This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Service help agreement-Proof of service was not furnished-Matter remanded-DTAA-India-Sweden. [Art. 12]

Sandvik IT Services AB. v. ACIT(IT) (2021) 191 ITD 290 (Pune) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of licence to use software-Not assessable as royalty-Not liable to deduct tax at source-DTAA-India-Singapore. [S. 9(1)(vii), 90(2), 195, Art. 12]

IBM Singapore (Pte.) Ltd. v. DCIT (IT) (2021) 191 ITD 486 (Bang.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of computer software on a CD-Payment is not royalty-Matter remanded-DTAA-India-USA. [S. 9(1)(vii), Art. 12, Copy Right Act, S. 14(b)]

World Courier (India) (P.) Ltd. v. (2021) 191 ITD 264 /(2022) 99 ITR 170 (Bang.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payment to distributor-No right to use any copy right-Not taxable as royalty in India-Matter remanded.

Quest Software International Ltd. v. DCIT(IT) (2021) 191 ITD 243 (Bang.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software /licence-Not taxable in India-DTAA-India-Singapore. [S. 9(1)(vii), Art. 5, 7, 12]

BMC Software Asia Pacific Pte Ltd. v. ACIT (2021) 191 ITD 621 (Pune)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software licences to end-users-Not transfer of copyright-Not royalty-Not liable to deduct tax at source-DTAA-India-Australia. [S. 9(1)(vi), 195, Art. 12]

Atlassian Pty Ltd. v. DCIT(IT) (2021) 191 ITD 731 (Bang.)(Trib.)

S. 9(1)(iv) : Income deemed to accrue or arise in India-Dividend by Indian company-Person making payment to assessee could be treated as SCB-UK or SCB-India but none of them were an Indian resident for purpose of India-Mauritius tax treaty, dividend income could not be brought to tax in India-Domestic depository which was admittedly a branch of foreign company would not be treated as an Indian resident-DTAA-India-Mauritius. [S. 9(1)(i), Art. 10, 22]

Morgan Stanley Mauritius Co. Ltd. v. DCIT(IT) (2021) 191 ITD 88 / 212 TTJ 1/ 203 DTR 10(Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-No activities carried out from project office in India-No permanent establishment in India-Interest received on income tax refund-Taxable as per article 12(2) of India UK DTAA at rate of 15 per cent of gross amount of interest as income-DTAA-India-United Kingdom. [S. 9(1)(v), Art. 5, 12 (2)]

Dolphin Drilling Ltd. v. DCIT(IT) (2021) 191 ITD 181 (Dehradun) (Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Supply of equipments and spare parts to Indian company-Outside India-No portion of income from offshore supply would be taxable in India-DTAA-India-Japan. [Art. 5, 7]

Sumitomo Corporation v. DCIT(IT) (2021) 191 ITD 438 (Delhi) (Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Repair and maintenance services-Monitoring under-sea cable system to company (TSL)-Receipts of standby maintenance charges from TCL had to be calculated on basis of apportionment of cable length in India vis-a-vis worldwide cable length-Articles 7 and 12 of OECD Model convention. [S. 9(1)(vii)]

Reliance Globalcom Ltd. v. DCIT (2021) 191 ITD 648 (Mum.)(Trib.)