Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
7. [2025] 173 taxmann.com 403 (Delhi - Trib.)
SMS Siemag AG vs. ADIT
IT Appeal Nos. 5580/Del/2011 and 2144/Del/2012
A.Y.: 2007-08 to 2016-17 Dated: 09.04.2025
Article 12 of India-Germany DTAA – Where supply of drawings and designs is inextricably linked to sale of equipment, consideration received towards drawings and designs cannot constitute FTS
FACTS
The Assessee is a tax resident of Germany, engaged in the business of supplying equipment, design, and drawings, and providing services to the metallurgical sector. During AY 2008-09, the Assessee had receipts of ₹ 41 lakhs from Indian companies towards supervisory activities and drawings, which were unconnected with supply of equipment. The Assessee offered these receipts as FTS. Apart from these, the Assessee had also received certain amounts towards offshore supply of drawings and designs.
The AO considered the receipts towards offshore supply of drawings and designs as FTS and assessed the aggregate income at ₹176 crores. The DRP upheld the assessment order.
Aggrieved by the final order, the Ass
