CIT(A) v. Eon Technology Pvt. Ltd.

343 ITR 366High Court2012#1964 most cited

What is CIT(A) v. Eon Technology Pvt. Ltd. authority for?

Payments to a non-resident agent for services rendered outside India, where the agent has no permanent establishment (PE) or business connection in India, are not chargeable to tax in India. Consequently, there is no obligation to deduct tax at source under Section 195, and no disallowance under Section 40(a)(i) can be made.

58

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2013 to 2026.

Also referred to as

CIT v. Eon Technology · 343 ITR 366 · Section 195 · Section 40(a)(i) · Section 9(1)(i) · TDS non-resident · business connection · permanent establishment · income chargeable in India · foreign agent commission · services outside India · disallowance 40(a)(i)

Sections most often in play

Section 143(3)Section 195Section 40(a)(i)Section 9(1)(i)Section 40(a)(ia)Section 148Section 172Section 195(1)

Issues it is cited on

section 9(1)(i)section 9(1)(vii)(b)section 195(1)business connectionsection 9(1)(vii)section 195permanent establishmentsection 40(a)(i)section 9(1)section 9(1)(vi)fees for technical servicesnon-resident

Judgments citing CIT(A) v. Eon Technology Pvt. Ltd.

ACIT, New Delhi vs. M/S. Punjab Stainless Steel Industries, New Delhi

Appeal is allowed

ITA 6036/DEL/2016[2012-13]Status: DisposedITAT Delhi04 Jun 2019AY 2012-13

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 195Section 9(1)(vii)

…Ld. AR further submitted that CIT(A) rightly deleted the disallowance made by the Assessing Officer on account of foreign commission expenses for which the Ld. AR relied upon the Hon’ble Delhi High Court decisions in case of CIT(A) vs Eon Technology Pvt. Ltd. 343 ITR 366. The Ld. AR also relied upon the withdrawal of earlier Circular No. 23 dated 23/7/1969 and Circular No. 786 dated 7/2/2000 by CBDT. 7. We have heard both the parties and perused the material available on record. The CIT(A) has rightly deleted this addition as the commission paid to non-resident cannot be treated as assessee’s income from other s…

Punjab Stainless Steel Inds., New Delhi vs. ACIT, New Delhi

Appeal is allowed

ITA 5532/DEL/2016[2012-13]Status: DisposedITAT Delhi04 Jun 2019AY 2012-13

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 195Section 9(1)(vii)

…Ld. AR further submitted that CIT(A) rightly deleted the disallowance made by the Assessing Officer on account of foreign commission expenses for which the Ld. AR relied upon the Hon’ble Delhi High Court decisions in case of CIT(A) vs Eon Technology Pvt. Ltd. 343 ITR 366. The Ld. AR also relied upon the withdrawal of earlier Circular No. 23 dated 23/7/1969 and Circular No. 786 dated 7/2/2000 by CBDT. 7. We have heard both the parties and perused the material available on record. The CIT(A) has rightly deleted this addition as the commission paid to non-resident cannot be treated as assessee’s income from other s…

Punjab Stainless Steel Industries, New Delhi vs. ACIT, New Delhi

Appeal is allowed

ITA 1147/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Jun 2019AY 2011-12

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 195Section 9(1)(vii)

…Ld. AR further submitted that CIT(A) rightly deleted the disallowance made by the Assessing Officer on account of foreign commission expenses for which the Ld. AR relied upon the Hon’ble Delhi High Court decisions in case of CIT(A) vs Eon Technology Pvt. Ltd. 343 ITR 366. The Ld. AR also relied upon the withdrawal of earlier Circular No. 23 dated 23/7/1969 and Circular No. 786 dated 7/2/2000 by CBDT. 7. We have heard both the parties and perused the material available on record. The CIT(A) has rightly deleted this addition as the commission paid to non-resident cannot be treated as assessee’s income from other s…

ACIT, New Delhi vs. M/S. Punjab Stainless Steel, Delhi

Appeal is allowed

ITA 1107/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Jun 2019AY 2011-12

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 195Section 9(1)(vii)

…Ld. AR further submitted that CIT(A) rightly deleted the disallowance made by the Assessing Officer on account of foreign commission expenses for which the Ld. AR relied upon the Hon’ble Delhi High Court decisions in case of CIT(A) vs Eon Technology Pvt. Ltd. 343 ITR 366. The Ld. AR also relied upon the withdrawal of earlier Circular No. 23 dated 23/7/1969 and Circular No. 786 dated 7/2/2000 by CBDT. 7. We have heard both the parties and perused the material available on record. The CIT(A) has rightly deleted this addition as the commission paid to non-resident cannot be treated as assessee’s income from other s…

