2024 (10) TMI 370 - SCH - Income Tax

Income accrued in India or not? - receipt of guarantee charges by the appellant from its Indian subsidiaries in terms of an Intra Group Parental Guarantee and Counter Indemnity Services Agreement - Determination of source of income and the nature of services which are concerned with the extension of guarantees - HC 2024 (5) TMI 1415 - DELHI HIGH COURT decided that income in the form of guarantee charges had in fact accrued and arisen in India. The guarantee charges clearly answered to the description of income accruing and which was explained by the Supreme Court to constitute a periodical monetary return coming in with some sort of regularity, or expected regularity, from definite sources . As we view the Intra Group Agreement, it becomes evident and apparent that the foundational source of those payments was the appellant s agreement to provide the service of parent company guarantees and counter indemnification facilities. These were services offered to the Indian subsidiaries to avail for their own commercial benefit . HELD THAT - No reason to interfere with the impugned order. The special leave petition is hence, dismissed. Pending application(s), if any, shall also stand disposed of.

Summary

The Supreme Court dismissed the special leave petition as it found no reason to interfere with the impugned order. Pending applications were also disposed of.

Citation: TMI
Judges: HON'BLE MRS. JUSTICE B.V. NAGARATHNA and HON'BLE MR. JUSTICE NONGMEIKAPAM KOTISWAR SINGH
Petitioner's Counsel: Mr. Percy J. Pardiwala, Sr. Adv.; Mr. Vishal Kalra, Adv.; Ms. Snigdha Gautam, Adv.; Mr. Anil Kumar Gautam, AOR