Court : Authority for Advance Rulings
Reported in : (1999)235ITR565AAR
Suhas C. Sen, J. (Chairman), Subhash C. Jain and Mohini Bhussry, Members Bentley (H.M. Inspector of Taxes) v. Evans, [1959] 39 TC 132 (Ch D.); Abbott v. Philbin (Inspector of Taxes), [1960] 2 All ER 763 (HL); State of Uttar Pradesh v. Renusagar Power Co., 1. The applicant is a company incorporated in the USA. They set up another company in India, which is a fully owned subsidiary of the American company. The American company has made a proposal to enter into a stock option agreement with the employees of the Indian subsidiary. Under this agreement, the employees of the Indian company shall have the option to subscribe to the shares of the US company at a pre-determined price called the option price which will be lower than the ruling market price of the shares. The employees will have the option to subscribe and become the owners of the shares on any date of their choice. As and when such option is exercised, the employee will have to sell the shares in the open market in the USA at t...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1998)234ITR828AAR
Suhas C. Sen, J. (Chairman), Subhash C. Jain and Mohini Bhussry, Members 1. Niko Resources Ltd., the applicant herein is a foreign company incorporated in Alberta, Canada. It is engaged in the business of exploration and development of oil and gas fields. The applicant entered into a collaboration agreement with Gujarat State Petrochemical Corporation Ltd. (GSPCL), and thereafter jointly entered into a contract with the Central Government of India, in September, 1994, for exploration and development of oil and gas fields at various places.The project involves, inter alia, drilling, completion and testing of development of oil wells, the drilling and completion of wells for gas or water injection, and laying of gathering lines. The contention of the applicant is that these activities come within the scope of Section 42 of the Income-tax Act. Its total income can only be computed, after taking into consideration the special provisions of Section 42.Therefore, Section 115JA cannot be mad...
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Reported in : (1999)236ITR652AAR
For Appellant/Petitioner/Plaintiff: Huned Contractor and Vijay Dhingra, Chartered Accountants Income Tax Act, 1961 - Sections 10(5B), 293A, 293A(2); Wealth Tax Act; Gift Tax Act 1. The case of the petitioner is that he fulfils all the requirements laid down in Section 10(5B) and, therefore, he should be entitled to get the benefit of that section. On behalf of the Commissioner, the point has been taken up that the petitioner does not come within the main clause of (5B) because he is not employed by any of the authorities mentioned in the first part of the section. He is not an employee of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this clause or Sub-clause (viia) of Clause (6) by the prescribed authority. "In the case of an individual who renders services as a technician in the employment (commencing from a date a...
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Reported in : (1998)230ITR206AAR
Appellants: Steffen, Robertson and Kirsten Consulting Engineers and Scientists For Appellant/Petitioner/Plaintiff: Samir Chakraborty, M.K. Gyara and S.N. Mitra, Advs.Income Tax Act, 1961 - Sections 9, 9(1), 115A(1), 245N and 245Q; Finance Act 1. This is an application under Section 245Q(1) of the Income-tax Act, 1961 ("the Act"). The applicant, Steffen Robertson and Kirsten ("SRK"), is a company incorporated under the laws of South Africa having its registered office at SRK House, Johannesburg, South Africa. It is thus a foreign company which is non-resident in India and as such entitled to maintain the present application which has been filed in the following circumstances.2. The applicant has signed a technical consultancy agreement dated December 20, 1996, with Tata Iron and Steel Company Ltd. (TISCO) for providing engineering services to the latter in the form of validation of orebody model, optimisation of pit operations and feasibility study of underground mining of TISCO's chro...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1999)239ITR879AAR
1. (29-10-1997) : The applicant, Al Nisr Publishing, is a partnership registered in the United Arab Emirates (UAE). It has filed this application under Section 245Q(1) of the Income-tax Act, 1961 ("the Act"), requesting the ruling of this Authority on the following questions : "1. Whether, in the facts and circumstances of the case, any business profits or income accrues or arises in India in the hands of the applicant out of advertising revenue received/receivable from its agent(s) in India 2. Whether such advertising revenues remitted out of India by the agent(s) of the applicant is subject to deduction of tax at source under Section 195 or any other provision of the Income-tax Act, 1961, and, if so, what would be the amount on which the tax would be deducted at source ?" 2. The relevant facts having a bearing on the questions on which the advance ruling is required, lie within a short compass. As stated, the applicant is a partnership firm with three partners, all residents of the ...