ITO 3(3)2, Mumbai vs. Shamrock Pharmachemi P.Ltd, Mumbai

In the result appeal of the Revenue in ITA No

ITA 1774/MUM/2013[2009-10]Status: DisposedITAT Mumbai30 May 2019AY 2009-10

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.1774/Mum/2013 (नििाारण वर्ा / Assessment Year: 2009-10) बिाम/ Ito 3(3)2, M/S. Shamrock R.No. 602, Pharmachemi Pvt. Ltd., Aayakar Bhavan, 83E,Hansraj Pragi Bldg., V. M.K Road, Opp. Dr. E Moses Road, Mumbai 400020 Worli, Mumbai-400018 स्थायी ऱेखा सं./ Pan: Aaacs6290H (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri. Ashim Kumar Modi (Cit- Dr), Shri V. Justin & Ms. Chaitna Ajaria Shri. Bharat L. Gandhi Assessee By: सुनवाई की तारीख /Date Of Hearing : 01.03.2019 घोषणा की तारीख /Date Of Pronouncement : 30.05.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Revenue, Being Ita No. 1774/Mum/2013, Is Directed Against Appellate Order Dated 29.10.2012, Passed By Learned Commissioner Of Income Tax (Appeals)-7, Mumbai (Hereinafter Called ―The Cit(A)‖) In Appeal Number Cit(A)-7/Ito-3(3)(2)/It-166/11-12, For Assessment Year 2009-10, The Appellate Proceedings Had Arisen Before Learned Cit(A) From The Assessment Order Dated 29.12.2011 Passed By Learned Assessing Officer (Hereinafter Called ―The Ao‖) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called ―The Act‖) For Ay 2009-10. I.T.A. No.1774/Mum/2013

For Respondent: Shri. Ashim Kumar Modi (CIT-
Section 143(3)Section 195Section 68

…allowable expenditure. In Toshoku Ltd., supra, the Supreme Court held that payments to agents for performance of services outside India are not liable to be taxed in India. 35. In CIT v. EON Technology (P.) Ltd. [2011] 15 Taxmann.com 391/203 Taxman 266/[2012] 343 ITR 366 (Delhi), the High Court of Delhi held that payment of sales commission to non-resident who operates outside the country would not attract tax, if payment was remitted abroad directly. Merely because an entry had been made in the books of accounts of the appellant/assessee, that would not mean that the non-resident agent had received payment in In…

M/S. Satyam Polyplast, Jaipur vs. Assistant Commissioner of Income Tax, Circle-4, Jaipur

In the result, the appeal filed by the assessee is allowed

ITA 158/JPR/2019[2015-16]Status: DisposedITAT Jaipur13 May 2019AY 2015-16
For Appellant: Shri V.K. Jain (C.A.)For Respondent: Shri K.C. Meena (ACIT)
Section 195Section 195(1)Section 40

…Polyplast vs. DCIT order of the ld. CIT(A) for the assessment year 2013-14 and submitted that the ld. CIT(A) has deleted an identical disallowance made by the AO by following decision of Hon’ble Delhi High Court in case of CIT vs. EON Technologies (P) Ltd. 343 ITR 366 as well as the decision of Mumbai Benches of the Tribunal in case of Armayesh Global vs. ACIT 51 SOT 564. The ld. AR has also relied upon the following decisions:- • CIT vs. Fluidtherm Technology (P) Ltd. (2015 Taxman.com 87 (Madras). • CIT vs. Faizan Shoes (P) Ltd. 367 ITR 155. • CIT vs. Gujarat Reclaim Rubber Products (P) Ltd. ( Mumbai High Co…

Sahasra Electronics (P) Ltd., New Delhi vs. DCIT, Circle-22(1), New Delhi

In the result appeals of the assessee for both the years are allowed

ITA 8049/DEL/2018[2010-11]Status: DisposedITAT Delhi18 Apr 2019AY 2010-11

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri N.K. Bansal, Sr. DR
Section 195Section 4Section 40Section 9

