TURF ESTATE JV,MUMBAI vs. ASSISSTANT COMMISSIONER OF INCOME TAX CIRCLE - 20(3), MUMBAI

ITA 6923/MUM/2024Status: DisposedITAT Mumbai27 January 2026AY 2017-18Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that payments to non-residents from the US and Canada did not qualify as Fees for Technical Services (FTS) under the respective DTAAs as the technology was not 'made available'. However, payments to the non-resident from Thailand were considered FTS under the Indian Income Tax Act, as the India-Thailand DTAA lacked a specific provision for FTS, leading to their disallowance.

What were the facts?

The assessee paid consultancy fees to non-resident entities for architectural and engineering services. The Assessing Officer disallowed these expenses for non-deduction of TDS, and the CIT(A) upheld the disallowance. The assessee argued that the services did not qualify as 'fees for technical services' under the relevant Double Taxation Avoidance Agreements (DTAAs) because the technology was not 'made available'.

What were the issues?

Whether consultancy services rendered by non-residents constitute 'fees for technical services' under DTAAs, and consequently, whether TDS was required to be deducted, leading to disallowance of expenses.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 40(a)(ia),Section 9(1)(vii),Section 195,Section 90(2)

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Income Tax Appellate Tribunal, “I” BENCH MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

Hearing: 30.10.2025Pronounced: 27.01.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of ADDL/JCIT (A)-2 NOIDA, vide order no. ITBA/APL/S/250/2024- 25/1070036124(1), dated 30.10.2024, passed against the assessment order by Assistant Commissioner Of Income Tax, Circle 20(3), Mumbai, u/s. 143(3) of the Income-tax Act (hereinafter referred to as the “Act”), dated 30.12.2019 for Assessment Year 2017-18. 2. Grounds taken by assessee are reproduced as under:

“1. On the facts and in the circumstances of the appellant company's case and in law, the Ld. Addl./ Jt. Commissioner of Income Tax (Appeals) - 2, Noida, has erred in not quashing the assessment order passed on 3

The order continues below.

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