Section 90(2) of the Income Tax Act

Income-tax Act, 2025: s.159

Section 90(2) falls under section 90 of the Income-tax Act, 1961, which corresponds to section 159 (Agreement with foreign countries or specified territories and adoption by Central Government of Agreement between Specified associations for double taxation relief) of the Income-tax Act, 2025.

Read section 159 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 90(2) is CIT v. De Beers India Minerals (P.) Ltd. (346 ITR 467), cited in 371 of the 387 judgments on BharatTax that turn on this section.

Leading authorities on Section 90(2)

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.

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.

Skycell Communications Ltd. v. DCIT
251 ITR 53 · 2001 · High Court
253
citing judgments

Technical services involve human intervention and expertise, not just routine or machine-based operations. Routine customer support and standard facility provision through technology do not constitute technical services under the Act.

Shivsagar Veg Restaurant v. ACIT
317 ITR 433 · 2009 · High Court
202
citing judgments

Orders that are inordinately delayed are liable to be recalled and heard afresh, and the Appellate Tribunal President should frame guidelines for timely disposal of appeals.

CIT v. Visakhapatnam Port Trust
144 ITR 146 · 1983 · High Court
124
citing judgments

Sections 4 and 5 of the Income Tax Act, which define total income and chargeability, are subject to Section 90, meaning that Double Taxation Avoidance Agreements (DTAAs) override the Act's provisions in case of a conflict.

CIT v. IBM India Ltd.
357 ITR 88 · 2013 · High Court
88
citing judgments

Expenditure on application software, which enhances business efficiency and requires a computer system to function, constitutes revenue expenditure rather than acquisition of a capital asset, even if it provides an enduring benefit.

CIT v. Hariprasad & Company Pvt. Ltd.
99 ITR 118 · 1975 · Supreme Court
78
citing judgments

The terms 'income' or 'profits and gains' are inclusive of losses, signifying that losses are 'minus income' to be factored into the computation of taxable income. Therefore, set-off and carry forward provisions for losses apply exclusively to taxable income or gains and cannot be pressed into service against non-taxable gains, such as those exempt under a DTAA or other specific provisions.

CIT (Intl.Taxn) v. Samsung Electronics Co. Ltd.
203 Taxmann 477 · 2011 · High Court
65
citing judgments
Trib.) Giesecke & Devrient 16.994%). India Pvt Ltd. v. ACIT
120 Taxmann.com 338 · 2020 · High Court
52
citing judgments

The provisions of a Double Taxation Avoidance Agreement (DTAA) would prevail over the domestic law rate of Dividend Distribution Tax (DDT) under Section 115-O.

Judgments on Section 90(2)

Arumugam Rajasekar, Chennai vs. International Tax Ward 2(1), Chennai

Appeal of the assessee is allowed

ITITA 1/CHNY/2025[2018-19]Status: DisposedITAT Chennai31 Jul 2025AY 2018-19

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S. R. Raghunathaआयकर अपील सं./It(It)A No.1/Chny/2025 निर्धारण वर्ा/Assessment Year: 2018-19 V. Arumugam Rajasekar Income Tax Officer, No.Unit 3052, Tower-3, Prestige Ward International Tax-2(1), Downtown 17 Vembuliamman Kovil Chennai. Street, Kalaignar Karunanidhi Nagar S.O, Kalaignar Karunanidhi Nagar, Chennai-600 078. [Pan: Aidpr2758P] (प्रत्यर्थी/Respondent) (अपीलधर्थी/Appellant) : अपीलधर्थी की ओर से/ Appellant By Mr.Prakash Hegde, C.A (Virtual) & Mr.Srinath Roa, C.A, : प्रत्यर्थी की ओर से /Respondent By Ms.Gouthami Manivasagam, Jcit सुिवधईकीतधरीख/Date Of Hearing : 02.07.2025 : घोर्णधकीतधरीख /Date Of Pronouncement 31.07.2025

Section 143(3)Section 250Section 5Section 5(2)Section 90(2)

Ataat Rahat Khan, Gurgaon vs. DCIT/ACIT-Int-Tax Gurgaon, Gurgaon

ITA 1801/DEL/2023[2017-18]Status: DisposedITAT Delhi22 Jul 2025AY 2017-18

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh[Assessment Year: 2017-18]

