Court : Mumbai
Reported in : [1977]108ITR874(Bom)
..... the question whether a non-resident has a 'business connection' in india from or through which income, profits or gains can be said to accrue or arise to him within the meaning of section 9 of the income-tax act, 1961 (equivalent to section 42 of the 1922 act), has to be determined on the facts of each case. ..... 23 of 1969, dated july 23, 1969, issued by the central board of direct taxes where certain clarifications have been issued by the board on the scope of provisions of section 42 (section 9 of the income-tax act, 1961), and their applicability in certain types of cases and he fairly conceded that the question raised in the instant reference may have to be considered having regard to the guidelines or clarifications that have been issued by the board in ..... as regards the contention of the assessee that even if there was business connection no income could be said to accrue or arise to the non-resident in the taxable territories, having regard to the provisions of sub-section (3) of the section 42, the income-tax officer took the view that in view of the modus operandi of the transaction between the non-resident and its indian subsidiary there were operations in india, that is, in taxable territories to which profits could be attributed under section 42(1) of the act. .....
Tag this Judgment!Court : Mumbai
Reported in : (1983)32CTR(Bom)79; [1983]143ITR720(Bom); [1983]14TAXMAN3(Bom)
..... income-tax act ..... pending negotiations for acquisition of indian patents;(b) the full benefit of all future inventions which shall be made by wolfs in connection with the manufacture or working of the selected tools in india;(c) the exclusive right so far as wolfs can confer the same to apply for an obtain indian patents for the selected tools and any such future inventions as aforesaid and the benefit ..... the question as to whether the value of 3,625 shares in ralliwolf issued to the assessee-company in consideration of supplying the drawings and information was of a capital nature or of an income nature had come up in the assessment proceedings of the assessee-company in london before the high court of justice, chancery division, on a case submitted by the commissioners for the special purposes ..... of business was carried out in india by the assessee-company, the tribunal took the view that apart from the deputation of two technicians to india, there was no evidence of any other operation of the non-resident's activities in india, that the nature of the services ..... the learned counsel for the revenue has relied on the finding recorded by the aac that the assessee-company was not doing any business in india before and it was contended that on this finding the case sought to be made out by the assessee-company that there was an outright sale of a capital ..... act, 1961 ..... act, 1961 ..... act, 1961, at the instance of the revenue : 'whether, on the facts and in the circumstances of the case, the value of .....
Tag this Judgment!Court : Mumbai
Reported in : (1983)32CTR(Bom)290; [1984]146ITR393(Bom)
..... act, 1961 :'(1) whether, on the facts and in the circumstances of the case, and having regard to section 5(2) of the income-tax act, 1961, ..... act, 1961, is to ascertain whether a non-resident has received or is deemed to have received in the relevant previous year any income in india ..... non-resident assessee-company in india for the assessment year 1964-65 was chargeable to income-tax ? ..... act, 1961, must be a voluntary receipt and since in the instant case the amount was received in india because of exchange regulations it could not be said that the receipt had the character of income ..... act, 1961, the material part of which reads as follows :'subject to the provisions of this act, the total income of any previous year of a person who is a non-resident includes all income from what ever source derived which -(a) is received or is deemed to be received in india in such year by or on behalf ..... of 20% for estimated expenses attributable to the work done by obsf in west germany for earning this amount the balance was treated as taxable income of the assessee, non-resident company, as it was received in india. ..... facts and in the circumstances of the case, the tribunal was justified in holding that the said amount received by the non-resident assessee-company in india was towards satisfaction of a debt due to it by m/s. ..... to the assessee to canvass the question of exemption under the agreement for the avoidance of double taxation between india and west germany when the matter goes back to the tribunal. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)4ITD654(Mum.)