Tag this Judgment!Court : Authority for Advance Rulings
Reported in : (1999)237ITR156AAR
For Appellant/Petitioner/Plaintiff: Dinesh Vyas and Himanshu Narayan, Advs. and Ajay Mehra, Chartered Accountant CIT v. Visakhapatnam Port Trust, [1983] 144 ITR 146; In Re: Advance Ruling Application No. P-11 of 1995, [1997] 228 ITR 55 (AAR) 1. Mazagaon Dock Limited of India (MDL) was awarded a contract by the Oil and Natural Gas Commission (ONGC) for the installation of sub-sea gas pipelines including the 12" SHG gas pipeline (SHG pipeline) to be laid down between B121 platform and the SHG platform, offshore India.For the execution of the said contract, MDL sub-contracted a part of the installation work of the SHG pipeline to Hyundai Heavy Industries Co. Limited (HHI). For the purpose of execution of its contract with MDL, HHI sub-contracted a part of the installation work of the SHG pipeline to Brown and Root Inc. (BRI).2. The applicant, Brown and Root Inc., is a company duly incorporated and existing under the laws of the United States of America, with its office at 1209, Orange St...
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Reported in : (1999)238ITR189AAR
For Appellant/Petitioner/Plaintiff: Prayaag Joshi, Adv. and Kunal Kashyap, Accountants 1. The applicant, Amir Zai Sangin, is a Swedish national. He is an employee of Telia Swedtel AB ("Telia"), a Swedish company active in the set up and expansion of telecommunications networks in several countries in the world, carrying on its operations sometimes with the help of local partners. It specialises in the identification and acquisition of promising telecommunications opportunities and providing operational and technical expertise to its partnerships. Telia's activities were focused in Africa, Middle East and Asia.2. In mid-1995, Telia decided to extend its activities to India. A consortium was formed between the Telephone Organisation of Thailand, Jasmine International Ltd., Sanmar Electronics Limited, United Telecoms Ltd., and Telia. The consortium floated an Indian company called JT Mobiles Limited (JTM) in which Telia had a 26 per cent. shareholding.JTM bid for some of the regional cel...
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Reported in : (1998)231ITR464AAR
For Appellant/Petitioner/Plaintiff: Prayaag Joshi, Kunal Kashyap and Arun Acharya, Chartered Accountants 1. The applicant, David Kenneth White, is a British national. He is at present employed with Modicom Network Private Limited (MNP) which is a joint venture between Distacom Communications Limited (DCL), Motorola Inc. and the B. K. Modi Group of Industries Limited in India. DCL is a Hong Kong based company, active in telecommunications joint ventures throughout Asia. Its activities are focussed in Japan, Greater China, India and South East Asia. It has been at the leading edge of telecommunications for more than two decades, introducing paging products and services and cellular services in Canada and Hong Kong.2. In the middle of 1995, DCL, through a consortium which included the B. K. Modi and Motorola groups, got incorporated in India a project company MNP, under the Companies Act with DCL holding 39 per cent.shareholding therein. MNP bid for tenders issued by the Government of In...
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Reported in : (1999)237ITR142AAR
Appellants: Horizontal Drilling International S.A.Vs.For Appellant/Petitioner/Plaintiff: S.P. Puri, Vijender Gupta and Vidur Puri, Chartered Accountants 1. The applicant, Horizontal Drilling International S. A., is a company incorporated in France. An extract from the Trade Register of the Commercial Court of Pontoise describes the company's business activity as comprising : "The undertaking and performance of public works contracts, more particularly drilling works of all kinds as well as laying underground cable pipes and pipelines ; manufacture and sale of drilling equipment, incorporation and acquisition of companies, holding, investment in marketable securities and any legal and financial arrangements." The bye-laws of the company in Article 2 describe the company's corporate purpose as under : "The company's purpose both in France and in all countries, is the undertaking and performance of public works contracts more particularly drilling works of all sorts as well as the laying...
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Reported in : (1999)237ITR135AAR
For Appellant/Petitioner/Plaintiff: S.B. Garg, chartered accountant and H.G. Chopra, Adv.Monte Harris v. CIT, [1996] 218 ITR 413 (AAR); In Re: Advance Ruling Application No. P-5 of 1995, [1997] 223 ITR 379; CIT v. Sachindramohan Nandy, [1984] 146 ITR 597; N.R. Sirker v. CIT, [1978] 111 ITR 281; Indulal Kanji Parekh v. CIT, [1987] 163 ITR 102 1. The applicant is a chartered accountant by profession. He left India on October 23, 1989, to take up employment in the Republic of Zambia in a corporation owned by the Government of Zambia. He was paid both in US dollars as well as in the local currency besides other benefits offered to him as per the rules of the corporation. He was allowed to remit his savings in convertible foreign currency to the country of his choice.He visited India for 49 days between February 18, 1991, and April 8, 1991, and for 32 days between December 18, 1994, and January 18, 1995, during his leave and thus, his stay in India never exceeded more than sixty days in an...
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