RANE ENGINE VALVES LIMITED,CHENNAI vs. DCIT, CHENNAI

ITA 1498/CHNY/2017Status: DisposedITAT Chennai03 July 2024AY 2012-13Bench: SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI AMITABH SHUKLA (Accountant Member)43 pages
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What did the Tribunal hold?

The Tribunal held that the services rendered were marketing support and did not 'make available' technical knowledge to the assessee. Therefore, the payment did not constitute 'fee for technical services' under the DTAA and the disallowance was not justified.

What were the facts?

The assessee paid professional fees to a non-resident entity for marketing support services. The Assessing Officer disallowed the expense for non-deduction of TDS, invoking Section 40(a)(i). The assessee contended that the services were not 'fee for technical services' and were covered under the India-Germany DTAA.

What were the issues?

Whether professional fees paid to a non-resident for marketing support services are disallowable under Section 40(a)(i) for non-deduction of TDS, and if such payments constitute 'fee for technical services' under the relevant DTAA.

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 195,Section 9(1)(vii)

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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND

Hearing: 09.05.2024Pronounced: 03.07.2024

PER MAHAVIR SINGH, VICE PRESIDENT:

These appeals by the assessee are arising out of different orders of the Commissioner of Income Tax (Appeals)-3, Chennai in ITA Nos.67/2014-15, 53/2015-16/CIT(A)-3, 47/16-17/A-3, 195/16-17/A-3 & 107/CIT(A)-3/2017-18 dated 28.02.2017, 27.10.2017, 29.09.2017 & 17.03.2020 respectively. The assessments were framed by the Joi

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