DELOITTE HASKINS AND SELLS LLP,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME-TAX , MUMBAI

ITA 319/MUM/2024Status: DisposedITAT Mumbai30 December 2025AY 2016-1731 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the assessee's grounds regarding disallowance under Section 40(a)(i) for payments to non-residents, following previous consistent rulings. The issue of payments to retired partners was also decided in favor of the assessee, referencing prior favorable tribunal orders.

What were the facts?

The assessee, Deloitte Haskins and Sells LLP, appealed against the CIT(A)'s orders confirming disallowances under Section 40(a)(i) for payments to non-residents and additions for payments to retired partners. The appeals also concerned additions for unreconciled transactions and credit for TDS.

What were the issues?

Whether payments to non-resident group entities for services rendered outside India are subject to disallowance under Section 40(a)(i) for non-deduction of TDS. Whether payments made to retired partners as per the partnership deed are deductible as business expenditure or are a diversion of income by overriding title.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 37(1),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Appellant: Shri P.J. Pardiwala, Sr. Advocate
For Respondent: Shri Krishna Kumar Sr. DR
Hearing: 17.11.2025Pronounced: 32.12.2025

PER GIRISH AGRAWAL, ACCOUNTAN

The order continues below.

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