Road, Bandra (East), Mumbai-400051. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacj8542K (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Komal Mehta Revenue By: Shri Jayant B Jhaveri (Dr) सुनवाई की तारीख / Date Of Hearing: 19/06/2023 घोषणा की तारीख /Date Of Pronouncement: 30/06/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Company Against The Order Passed U/S 143(3) R.W.S 144C(13) Of The Income Tax Act, 1961 (Hereinafter “The Act”) By Ao Dated 17.10.2019 For Ay 2015-16 Pursuant To The Ld. Dispute Resolution Panel (Drp) Direction On 21.08.2019. 2. The Assessee In This Case Had Filed Its Return Of Income Declaring Total Income Of Rs.174,96,10,270/-. Later On, The Case Was Selected For Scrutiny & The Ao Referred Certain Issues To The Transfer Pricing Officer (Tpo) Who Made Adjustment Of Rs.74,31,05,490/- For Software Development Services (Sds), Information Technology Enable Services (Ites) & Mark-Up On Employee Stock Purchase Plan (Espp). According To The Ld. Ar, The Assessee In Order To Resolve The Transfer Pricing Disputes In Respect Of Transactions With Its Associated Enterprise (Ae) (I.E. M/S. Jni), It Had Approached The Competent Authorities As Per Article 27 (Map) Of The India United States Tax

For Appellant: Ms. Komal MehtaFor Respondent: Shri Jayant B Jhaveri (DR)
Section 143(3)

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

In the result, the appeal filed by the assessee stands partly allowed as indicated hereinabove

ITA 192/BANG/2022[2017-18]Status: DisposedITAT Bangalore16 Jun 2023AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuit(Tp)A No. 192/Bang/2022 Assessment Year : 2017-18 M/S. Carl Zeiss India (Bangalore) Pvt. Ltd., The Deputy Plot No. 3, Jigani Link Road, Commissioner Of Bommasandra Industrial Income Tax, Area, Circle 2 (1)(1), Bengaluru – 560 099. Vs. Bengaluru. Pan: Aadcc6152H Appellant Respondent : Shri Nageshwar Rao, Assessee By Advocate Revenue By : Ms. Neera Malhotra, Cit-Dr Date Of Hearing : 12-04-2023 Date Of Pronouncement : 16-06-2023 Order Per Beena Pillaipresent Appeal Is Filed By The Assessee Against Assessment Order Dated 25.01.2022 Passed By Nfac, Delhi For A.Y. 2017-18 On Following Grounds Of Appeal: “Based On The Facts & Circumstances Of The Case & In Law, Carl Zeiss India (Bangalore) Private Limited (Hereinafter Referred To As "Carl Zeiss India" Or "The Appellant"), Respectfully Craves Leave To Prefer An Appeal Against The Order Passed By The Additional / Joint / Deputy / Assistant Commissioner Of Income Tax/ Income- Tax Officer, National Faceless Center, Delhi (Hereinafter Referred To As "Ld. Assessing Officer" Or The "Ld. Ao"), Dated 25 January 2022 For The Assessment Year ("Ay")

For Respondent: Shri Nageshwar Rao
Section 143(3)Section 144BSection 144C(13)Section 144C(5)

Ppg Coating India P. Ltd, Mumbai vs. DCIT Cir 13(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2168/MUM/2017[2012-13]Status: DisposedITAT Mumbai16 Jun 2023AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. (Tp) No.2168/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2012-13) Ppg Coatings India Pvt. बिधम/ Dcit, Circle-13(1)(1) Ltd. Mumbai Vs. (Now Merged With Ppg Asian Paints Pvt. Ltd.) The Centrium Phoenix Market City, Lbs, Marg, Kurla West, Mumbai- 400070. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcs4378K (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Percy Pardiwala Revenue By: Shri Samuel Pitta (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 02/05/2023 घोषणा की तारीख /Date Of Pronouncement: 16/06/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Assessing Officer Dated 25.01.2017 Pursuant To Dispute Resolution Panel (Drp)-02, Mumbai Passed 27.12.2016 Passed U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. At The Outset, The Ld. Senior Counsel For The Assessee Drew Our Attention To The Additional Grounds Of Appeal Raised By The Assessee, Which According To Him Is A Legal Issue & Which Need To Be Adjudicated First, Since If The Legal Issue Is Upheld Then, It Goes To The Root Of The Jurisdiction Of The Ao To Have Passed The Final Assessment Order. The Legal Issue Raised By Assessee Reads As Under;-

For Appellant: Shri Percy PardiwalaFor Respondent: Shri Samuel Pitta (Sr. AR)
Section 143(3)Section 92C