DEPUTY COMMISSIONER OF INCOME TAX, JABALPUR vs. ORIENT PAPER MILLS PROP. M/S ORIENT PAPERS &,

ITA 35/JAB/2014Status: DisposedITAT Jabalpur20 September 2023AY 2009-1017 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding that no income accrued to the non-resident in India as the plant was supplied from outside and assembled by the assessee using local contractors. Consequently, no TDS was deductible.

What were the facts?

The Revenue appealed against the deletion of demands raised for non-deduction of TDS on payments made to an Italian company for a tissue paper manufacturing plant. The Assessing Officer considered it a composite contract requiring TDS, while the assessee argued it was primarily a supply contract with minimal supervision services.

What were the issues?

Whether payments for a manufacturing plant supply contract, including supervision, attracted TDS provisions in India. Whether the non-resident company had a permanent establishment or taxable income in India under the Act or the India-Italy DTAA.

Which sections of the Income-tax Act were involved?

Section 195,Section 201(1),Section 201(1A),Section 5,Section 9

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, JABALPUR BENCH, JABALPUR

Before: SHRI OM PRAKASH KANTSHRI PAVAN KUMAR GADALE

For Appellant: Shri Gautam Jain, Adv
For Respondent: Shri Shravan Kumar Gotru, CIT DR, Shri Gautam Jain, Adv
Hearing: 14/09/2023Pronounced: 20/09/2023

PER OM PRAKASH KANT, A.M.: These two appeals by the Revenue are directed against a common order dated 31/10/2013 passed by the Learned commissioner of Income-tax(Appeals)-Raipur, Camp Jabalpur [in short the “Ld. CIT(A)”] for assessment years 2008-09 and 2009-10 respectively, in relation to order passed by the Ld. Assessing Officer under section 201(1) and 201(1A) of the Income-tax Act, 1961 ( in ITA Nos.34 & 35/Jab/2014 DCIT vs Orient Paper Mills short “the Act”) for non-deduction of tax at source on payment made to Italian company for supply of manufacturing plant of tissue paper.

The order continues below.

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