INTAS PHARMACEUTICALS LTD.,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1), AHMEDABAD

ITA 222/AHD/2021Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16Bench: S/SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND MAKARAND V.MAHADEOKAR (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision regarding commission paid to non-resident agents, stating that since services were rendered outside India, the income was not taxable in India, and thus TDS was not required. Consequently, the disallowance under Section 40(a)(i) was not sustainable.

What were the facts?

The assessee, engaged in pharmaceutical business, filed its return for AY 2015-16. The Assessing Officer made several additions and disallowances, including transfer pricing adjustments and disallowance of commission paid to non-residents. The CIT(A) partly allowed the assessee's appeal.

What were the issues?

Whether commission paid to non-resident agents for services rendered outside India is taxable in India, and if TDS was required, leading to disallowance under Section 40(a)(i).

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 195,Section 9(1)(i),Section 5(2)(b)

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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

For Appellant: Shri S.N. Soparkar, Sr.Advocae and Shri Parin Shah, AR, Shri Ragnesh Das, CIT-DR
Hearing: 28/04/2025Pronounced: 21/05/2025

आदेश आदेश

PER MAKARAND V.MAHADEOKAR, AM: These cross-appeals by the assessee and the revenue are directed against the order dated 04.08.2021 passed by the Commissioner of Income

ITA No.281 and 222/Ahd/2021 2

Tax (Appeals)-13, Ahmedabad [he

The order continues below.

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