CHOWRINGHEE RESIDENCY PVT. LTD.,KOLKATA vs. I.T.O.(I.T.), WARD - KOLKATA,, KOLKATA

ITA 2642/KOL/2025Status: DisposedITAT Kolkata20 May 2026AY 2018-20199 pages
AI SummaryAllowed

What were the facts?

The assessee, a real estate developer, engaged a UAE company for technical consultancy services for a high-rise project. The assessee remitted payments to the UAE company, claiming them as business profits under the India-UAE DTAA and not deducting TDS. The AO treated these remittances as 'Fees for Technical Services' (FTS) taxable in India and raised a demand for TDS and interest.

What did the Tribunal hold?

The Tribunal held that the services rendered were purely advisory and consultative, without transferring any technical know-how that would enable the assessee to use it independently. Furthermore, the India-UAE DTAA does not have a specific article for FTS, and in the absence of a Permanent Establishment (PE) in India, the business profits are not taxable in India.

What were the issues?

Whether the payments made for technical consultancy services constitute 'Fees for Technical Services' taxable in India under the Income Tax Act, and whether the India-UAE DTAA overrides domestic law provisions in the absence of an FTS article.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri S.K. Tulsiyan
For Respondent: Shri Dheeraj, Sr. DR
Hearing: 18.05.2026Pronounced: 20.05.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax Appeal, Kolkata-22, (hereinafter referred to as the “Ld. CIT(A)”] dated 26.08.2025 for the AY 2018-19. 2. At the outset, we note that the appeal of the assessee is barred by limitation by 14 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and , hence, we condone the delay and adjudicate the appeal. Chowringhee Residency Pvt. Ltd.; A.Y.2018-19

3.

The o

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