…o technical services are involved in respect of the payments of commission to the non-resident sales agents, and the payments are only towards the commission for sales. 11. He placed reliance on the decisions reported in CIT vs. EON Technology (P) Ltd (2012) 343 ITR 366 (Delhi); DCIT vs. Divi's laboratories Ltd (2011) 10 ITR (T) 501 (Hyderabad), Ciena Communications India Private Limited vs. ACIT (2018) 98 taxmann.com 458 (Delhi-Trib) in support of his contention that in the absence of the learned Assessing Officer establishing on the basis of relevant material that there is business connection, llearned Assess…

M/S Sahasra Electronics Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result appeals of the assessee for both the years are allowed

ITA 1189/DEL/2013[2009-10]Status: DisposedITAT Delhi18 Apr 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri N.K. Bansal, Sr. DR
Section 195Section 4Section 40Section 9

…o technical services are involved in respect of the payments of commission to the non-resident sales agents, and the payments are only towards the commission for sales. 11. He placed reliance on the decisions reported in CIT vs. EON Technology (P) Ltd (2012) 343 ITR 366 (Delhi); DCIT vs. Divi's laboratories Ltd (2011) 10 ITR (T) 501 (Hyderabad), Ciena Communications India Private Limited vs. ACIT (2018) 98 taxmann.com 458 (Delhi-Trib) in support of his contention that in the absence of the learned Assessing Officer establishing on the basis of relevant material that there is business connection, llearned Assess…

Giesecke & Devrient (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal is partly allowed

ITA 2544/DEL/2014[2009-10]Status: DisposedITAT Delhi29 Mar 2019AY 2009-10

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2009-10

Section 143(3)Section 144CSection 144C(10)

…position has been consistently affirmed / followed / reiterated in the following judicial precedents :- i. Director of Income-tax (International Taxation)-II vs Panalfa Autoelektrik Ltd. [2014] 272 CTR 117 (Delhi) ii. ClT v. Eon Technology (P.) Ltd. [2012] 343 ITR 366/[2011] (Delhi) iii. DCIT v Elitecore Technologies Pvt. Ltd., [2017] 80 taxmann.com 6 (Ahmedabad- Trib) iv. DCIT v Welspun Corporation., [2017] 77 tamann.com 165 (Ahmedabad- Trib) v. Pankaj A Shah v ITO, [2014] 47 taxmann.com 205 (Ahmedabad-Trib) 44 70. Based on our above detailed submission, it is submitted that keeping in view the facts and cir…

ACIT - 2(2)(1), Mumbai vs. Indo Industries Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 7462/MUM/2017[2014-15]Status: DisposedITAT Mumbai01 Feb 2019AY 2014-15

Bench: Shri G Manjunatha () & Shri Ravish Sood () Acit-2(2)(10, Mumbai Vs M/S Indo Industries Ltd A-1, Samir Apartments 169, S.V. Road, Andheri (W), Mumbai-58 Pan : Aaaci8197D Appellant Respondednt

Section 143(3)Section 195Section 40Section 9(1)(vii)

…of income in India. We found that the non-resident brokers have not rendered any services in India, therefore, commission income neither accrued nor arose in India in view of the decision of the Hon'ble Delhi High Court in the case of Eon echnology Pvt. Ltd., 343 ITR 366 (Del). There is no dispute to the well settled roposition that provisions of Section 195 does not apply when no income is found to be taxable in India, therefore, there was no reason for making any disallowance under provisions of Section 40(a)(i) in view of decision of the Hon'ble Supreme Court in the case of G.E.India Technology Centre Pvt. Ltd…

ACIT, New Delhi vs. Smt. Sangeeta Khanna, New Delhi

In the result, the appeal filed by the Revenues is dismissed

ITA 2727/DEL/2015[2011-12]Status: DisposedITAT Delhi16 Nov 2018AY 2011-12

Bench: Shri S.K. Yadav & Shri O.P. Kant

For Appellant: Shri Ajay Sabharwal, CAFor Respondent: Ms. Ashima Neb, Sr. DR
Section 143(3)Section 195Section 195(2)Section 40

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA Nos.2726, 2727/Del/2015 Asstt. Years: 2006-07, 2011-12 ACIT Smt. Sangeeta Khanna Circle-44(1), Room No. 1908, RZ/A-4, Dwarka Puri, E-2, Civic Centre, Minto Road Palam Road, New Delhi – 110 002 New Delhi-110 045 Vs. PAN ABAPK9156E (Appellant) (Respondent) Department by: Ms. Ashima Neb, Sr. DR Assessee by : Shri Ajay Sabharwal, CA Date of Hearing 15/11/2018 Date of 16/11/2018 pronouncement O R D E R PER O.P. KANT, A.M. These two appeals by the Revenue are directed against…

