CIT Vs Siemens Mobile Communication SPA (Supreme Court of India)
The Revenue filed Special Leave Petitions before the Supreme Court of India challenging the judgment of the Delhi High Court, which had dismissed the Revenue’s appeal against an order dated 30 September 2019 passed by the Income Tax Appellate Tribunal. The Supreme Court condoned the delay, heard the learned Additional Solicitor General, and declined to interfere with the impugned judgment and orders of the High Court. Consequently, the Special Leave Petitions and all accompanying interlocutory applications were dismissed.
Read HC Judgment: Delhi HC Affirms No PE in India; Offshore Supply Alone Not Taxable
Before the High Court, the Revenue had raised several questions of law arising from the Tribunal’s decision. These included whether the assessee had a business connection in India under Section 9(1)(i) of the Income-tax Act, 1961; whether a permanent establishment existed in India in the form of an Indian subsidiary under Article 5 of the India–Italy Double Taxation Avoidance Agreement, warranting attribution of profits; whether consideration received for licensing the right to use software was taxable as royalty under Article 13 of the DTAA and under Section 9(1)(vi) of the Act; and whether interest under Section 234B could be levied.
