DCIT, CIR 16(2), MUMBAI vs. M/S KPMG ASSURANCE AND CONSULTING SERVICES LLP, MUMBAI

ITA 2273/MUM/2023Status: DisposedITAT Mumbai12 August 2024AY 2013-14110 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the provisions of Double Taxation Avoidance Agreements (DTAAs) are to be applied in conjunction with the Income Tax Act, and where DTAA provisions are more beneficial to the assessee, they shall prevail. It also noted that fees for technical services (FTS) are a species of business profits and are governed by specific DTAA articles.

What were the facts?

The assessee, engaged in business advisory, taxation, and audit services, claimed deductions for professional fees paid to non-residents. The Assessing Officer disallowed these deductions, holding that the assessee failed to deduct tax at source on these payments, which were deemed taxable in India.

What were the issues?

The primary issue was whether the professional fees paid to non-residents were taxable in India and if the assessee had correctly complied with TDS provisions. The interplay between domestic tax law and DTAA provisions for taxing FTS was also examined.

Which sections of the Income-tax Act were involved?

Section 4,Section 5(2),Section 9(1)(vii),Section 90(1),Section 90(2)

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Cases cited in this judgment(2)Show list

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Heard together (3 matters)

ITA No. 2272/MUM/2023
CO No. 126/MUM/2023
ITA No. 2411/MUM/2023

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

IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 2272/MUM/2023 (Assessment Year: 2012-13) Deputy Commissioner of Income Tax, Circle 16(2), Mumbai, Room No. 625, 6th Floor, Aayakar Bhavan, M.K. Road, Mumbai – 400020 Appellant M/s KPMG Assurance and Consulting Services LLP, 8th Floor, Tower B, DLF Building No. 10, Gurgaon - 122002, Haryana [PAN: AAAFK1415H] Vs Respondent CO No. 126/MUM/2023 (Arising out of ITA No. 2272/Mum/2023) (Assessment Year: 2012-13) M/s KPMG Assurance and Consulting Services LLP, 2nd Floor, Block T2 (B Wing), Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi - 400011 [PAN: AAAFK1415H] Appellant Deputy Commissioner of Income Tax, Circle 16(2), Mumbai, Room No. 479, 4th Floor, Aayakar Bhavan, M.K. Road, Churchgate, Mumbai – 400020 Vs Respondent ITA No. 2411/MUM/2023 (Assessment Year: 2012-13) M/s KPMG Assurance and Consulting Services LLP, 2nd Floor, Block T2 (B Wing), Lodha Excelus, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai - 400011 [PAN: AAAFK1415H] Appellant Assistant Commissioner of Income Tax, Circle 16(2), Mumbai, Room No. 625, 6th Fl

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