Bengal Tea & Fabrics Ltd. v. DCIT

12 Taxmann.com 103Income Tax Appellate Tribunal2011#5594 most cited

What is Bengal Tea & Fabrics Ltd. v. DCIT authority for?

Fees for included services are not taxable in India if they do not constitute technical services.

21

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2024.

Also referred to as

Bengal Tea & Fabrics Ltd. v DCIT · section 9(1)(vii) · fees for included services · technical services · international taxation · ITAT

Sections most often in play

Section 9(1)(vii)Section 147Section 40(a)(i)Section 143(3)Section 148Section 195Section 36(1)(vii)Section 37(1)

Issues it is cited on

section 2(15a)section 17(2)(iiia)section 17(2)tds on commissionfees for included servicessection 133a(2a)section 9(1)(vii)section 40(a)(i)section 17enduring benefitfees for technical servicestax treaty

Judgments citing Bengal Tea & Fabrics Ltd. v. DCIT

ITO (It), Kolkata vs. M/S. Electrosteel Casting Limited., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 2249/KOL/2014[2011-2012]Status: DisposedITAT Kolkata07 Jul 2017AY 2011-2012

Bench: Hon’Ble Sri A.T.Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 2249/Kol/2014 Assessment Year : 2011-12 I.T.O. (International Taxation), -Vs.- M/S. Electrosteel Casting Ltd. Kolkata Kolkata [Pan : Aaace 4975 B] (Respondent) (Appellant) For The Appellant : None For The Respondent : Shri Ravi Tulsiyan, Fca Date Of Hearing : 14.06.2017. Date Of Pronouncement : 07.07.2017 Order

For Appellant: NoneFor Respondent: Shri Ravi Tulsiyan, FCA
Section 143(3)Section 195Section 201Section 5(2)Section 9(1)(i)

….2000 make it clear that when no activity is carried out by non-resident commission agent in India, no income is arisen in India. This principle has been upheld in several tribunal decisions such as DCIT Circle 1 (1) Hyderabad vs M/s. Divi's Laboratories Ltd (12 Taxmann.com 103). It may also be mentioned that commission paid to agent does not fall in purview of fees for technical services etc. where explanation to section 9(2) has provided that such income of non-resident shall be deemed to accrue or arise in India under clause (v),(vi) and (vii) of sub section-(1) whether or not the non-resident has rendered ser…