ACIT CIRCLE-10(2), NEW DELHI vs. GRAZIANO TRASMISSIONI INDIA PVT LTD, NEW DELHI

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ITA 1612/DEL/2020Status: DisposedITAT Delhi15 February 2023AY 2011-124 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, noting that the issue had been decided in favor of the assessee by a coordinate bench in previous assessment years. The revenue's counsel conceded to this point.

What were the facts?

The revenue appealed against the CIT(A)'s deletion of disallowance for non-deduction of TDS on payments made to a foreign entity. The assessee had classified these payments as commission, while the revenue argued they were fees for technical services.

What were the issues?

Whether the payments made to the foreign entity were in the nature of commission or fee for technical services, and consequently, whether TDS was deductible.

Which sections of the Income-tax Act were involved?

Section 40(a)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA

Hearing: 15/02/2023Pronounced: 15/02/2023

This appeal by the revenue is preferred against the order of the CIT(A)-36, Delhi dated 20.02.2020 pertaining to A.Y.2011-12.

2.

The solitary grievance of the revenue read as under :-

1.

Whether on the facts and in the circumstances of the case and in law Ld. CIT(A) is correct in deleting the disallowance of Rs.1,54,34,792/- made on account of non-deduction of TDS on the payment made to M/s. Graziano Transmission North America, USA holding the same as commission ignoring the fact that the payment is actually in the nature of fee for technical services and the assessee only named the same as commission o enjoy tax benefit.

3.

At the very outset the Counsel for the assessee stated that the impugned issue has been decided by this Tribunal in assessee’s own case in earlier assessment years by the coordinate Bench and the CIT(A) while allowing the appeal of the assessee has followed the decision of the Tribunal. The DR fairly conceded to this.

4.

We have carefully perused the orders of the authorities below. The impugned issue relates to the disallowance on account of non deduction of tax on export commission paid to M/s. Graziano Transmission India Private Limited, North America USA. Similar disallowances were made in A.Y.2010-11, 2012-13 and 2013-14 and the matter travelled up to the Tribunal and the coordinate Bench in for A.Y.2010-11, 1820/Del/2018 and 1821/Del/2018 for A.Y.2012-13 and 2013- 14 has considered the quarrel and decided the issue in favour of the assessee. The relevant findings given by the coordinate Bench in A.Y.2010-11 in ITA No.2575/Del/2016 read as under:-

5.

In A.Y.2012-13 and 2013-14 the coordinate Bench has followed the decision given in A.Y.2010-11.

6.

Since the CIT(A) has followed the decision of the Tribunal while allowing the appeal of the assessee. We do not find any reason to interfere with the findings of the CIT(A). The appeal of the revenue is dismissed.

7.

Decision announced in the open court on 15.02.2023.

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