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)(v) : Income deemed to accrue or arise in India-Interest-Loan provided to Indian parties-Not attributable to the permanent establishment-Interest income taxable at 10 per cent and not 40 per cent. [S. 9(1)(i), 154, Art. 7, 11(6), 14]

DCIT v. Marubeni Corporation (2022) 195 ITD 620 / 97 ITR 1(SN) / 218 TTJ 537 / 215 DTR 265 (Mum.)(Trib.)

S. 9(1)(v) : Income deemed to accrue or arise in India-Interest-Rate of tax-Government securities-Interest income received on rupee-denominated bonds-Rate applicable at the rate of 5 per cent or 15 per cent-Matter remanded-Offshore distribution commission income-No permanent establishment-Commission is not taxable in India. [S. 9(1)(i), 115AD, Art. 7, 11]

DCIT v. Credit Suisse (Singapore) Ltd. (2022) 195 ITD 652 / 96 ITR 77(SN) / 219 TTJ 1078 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Engineering services to its Indian subsidiary-Absence of PE-Receipt is not taxable-DTAA-India-Thailand. [Art. 7, 12, 22]

DCIT v. Michelin ROH Co. Ltd. (2022) 195 ITD 541 (Delhi) (Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Dependent agent (DAPE)-Remuneration at arm’s length-Tax neutral-Addition was deleted-DTAA-India-USA. [Art. 5, 7]

Micro Focus Software Inc. v. DCIT (IT) (2022) 195 ITD 523 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Capital gains-Share transactions-Beneficial ownership-AO is directed to decide the issue by passing speaking order-DTAA-India-Mauritius. [Art. 13]

Blackstone FP Capital Partners Mauritius V Ltd. v. CIT IT (2022) 195 ITD 462 / 217 TTJ 753 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Annual Maintenance Contract with an Indian Co-Not to constitute either a fixed place PE or agency PE business profit of assessee could not be taxed in India-DTAA-India-Singapore. [Art. 5, 8]

AB Sciex Pte. Ltd. v. ACIT (IT) (2022) 195 ITD 384 (Delhi) (Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent establishment-Agency PE-Agent is paid arm’s length remuneration-Tax neutral-Not taxable-DTAA-India-Singapore. [Art. 5]

UPS Asia Group Pte. Ltd. v. ACIT (IT) (2022) 195 ITD 225 (Mum.)(Trib.)

S.2(14)(iii): Capital asset-Agricultural land-Failure to provide evidence-Matter remanded back to Assessing Officer for verification [S. 10(37), 45]

Greenboom Developers & Resorts Ltd. v. ITO (2022) 195 ITD 567 (Mum.)(Trib.)

S. 2(14)(iii) : Capital asset-Agricultural land-Hazira Notified area-not a municipal area or deemed municipality-Compensation received on the acquisition of such land was not taxable. [S. 10(37)]

Chimanbhai Dahyabhai Patel. v. ITO (2022) 195 ITD 585 (Surat) (Trib.)

S. 260A: Appeal -High Court – Territorial jurisdiction – Order passed by the Delhi Tribunal – Appeal filed in Calcutta High Court – Assessment files transferred from Delhi to Calcutta – Calcutta High Court has no jurisdiction- Appeals are rejected as not maintainable -Liberty granted to file the appeals before the appropriate High Court. [ S. 127, 254(1), 256(1), 256(2), 269 ]

PCIT v. Pavitra Trexim Pvt. Ltd.(2022) 216 DTR 225 / 327 CTR 797 (Cal) ( HC)/ Canton Vinimay (P) Ltd; PCIT v. (2022) 216 DTR 225 / 327 CTR 797 (Cal)(HC) /Sagar Fintrade ( P) Ltd ; PCIT v. ( 2022) 216 DTR 225 /327 CTR 797 ( Cal )( HC)