Section 115BSection 144Section 144BSection 147Section 148Section 151Section 270ASection 271Section 69

Hdfc Ergo General Insurance Company Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 6(2), Mumbai

In the result, all the appeals by the assessee are allowed for statistical purpose

ITA 2869/MUM/2025[2017-18]Status: DisposedITAT Mumbai16 Jul 2025AY 2017-18

Bench: Shri Saktijit Dey, Vp & Shri Prabhash Shankar, Am

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Hemanshu Joshi
Section 115Section 115OSection 143(3)Section 244ASection 90(2)

Hdfc Ergo General Insurance Company Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 6(2), Mumbai

In the result, all the appeals by the assessee are allowed for statistical purpose

ITA 2868/MUM/2025[2016-17]Status: DisposedITAT Mumbai16 Jul 2025AY 2016-17

Bench: Shri Saktijit Dey, Vp & Shri Prabhash Shankar, Am

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Hemanshu Joshi
Section 115Section 115OSection 143(3)Section 244ASection 90(2)

Hdfc Ergo General Insurance Company Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 6(2), Mumbai

In the result, all the appeals by the assessee are allowed for statistical purpose

ITA 2867/MUM/2025[2015-16]Status: DisposedITAT Mumbai16 Jul 2025AY 2015-16

Bench: Shri Saktijit Dey, Vp & Shri Prabhash Shankar, Am

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Hemanshu Joshi
Section 115Section 115OSection 143(3)Section 244ASection 90(2)

Hdfc Ergo General Insurance Company Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 6(2), Mumbai

In the result, all the appeals by the assessee are allowed for statistical purpose

ITA 2866/MUM/2025[2014-15]Status: DisposedITAT Mumbai16 Jul 2025AY 2014-15

Bench: Shri Saktijit Dey, Vp & Shri Prabhash Shankar, Am

For Appellant: Shri Madhur AgrawalFor Respondent: Shri Hemanshu Joshi
Section 115Section 115OSection 143(3)Section 244ASection 90(2)

Orient Overseas Container Line Limited, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation) Circle 3(2)(2), Mumbai

ITA 2129/MUM/2025[2022-23]Status: DisposedITAT Mumbai25 Jun 2025AY 2022-23
For Appellant: Shri Rajan Vora; Shri Lekh MehtaFor Respondent: Shri Krishna Kumar
Section 115JSection 143(2)Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153Section 244ASection 44B

DCIT (It) -3(1)(1), Mumbai vs. Jp Morgan India Smaller Companies Fund, Mumbai

Accordingly, we do not find any infirmity in the order passed by the CIT(A). Ground No. 1, 2 and 3 raised by the Revenue are dismissed

ITA 1028/MUM/2025[2016-17]Status: DisposedITAT Mumbai12 Jun 2025AY 2016-17

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SMT. RENU JAUHRI (Accountant Member)

For Appellant: Shri Anish Thacker, Shri PranayFor Respondent: Shri Krishna Kumar
Section 143(3)Section 144CSection 144C(3)Section 250Section 90(2)

Ishares Msci All Country Asia Ex Japan Etf(As A Successor to Ishares Msci All Country Asia Ex Japan Mauritius Co), Mumbai vs. DCIT (Int)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2154/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Section 143(3)Section 144C(13)

Ishares Core Msci Em Imi Ucits Etf, Mumbai vs. DCIT (Int)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2152/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Msci Emerging Markets Etf (As A Successor to Ishares Emerging Markets Index Mauritius Co ), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2150/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares India 50 Etf (As A Successor to Ishares India Mauritius Co ), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2149/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Schwab Emerging Markets Equity Etf, Mumbai vs. Deputy Commissioner of Income Tax International Taxation -4(2)(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2134/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Ishares Core Msci Emerging Markets Etf (As A Sucessor to Ishares Core Emerging Markets Mauritius Company), Mumbai vs. Deputy Commissioner of Income Tax (International Taxation) 2(2)(2), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2085/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

Deputy Commissioner of Income Tax, Gurgaon vs. Hays Business Solutions Private Limited, Gurgaon

The appeal of the Revenue is dismissed

ITA 3003/DEL/2023[2014-15]Status: DisposedITAT Delhi29 May 2025AY 2014-15

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

Section 143(2)Section 143(3)Section 195(1)Section 250Section 37Section 40

Altair Engineering Inc., United States vs. DCIT, International Taxation, Circle-1(1), Bengaluru

In the result, the appeal of the assessee is partly allowed

ITITA 215/BANG/2025[2022-23]Status: DisposedITAT Bangalore27 May 2025AY 2022-23

Bench: Shri Prashant Maharishi & Shri Soundararajan K.

