Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Aircom International Ltd., IN RE (2021) 432 ITR 1 / 198 DTR 249 / 319 CTR 337 (AAR)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees-Non-Resident-Providing management support services-Not royalty-Payment received are not business income DTAA-India-UK [S. 9(1)(i),.90, 195, Art. 5, 13 (4)]

Technip France Sas, In Re (2021) 432 ITR 338 / 198 DTR 193 / 319 CTR 113 (AAR)

S. 9(1)(i) : Income deemed to accrue or arise in India-Returns filed after filing of application would not make application infructuous-Returns filed after filing of application would not make application infructuous-Business connection-Sale complete outside India therefore no income accrued or deemed to accrue in India-Fixed place of business is held to be permanent establishment-Composite contract on turnkey basis for setting up butene-1 Plant-Services taxable in India-Design services inextricably connected with setting up of plant-Profits of permanent establishment to be taxed in India as business Income-DTAA-India-France. [S. 245RR, Art. 7 (1), 13(4)]

Technip France Sas, In Re (2021) 432 ITR 338 / 198 DTR 193 / 319 CTR 113 (AAR)

S. 9(1)(i) : Income deemed to accrue or arise in India-Returns filed after filing of application would not make application infructuous-Returns filed after filing of application would not make application infructuous-Business connection-Sale complete outside India therefore no income accrued or deemed to accrue in India-Fixed place of business is held to be permanent establishment-Composite contract on turnkey basis for setting up butene-1 Plant-Services taxable in India-Design services inextricably connected with setting up of plant-Profits of permanent establishment to be taxed in India as business Income-DTAA-India-France. [S. 245RR, Art. 7(1), 13(4)]

Symphony Technology Group Llc, In Re (2021) 432 ITR 165 (AAR)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-resident-Capital gains-Share transaction between two non-resident entities are not liable to tax in India-Buyer is not required to deduct tax at source. [S. 195, ITAT R. 11UB IIUC]

Adani Electricity Mumbai Ltd., IN RE (2021) 432 ITR 173 (AAR)

S. 4 : Charge of income-tax-Income-Diversion by overriding title-Right to recover gap only on approval-Appeal pending before Appellate Authority and Court-Regulatory Assets under approval received is not taxable on account of diversion of income by overriding title.

Jamuna Vernekar (Smt.) v. Dy.CIT (2021) 432 ITR 146 (Karn.)(HC)

S. 2(22)(e): Deemed dividend-Loan to share holder-Commercial transaction-Advance for construction of building-Not assessable as deemed dividend. [S.1150]

Salzgitter Hydraulics (P.) Ltd v. ITO ( 2021) 128 taxmann.com 192 ( Hyd) ( Trib)

S.43B: Deductions on actual payment – Amendment by Finance Act , 2021 disallowance employee’s contribution to ESI/PF is applicable prospectively [ S. 36 (1) (va), 139 (1) ]

Peter Vaz v. CIT ( 2021) 436 ITR 616/ 204 DTR 376/ 322 CTR 121 / 128 taxmann.com 180/ 281 Taxman 171 ( Bom) (HC)/Edgar Braz Afonso v CIT ( 2021) 436 ITR 616/ 204 DTR 376/ 322 CTR 121 128 taxmann.com 180 / 281 Taxman 171 ( Bom) (HC)

S. 255 : Appellate Tribunal – Procedure – Cross objection- Jurisdiction issue can be raised before ITAT , without filing cross objection- Matter remanded to Tribunal for fresh consideration of appeals instituted by revenue after permitting assessee to raise issue of non-compliance with in jurisdictional parameters of section 153C of the Act .Delay of 248 days in filing cross objection was condoned . [S.153C, 253, 254 (1) , ITAT R, 27, Form . 36A ,Code of Civil Procedure, 1908 rule 2 of Order II , Limitation Act, 1963 Limitation Act, 1963 , S. 5 ]

Engineering Analysis Centre Of Excellence P. Ltd. v. CIT (2021) 432 ITR 471/199 DTR 361/ 319 CTR 497/ 281 taxman 19/ 125 taxmann.com 42 (SC) Citrix Systems Asia Pacific Pte. Ltd v. DIT CIT ( 2021) 432 ITR 471/199 DTR 361/ 319 CTR 497 / 125 taxmann.com 42 ( SC) /DIT v. Ericsson A.B . ( 2021) 432 ITR 471/199 DTR 361/ 319 CTR 497 / 125 taxmann.com 42 ( SC)

Interpretation of taxing statutes – Royalties – Double Taxation Avoidance agreements – Liberal construction- DTAA -India – Singapore [S. 9(1) (vi), 195 , Art, 3, 12 (3) , 30 ]

Engineering Analysis Centre Of Excellence P. Ltd. v. CIT (2021) 432 ITR 471/199 DTR 361/ 319 CTR 497 (SC) / Citrix Systems Asia Pacific Pte. Ltd v. DIT CIT ( 2021) 432 ITR 471/199 DTR 361/ 319 CTR 497 / 125 taxmann.com 42 ( SC)/DIT v. Ericsson A.B . ( 2021) 432 ITR 471/199 DTR 361/ 319 CTR 497 / 125 taxmann.com 42 ( SC) www.itatonline .org Editorial: CIT v. Alcatel Lucent Canada ( 2015 ) 372 TR 476 ( Delhi) (HC) affirmed , CIT v. Samsung Electronics Co Ltd ( 2012 ) 345 ITR 494 ( Karn) (HC) CIT v. Sunray Computers P.Ltd ( 2012 ) 348 ITR 196 ( Karn) (HC) , AAR in Citrix Systems Asia Pacific Pte. Ltd , Inn re ( 2012 ) 343 ITR 1 (AAR ) reversed .

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Computer software not royalty – Right to reproduce and right to use computer software separate rights -Not liable to deduct tax at source – Agreement has to be read as a whole , real nature of transaction to be seen reading agreement as a whole – DTAA – India – Singapore -India -China – Japan – Kingdom -USA [S. 2(7) , 2(37A, ) 4 , 5, 90 (2),195 ,201 (IA ) , Copyright Act, 1957, S .2(A ), 52(1)(aa) , Art , 3 (2) 12(3) 30 ]