2016-TII-36-HC-DEL-INTL
CIT Vs HALLIBURTON EXPORT INC: DELHI HIGH COURT (Dated: July 11, 2016)
Income tax - Sections 9(1)(vi) & 90(3) - India-USA DTAA - Article 12(3).
Keywords - Business income - pre-packaged copyrighted software - royalty - FTS - fees for technical services.
Whether the court is required to examine the impact of the amendment in Section 9(1)(vi) on the question whether the sum received for sale of pre-packaged software is royalty or FTS or business income only if Section 90(3) prevails and is more beneficial to the assessee as compared to provisions of the tax treaty - YES: HC
Revenue's appeal dismissed
2016-TII-166-ITAT-MUM-INTL
DDIT Vs LUBRIZOL CORPORATION: MUMBAI ITAT (Dated: July 13, 2016)
Income Tax - Sections 92CA(3), 143(3) & 144 - India-USA DTAA - Article 5(4) & 7.
Keywords - Technology Transfer Agreement - marketing - sales representation agreement - royalty - solicit orders.
Whether when the assessee did not have a PE in India in the year under consideration as per Article 5(1), 5(2), 5(4) & 5(5) of the Tax Treaty, the addition made by AO, being a profit margin on sale made by the assessee in India, can be considered as sustainable addition to income - NO: ITAT
Whether when a duty is cast on the Indian payer to deduct tax at source, on failure of the payer to do so, no interest could be imposed on such non resident - YES: ITAT
Revenue's appeal dismissed