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1 - 10 of 10 (0.20 seconds)Section 9 in The Income Tax Act, 1961 [Entire Act]
Aeg Aktiengesllschaft vs Commissioner Of Income-Tax on 17 March, 2004
9. He submitted, the decisio n of the Hon'ble Karnataka
High Co urt in case of AEG Aktiengesllschaft Vs. CIT
(supra) is no t germane to the issue at hand. Without
prejudice , he submitted, in any case, if in the said
decis ion the view take is co ntrary to the vie w taken by the
Hon'ble Jurisdictio nal High Court, then the decis ion cannot
be followed. Without prejudice to the afore said
submiss ion, lea rned counsel subm itte d, even ass uming
that the receipts are to be characterize d as FTS, still, it
will no t be cha rge able to tax in India, having re gar d to the
provisio n of Article 12 and Article 7 of India-Switzerland
DTAA. He submitted, the supe rv isory ac tivity rendered in
connection with the installa tio n of plant and equipment
extended fo r a period more than six months. The refo re, in
terms of Article 5(2)(j) of the DTA A, the assessee had a
service PE in India. He submitted, once the assessee had a
PE in India by virtue of exceptio ns pro vided unde r
par agraph 6 of Article 12 o f the DT AA, the provisions of
Artic le 12 would have no applicatio n to the receipts from
supply of designs and draw ings, as, such amount can only
be brought to ta x in te rms of Article 7 of the DTAA.
However, he submitted, para (1) of Artic le 7 of the DTAA
provides that only so much of the profit attributable to the
PE ca n be brought to tax. He submitted, since, in the facts
of the present case, the entire work of preparing the
designs and drawings was carried out outs ide India, the PE
hav ing no ro le to play, the amount cannot be taxe d in
India. He submitte d, the amount received is not taxable as
FTS.
Article 7 in Constitution of India [Constitution]
Section 234B in The Income Tax Act, 1961 [Entire Act]
White Industries Australia Ltd., ... vs Asst. Dit, International Taxation - ... on 5 April, 2017
7. Hav ing held so, he proceeded to examine whethe r
the fees received can be deemed to accrue or aris e in
India withi n the meaning o f sectio n 9. While dealing with
this as pect, he observed that the ratio laid dow n in case of
Ishikawaj ima Ha rima Heav y Industries Ltd. Vs. DIT (2007)
288 ITR 408 will be of no help to the assessee due to
introduction of explana tion under s ection 9( 2) o f the Act,
whic h makes it clear that the inco me of a non-resident
shall be deemed to accrue o r arise in India unde r clause
Nuclear Power Corporation Of India Ltd, ... vs M/S Kay Bouvet Engineering ... on 27 September, 2021
CI T vs. Oil & Natural Gas Corpo ration Limite d
[2015] 376 ITR 306 (SC)
CI T vs. Hy undai Heavy Industries C ompany Limited
[2007] 161 Taxma nn 191 (SC)
Ishikawajma - Harima He avy Indus tries Ltd. - Vs
Dire ctor of Income Tax, Mumbai ( 288 ITR 408 SC)
Natio nal Pe tro leum Constr uction v. DIT [2016] 66
taxmann.com 16 ( Delhi High Court)
Linde AG, L inde Engineering Di vision Vs. Deputy
Dire ctor of Income Tax [ 2014] 44 Taxmann.com
244 ( Delhi High C ourt)
CI T Vs. Mitsui Engineering and Shipbuilding [174
CTR 66] (Delhi High Co urt
DIT Vs. Nokia Ne tworks OY (25 Ta xmann.com 225)
(Delhi High Court)
CI T vs. Neyve li L ignite Corpo ration Ltd. (243 ITR
Commissioner Of Income-Tax vs Mitsui Engineering And Ship Building ... on 21 December, 2001
Similar v iew has also been e xpressed by the Hon' ble Delhi
High Co urt in case of CIT Vs. Mitsui Engineering and Ship
Building (supra) .
The Income Tax Act, 1961
Ahmedabad Foundry And Engineering ... vs Dit (Exemp.), Ahmedabad on 10 March, 2017
Insofa r as the decision of the Hon'ble Karnataka High
Court in c ase of AEG Aktiengesllshaft Vs. CIT (supra), in
view of the ratio laid dow n by the Hon'ble High Court in
case of L inde Engineering Division Vs. DIT (supra), there
is no nee d for much de liber atio n o n the said decisio n.
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