For Appellant: Shri Tata Krishna, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 144C(8)Section 153(1)Section 9(1)(vi)Section 90(2)

Sterling and Wilson Renewable Energy Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 14(1)(2), Mumbai

ITA 1748/MUM/2025[2020-21]Status: DisposedITAT Mumbai22 May 2025AY 2020-21

Bench: Smt. Beena Pillai(Jm) & Shri Omkareshwar Chidara(Am) Sterling & Wilson Acit, Circle-14(1)(2) Renewable Energy Limited Aayakar Bhavan 9Th Floor, Universal Majestic Vs. M.K. Road Pl Likhande Marg, Chembur Churchgate West, Mumbai-400 043. Mumbai-40 0020. Pan : Aaicr1703J Appellant Respondent

For Appellant: Ms. Sudha RamachandranFor Respondent: Shri Jeet Kamdar
Section 90(2)

Hcl Software Products Limited, Delhi vs. The Assistant Commissioner of Income Tax, Circle 11(1), Delhi

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

ITA 2704/DEL/2024[2017-18]Status: DisposedITAT Delhi16 May 2025AY 2017-18

Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Shri Tanay Sharma, Sr. DR
Section 115JSection 143(2)Section 195Section 40Section 9(1)(vii)

Michael Page International Pte Limited, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation ) -3(2)(2), Mumbai

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

ITA 1427/MUM/2025[2022-23]Status: DisposedITAT Mumbai15 May 2025AY 2022-23

Bench: Shri Sandeep Singh Karhailshri Girish Agrawal

For Appellant: Ms. Hirali DesaiFor Respondent: Shri Soumendu Kumar Dash, Sr.DR
Section 143(3)Section 144C(1)Section 144C(13)Section 234BSection 270A

M/S. Philips Electronics Nederland B.V., Kolkata vs. A.C.I.T.(International Taxation), Circle - 2(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 134/KOL/2023[2020-2021]Status: DisposedITAT Kolkata30 Apr 2025AY 2020-2021

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaआयकर अपील सं/Ita No.134/Kol/2023 (नििाारण वर्ा / Assessment Year : 2020-2021) M/S Philips Electronics Vs Acit(International Taxation), Nederland B.V. Circle-2(1), Kolkata C/O Deloitte Haskins & Sells Llp Bengal Intelligent Park, Building Omega, 13Th& 14Th Floor, Block- Ep & Gp, Sector-V, Salt Lake Electronic Complex, Kolkata- 700091 Pan No. :Aafcp4361F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररतीकीओरसे /Assessee By : Shri Ketan Ved, Ar राजस्वकीओरसे /Revenue By : Shri Guru Bhashyam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 06/02/2025 घोषणा की तारीख/Date Of Pronouncement : 30/04/2025 आदेश / O R D E R Per Rajesh Kumar, Am: This Is An Appeal Filed By The Assessee Against The Order Dated 31.12.2022, Passed By The Acit, Circle-2(1), It, Kolkata Giving Effect To The Direction Given By The Dispute Resolution Panel-2, New Delhi(In Short The ‘Drp’), Dated 04.11.2022, Thereby Finalizing The Assessment Order In Accordance With The Provisions Of Section 144C(13) R.W.S. 143(3) Of The Act. 2. At The Outset, Ld. Ar Drew Our Attention To The Additional Ground Filed By The Assessee & Submitted That The Appeal Of The Assessee May Be Decided On The Following Additional Grounds Taken By The Assessee :-

For Appellant: Shri Ketan Ved, ARFor Respondent: Shri Guru Bhashyam, CIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 144CSection 144C(13)Section 156Section 90(2)