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TMI Blog2024 (8) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... E India Technology India Ltd [ 2010 (9) TMI 7 - SUPREME COURT] - Decided in favour of assessee. - Shri Saktijit Dey, Hon ble Vice President And Shri M. Balaganesh, Accountant Member For the Assessee : Shri Ajay Vohra, Sr. Adv, Shri Neeraj Jain, Adv, Shri Aditya Vohra, Adv And Shri Arpit Goyal, CA For the Revenue : Shri T. James Singson, CIT DR ORDER PER M. BALAGANESH, A. M.: 1. These appeals arose out of independent orders by the ld CIT(A) against the order passed by the Income Tax Officer (International Taxation), Ward- 2(1)(1), New Delhi u/s 201/201(1A) of the Income Tax Act, 1961 (hereinafter for short the Act ). 2. Identical issues are involved in all these appeals and hence, they are taken together and disposed of by this common orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces made by the assessee company to its subsidiary companies in different countries would be taxable in the hands of the respective subsidiary companies in India on the ground that the same tantamount to income deemed to accrue or arose in India within the meaning of Section 9 of the Act. Accordingly, the remittances made by the assessee were duly subjected to Income Tax assessment in India in the hands of the subsidiary companies. Those assessment orders were duly confirmed by the ld CIT(A). Then those matters travelled to this Tribunal. This Tribunal in the hands of the subsidiary companies had categorically held that the remittance received by them from Indian company i.e. HCL Technologies Ltd (assessee herein) would not be taxable in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. (Para no.15, Page No.35-37) 2 The Hon'ble Tribunal further held that both the Assessee and the foreign AEs are jointly rendering services to the customers located outside India, billing is done on a consolidated basis on the customer by the Assessee (including the services rendered by the foreign AEs to the customer located outside India); payments are received by the Assessee from the customer located outside India and thereafter, revenue is shared by the Assessee with the foreign AEs for the proportionate volume of services rendered by the foreign AEs to the customer. (Para no.22, Page No.45) 3. The Hon'ble Tribunal further noted that the assessing officer erred in holding that the services were rendered by foreign AEs to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee foreign AEs could not be construed as FTS. (Para no.33, Page No.66) to the Re: (i)Income of the foreign AEs not taxable in India und) thection 9(1)(vi) of the Act due to exclusions contained in sub-clause (b) Services utilized in a business carried on outside India by the Assessee, l.e., the payer 1. The Hon'ble Tribunal has noted that if the contention of the Aoriste amount paid to the foreign s ryb Assessee is to be considered towards onsite software services provided by the Assessee in the course of carrying on its business of onsite services, provided by the Assessee then such business of providing ons tu services is carried were to be accepted, even then h onsite services are performed outside India and are also delivered dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Re: (IV)Taxability under the DTAAs - No findings returned 1. The Hon'ble Tribunal held that since receipts of the foreign AEs from the Assessee are held to be not taxable in India under the provisions of the Act, the grounds raised qua taxability of the impugned receipts under the DTAAs were rendered academic in nature, no findings were returned and the same were left open for determination. (Para no.35, Page No.67) Re: (V) Receipts in connection with Infrastructure Services 1. The Hon'ble Tribunal noted that they have already held receipts of foreign AEs from the Assessee to be not taxable in India. It was further held that the receipts towards Infrastructure Services were also not chargeable to tax in India since no technical kno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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