M/S. TECNOTREE CONVERGENCE PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BANGALORE

ITA 3156/BANG/2018Status: DisposedITAT Bangalore15 December 2021AY 2012-1320 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the services provided by the foreign agents were primarily marketing support, not managerial, technical, or consultancy services. Therefore, the payments did not fall under 'Fee for Technical Services' and income accrued abroad, not in India.

What were the facts?

The assessee paid commission to foreign agents without deducting TDS. The AO disallowed these expenses, and the CIT(A) confirmed the disallowance, viewing the services as 'Fee for Technical Services'.

What were the issues?

Whether commission payments to foreign agents for marketing support services constitute 'Fee for Technical Services' requiring TDS deduction under Indian tax law.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 9(1)(vii)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, BANGALORE BENCHES “B”, BANGALORE

Before: Shri B.R.Baskaran, AM & Smt.Beena Pillai, JM

Hearing: 14.12.2021Pronounced: 15.12.2021

Heard together (3 matters)

ITA No.3156/Bang/2018
ITA No.3157/Bang/2018
ITA No.3158/Bang/2018

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

PER BENCH:- All the three appeals filed by the assessee are directed against the orders passed by LD CIT(A) and they relate to the assessment years 2012-13, 2014-15 and 2015-16. All these three appeals were heard together and are being disposed of by this common order for the sake of convenience.

2.

In all the three years, one common issue relating to disallowance of commission payments made to non-resident agents u/s 40(a)(i) of the Act for non-deduction of tax at source. In AY 2012-13, the assessee is also contesting the

The order continues below.

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