..... these two appeals are by the assessee, a non-resident company, against the order under section 263 of the income-tax act, 1961 ('the act'), by the commissioner in respect of the assessment years 1975-76 and 1976-77. ..... through a subsidiary is set out below: (c) where a non-resident's sales to indian customers are secured through the services of an agent in india, the assessment in india of the income arising but of the transaction will be limited to the amount of profit which is attributable to the agent's services, provided that: (a) the non-resident principal's business activities in india are wholly channelled through his agent; (b) the contracts to sell are made outside india; and (c) the sales are made on a principal-to-principal basis ..... on the facts of the case, we cannot say, considering that only procurement of orders and negotiations thereof are the only operations in india, that the profit attributable would be more than 10 per cent.since the indian company gets a commission of 10 per cent, as per the circular, there is no liability for indian taxation. ..... since we give a finding that some operations are in india, there is question of apportionment of the income under explanation to section 9(1)(i). ..... the reason why the commissioner thought that there may be income arising to the assessee from business connection in india would be clear from the following facts: the us co. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)8ITD449(Mum.)
..... explanation 1 does not say that status determined in income-tax proceedings is conclusive evidence about status for wealth-tax proceeding, what the explanation, in substance lays down is that the terms 'non-resident in india' and 'resident but not ordinarily resident in india' would have the same meaning as those terms have in the 1961 act. ..... section 6 enumerates the properties which shall not be taken into account in computing the net wealth of the individual who is not a citizen of india or who is not resident in india or who is resident but not ordinarily resident in india ..... 1 below that section gives deeming definition of the terms 'not resident in india' and 'resident but not ordinarily resident in india. ..... explanation states that if a person was 'not resident in india' or 'resident but not ordinarily resident in india' within the meaning of these expressions in the 1961 act in the year ending on the valuation date, he shall be deemed to be 'not resident in india' or 'resident but not ordinarily resident in india' for the purposes of section 6.16. ..... we have considered the rival contentions and the facts on record.section 16(1) lays down that if the wto is satisfied without requiring the presence of the assessee or production by him of any evidence that a return made under section 14 or under section 15 of the act is correct and complete, he shall assess the net wealth of the assessee and determine the amount of wealth-tax payable by him or refundable to him on the basis of such .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)10ITD484(Mum.)
..... the assessee addressed a letter to the ito, in which the assessee drew attention to the agreement mentioned above and sought information as to what amount should be deducted at source under section 195 of the income-tax act, 1961 ('the act') while making payments to the non-resident company under the said agreement. ..... high court in that case was construing the provisions of sections 18(3b) and 43 of the indian income-tax act, 1922 ('the 1922 act') which correspond to sections 195 and 163 of the 1961 act. ..... of the matter, a person who is himself liable under section 161 read with section 163(1)(c) to pay income-tax on payments to be made to a non-resident company as an agent of the said non-resident cannot be saddled with further obligation to deduct income-tax under section 195 before making payment to the non-resident and be deemed to be in default under section 201.14. ..... first ground, the contention is that one of the conditions for attracting liability for deducting tax at source under section 195 in respect of the payments made to the non-resident is that the assessee is not liable to pay income-tax thereon as the agent of the said non-resident. ..... has not treated him as an agent, it must be taken that for the purpose of sub-section (3b) of section 18, the person has not been made liable to pay income-tax as an agent of the non-resident. ..... provided in the said agreement that the payments to be made by the assessee to the said non-resident company would be free of taxes in india.3. .....
Tag this Judgment!Court : Mumbai
Reported in : (1986)50CTR(Bom)275; [1986]159ITR203(Bom); [1980]24TAXMAN29(Bom)
..... jetley, learned counsel for the commissioner, is that in view of the provisions of sub-section (1) of section 64 of the income-tax act, 1961, to which we have already referred, the income of the wife and the minor sons of the assessee from their share of income in the said firm and the interest earned by them as set out earlier was liable to be included in the total income of the assessee. ..... the proviso to clause (c) of sub-section (1) of section 5 provides that in the case of a person not ordinarily resident in india, the income which accrues or arises to him outside india shall not be included in his total income, unless it is derived from a business controlled in or a profession set up in india. ..... if the assessee is ordinarily resident in india, his total income would include even the income which is earned by him abroad and, in such a case, the provisions of section 64 would come into full play and the respective shares of profit coming to the wife and minor sons of the assessee in a firm in which the assessee is a partner would certainly be included in his total income. ..... jetley, the result would be that in the case, for example, of a non-resident assessee, having some taxable income in india, even the income earned by his wife and minor sons who are not resident in india from a partnership business carried on abroad and not controlled from india in which the assessee is a partner would be liable to be included in the total income of the assessee and liable to be taxed in india. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)19ITD116(Mum.)
