Visteon Corporation vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Visteon Corporation, a foreign company, engaged in providing IT support services to its sister concern in India, was assessed to tax by the Assistant Commissioner of Income-Tax, International Taxation Circle 2(2), Chennai. The assessee filed its return of income for the assessment year 2013-14 on 31.05.2021. The Assessing Officer issued a show-cause notice dated 17.02.2022, requiring the assessee to explain why certain remittances were not offered to tax in the return of income. The assessee maintained that the services provided were not taxable in India under the provisions of the Act and the India-USA Double Taxation Avoidance Agreement. The assessee appealed against the assessment order, arguing that the services rendered did not constitute 'fees for included services' under Article 12 of the India-US DTAA.…

Legal Issues

• 1. Whether the services provided by the assessee to its sister concern in India constitute 'fees for included services' under Article 12 of the India-US DTAA?
• 2. Whether the assessee's appeal should be allowed?

Judgment Outcome

Decided in favour of Assessee.

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