ACIT, NEW DELHI vs. SH. RAJESH KUMAR SAROJ, NEW DELHI

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ITA 5880/DEL/2014Status: DisposedITAT Delhi28 September 2017AY 2010-113 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the foreign agent rendered services abroad, the commission was remitted abroad, and the agent had no PE in India, Section 195 of the Income Tax Act was not attracted. Therefore, the addition made by the Assessing Officer was not justified.

What were the facts?

The Assessing Officer added Rs. 1,28,32,580/- to the assessee's income for non-deduction of TDS on payments made to a foreign agent for export commission. The assessee is an exporter with no domestic sales, and the foreign agent had no Permanent Establishment in India.

What were the issues?

Whether TDS under Section 195 is applicable on commission paid to a foreign agent for services rendered outside India, where the agent has no Permanent Establishment in India.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 195

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’, NEW DELHI

Before: SH. N.K. SAINI & SH. KULDIP SINGH

Hearing: 25.09.2017Pronounced: 28.09.2017

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘F’, NEW DELHI BEFORE SH. N.K. SAINI, ACCOUNTANT MEMBER AND SH. KULDIP SINGH, JUDICIAL MEMBER Assessment Year : 2010-11 ACIT, Circle-20(1), New Delhi Vs. Sh. Rajesh Kumar Saroj, Cottage No. 1, Oberoi Apartments, 2, Sham Nath Marg, New Delhi PAN : ACOPS5597C (Appellant) (Respondent) Appellant by Sh. Deepak Garg, Sr.DR Respondent by Sh. S.N. Nanda, CA Date of hearing 25.09.2017 Date of pronouncement 28.09.2017 ORDER PER KULDIP SINGH, JM.:

The appellant (hereinafter referred to as ‘the Revenue’) by filing the present appeal sought to set aside the impugned order dated 20.05.2014 passed by learned Commissioner of Income Tax (Appeals)-XXII, New Delhi, on the grounds, inter alia, that: (i) whether on the facts or circumstances of the case, the learned CIT(A) has erred in deleting the addition of Rs.1,28,32,580/- made by the Assessing Officer on account of non-deduction of TDS on payments to non-resident foreign agent M/s. Partner Agency by the assessee. (ii) the CIT(A) did not appreciate the facts of the case that export commission paid to the various parties situated in different foreign countries, by the assessee is deemed to accrue or arise in India and attracted provisions of Section 195 of I.T. Act, 1961.

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