..... he has invited our attention to section 80-o of the income-tax act, 1961, where the expression 'received from a foreign ..... gains and other sums falling within the following clauses shall be excluded from such total income, namely :- (x) in the case of a non-resident company which has not made the prescribed arrangements for the declaration and payment of dividends within india, its income by way of any interest or fees for rendering technical services received from government or a local authority or any indian concern ; the iac rejected the claim ..... interest received from indian branch of the said bank which carries on business as non-resident would be said to be interest received from 'any indian concern' within the meaning of clause (x) of rule 1.the contention of shri dastur is that geographical location in india or situs of the concern in india is sufficient to bring the concern within the scope of the expression 'indian concern' ..... income of that branch was assessed as income of the non-resident ..... the city bank is incorporated outside india and it is a non-resident company. ..... to make the provision in respect of geographical location in india or situs of the concern in india the expression would have been 'concern in india' and not 'indian concern'. ..... if the expression had been 'concern in india', mere location or situation of the concern in the geographical area of india irrespective of the ownership, management or control, would have been sufficient to make the concern fall within .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD217(Mum.)
..... vohra, submitted to us that the charge of income tax is by section 4 of the income-tax act, 1961, which lays down that the income-tax shall be charged in accordance with and subject to the provisions of the income-tax act, 1961 in respect of the total income of every person and the scope of total income has been laid down by section 5 of the income-tax act, 1961, which lays down that the total income of any person who is a non-resident will include all income from whatever source derived, which is received or deemed to be received in india or accrues or arises or is deemed to accrue or arise ..... the assessee's learned counsel, shri dinesh kanabar, invited our attention to clause (2) of section 1 of the income-tax act, 1961, which lays down that the income-tax act, 1961 extends to the whole of india.on this basis it was claimed that the provisions of clauses (iv) and (v) of sub-section (1) of section 6 4 of the income-tax act, 1961 should be read in conjunction with clause (2) of section 1 and if this is done, it will be obvious that the transfers between non-residents outside india will not attract the provisions of either clause (iv) or clause (v) of sub-section (1) of section 64 of the income-tax act, 1961. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD273(Mum.)
..... case the mother and minor children obtained joint decree for maintenance and shares of these individuals in the joint decree were indeterminate and unknown and as such proviso to section 41 of the income-tax act, 1922 applied.this proviso is in pari materia with section 164(1) of the income-tax act, 1961 ..... refer to sub-section (4) of section 21 of the wealth-tax act, 1957 which is in pari materia with section 164(1) of the income-tax act, 1961 ..... representative of the assessee has relied on three decisions of the tribunal where it has been held that the trustees should be assessed in the status of individual under section 164(1) of the income-tax act, 1961 ..... already indicated that under the wealth-tax act, the status under section 21(4) is that of "individual who is citizen of india and who is resident of india" because of specific provision therein ..... section 21(4) of the said act lays down that tax shall be levied in the like manner and to the same extent as it would be leviable upon or recoverable from an individual who is citizen of india and resident in ..... .), in the like manner and to the same extent as it would be leviable upon or recoverable from an individual who is citizen of india and resident in india for the purposes of this act, and (a) at the rates specified in part i of schedule i or (ii) at the rate of three per cent whichever course would be more beneficial to ..... this express provision, the trustees would be assessed in the status of individual who is citizen of india and resident in india .....
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