Saturday, 24 February 2024

RECENT DIRECT TAX JUDGEMENT FROM DELHI HIGH COURT

 ·       Delhi HC in the case of Godaddy held that domain name registration of third parties are not royalty.  They only acting as a Registrar and offering its services to its customers for having their domain names registered.      

 

·       Delhi High Court recently ruled against UAE-based Hyatt International Southwest Asia Ltd. (Assessee), holding that it has a Fixed Place Permanent Establishment (PE) in India, specifically at the premises of Hyatt Regency, Delhi. Despite the Assessee's argument that attribution should not be made due to global losses, the court expressed reservations about this stance, emphasizing the need to treat PE as an independent taxable entity for attribution purposes.

 

·       In the case of Bar council of India, Delhi HC condones the delay of filing of Form 10.  

 

·       Delhi High Court gave a decision that  Software Sale Payment Not Royalty under India-Singapore DTAA: Case Name : CIT - International Taxation Vs DXC Technology Services Singapore Pte. Ltd

 

·       In the case of Federal Bank, the Delhi HC held that before passing the order, the AO should provide sufficient time & opportunity to the taxpayer. Same was further confirmed by court in the case of GAC Shipping India.       

 

·       Delhi High Court has held that merely because a person holds an office in a corporate entity, it would not be sufficient to treat such individual as the “principal officer” for income tax prosecution matters pertaining to the company. The finding that an individual is the “principal officer” must be based on the fact that the person was connected with the management or administration of the company.

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