SKECHERS SARL,M vs. ACIT-4(2)(1), MUMBAI

PDF · subscribers
ITA 6067/MUM/2025Status: DisposedITAT Mumbai12 June 2026AY 2023-2423 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the services rendered by the assessee were in the nature of procurement support and commercial agency functions, not FTS as defined in Article 12(4) of the India-Switzerland DTAA. Since the assessee had no Permanent Establishment (PE) in India, the commission income was not taxable in India.

What were the facts?

The assessee, Skechers SARL, a Swiss company, received 'Buying Commission' from its Indian affiliate, SSAPL. The Assessing Officer (AO) recharacterized this commission as Fees for Technical Services (FTS) taxable in India under the India-Switzerland DTAA. The Dispute Resolution Panel (DRP) upheld the AO's view.

What were the issues?

Whether the 'Buying Commission' received by the assessee constitutes Fees for Technical Services (FTS) under the India-Switzerland DTAA, and if so, whether it is taxable in India in the absence of a Permanent Establishment.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii),Section 144C(13),Section 153,Section 234B

AI-generated summary — verify with the full judgment below

Before: SHRI SAKTIJIT DEY & SHRI PRABHASH SHANKAR

For Appellant: Shri Nikhil Tiwari,AR
For Respondent: Shri Krishna Kumar, (Sr. DR)
Hearing: 22.04.2026Pronounced: 12.06.2026

आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant

P a g e | 23 ITA No. 6067/Mum/2025 A.Y. 2023-24 Skechers SARL 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अतधकरण/ ITAT, Bench, Mumbai.

More judgments on Section 9(1)(vii)

All 1,640 judgments and leading authorities on Section 9(1)(vii) →

Recent GST High Court judgments

Search GST case law →