ARJUNA NATURAL EXTRACTS LTD,ERNAKULAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, KOCHI

ITA 916/COCH/2025Status: HeardITAT Cochin11 August 2026AY 2013-20147 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the payments were for professional services covered by Article 15 of the India-USA DTAA and did not make available technical knowledge as per Article 12. Therefore, tax was not required to be deducted at source.

What were the facts?

The assessee made payments to US residents for patent registration and consultancy services. The Assessing Officer disallowed these payments under Section 40(a)(i) for failure to deduct TDS, treating them as fees for technical services. The CIT(A) upheld this disallowance.

What were the issues?

Whether payments to US residents for patent legal services and consultancy for research and marketing constitute fees for technical services requiring TDS under Section 195, or are covered by the India-USA DTAA.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 195

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI KESHAV DUBEY

For Appellant: Adv S Sridhar
For Respondent: Ms. Neethu S, Snr DR

Heard together (2 matters)

S.A. No. 100/Coch/2025
ITA No. 916/Coch/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER PRASHANT MAHARISHI, VICE – PRESIDENT

1.

S.A. No. 100/Cochin/2025 has been filed by Arjuna Natural Extracts Ltd. (the assessee/applicant/appellant) for assessment year 2013–14, seeking a direction to the learned Assessing Officer to keep the outstanding demand of ₹830,480 in abeyance until the disposal of ITA No. 916/Cochin/2025. 2. The assessee/applicant filed an appeal against the appellate order passed by the learned CIT(A) on 17 September 2025, whereby the assessee’s appeal against the assessment order dated 9 March 2016, passed by the Assistant Commissioner of Income Tax, Corporate Circle 1(1), Cochin (the learned Assessing

The order continues below.

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