ACIT, New Delhi vs. Smt. Sangeeta Khanna, New Delhi

In the result, the appeal filed by the Revenues is dismissed

ITA 2726/DEL/2015[2006-07]Status: DisposedITAT Delhi16 Nov 2018AY 2006-07

Bench: Shri S.K. Yadav & Shri O.P. Kant

For Appellant: Shri Ajay Sabharwal, CAFor Respondent: Ms. Ashima Neb, Sr. DR
Section 143(3)Section 195Section 195(2)Section 40

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA Nos.2726, 2727/Del/2015 Asstt. Years: 2006-07, 2011-12 ACIT Smt. Sangeeta Khanna Circle-44(1), Room No. 1908, RZ/A-4, Dwarka Puri, E-2, Civic Centre, Minto Road Palam Road, New Delhi – 110 002 New Delhi-110 045 Vs. PAN ABAPK9156E (Appellant) (Respondent) Department by: Ms. Ashima Neb, Sr. DR Assessee by : Shri Ajay Sabharwal, CA Date of Hearing 15/11/2018 Date of 16/11/2018 pronouncement O R D E R PER O.P. KANT, A.M. These two appeals by the Revenue are directed against…

ITO, New Delhi vs. Sh. Kulbeer Singh, New Delhi

ITA 5204/DEL/2014[2010-11]Status: DisposedITAT Delhi03 Oct 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishiito, Vs. Kulbeer Singh, Ward-26(1), H-432, Vikas Puri, New Delhi New Delhi Pan: Amqps5847P (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Shri Amit Jain, Sr. DR
Section 143Section 195Section 197Section 40Section 9

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITO, Vs. Kulbeer Singh, Ward-26(1), H-432, Vikas Puri, New Delhi New Delhi PAN: AMQPS5847P (Appellant) (Respondent) Revenue by : Shri Amit Jain, Sr. DR Assessee by: None Date of Hearing 25/07/2018 Date of pronouncement 03/10/2018 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the Income Tax Officer, Ward – 26 (1), New Delhi against the order of The Commissioner Of Income Tax Appeals – XXIV , New Delhi dated 3/7/2014 for AY 2010 – 11 where the only i…

Asst CIT 19(3), Mumbai vs. S.K. Age Exports, Mumbai

The appeal of the Revenue is dismissed

ITA 2524/MUM/2017[2013-14]Status: DisposedITAT Mumbai21 Aug 2018AY 2013-14

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2013-14 Acit-19(3), M/S S.K. Age Exports, R. No.206M 2Nd Floor, 3-A, Shivsagar Estate, Dr. बनाम/ Matru Mandir, Annie Besant Road, Worli, Vs. Tardeo Raod, Mumbai-400018 Mumbai-400007 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaafs4534R

Section 143(3)Section 195

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ,‘जे’’,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘J’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी मनोज कुमार अ"वाल, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Manoj Kumar Aggarwal, Accountant Member Assessment Year: 2013-14 ACIT-19(3), M/s S.K. Age Exports, R. No.206m 2nd Floor, 3-A, Shivsagar Estate, Dr. बनाम/ Matru Mandir, Annie Besant Road, Worli, Vs. Tardeo Raod, Mumbai-400018 Mumbai-400007 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No. AAAFS4534R राज"व क" ओर से / Revenue by Shri A. Mohan- DR "नधा"रती क" ओर से / Assessee by Shri…

ACIT, New Delhi vs. M/S. Maharani Enterprises, Delhi

The appeal of the Revenue is dismissed and Cross- Objection of the assessee is allowed

ITA 5806/DEL/2014[2011-12]Status: DisposedITAT Delhi24 Jul 2018AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 142(1)Section 143(1)Section 143(2)Section 194CSection 40

…ld to be taxable in India u/s 5(2)(b) r.w.s 9(l)(i) of the into account the inbuilt concept of existence of ‘ business connection’ in the above 8 section. The above finding is contrary to the decision of the Hon'ble Delhi High Court in EON Technologies P Ltd 343 ITR 366 (Case Law Compilation pages 1-6). It may also be noted that the decision of the Supreme Court in CIT Vs Toshoku Ltd 125 ITR 525 still holds ground where such payments were held to non-toxable in India in the absence of T&) business connection of the payee agent in India and no activities are done by such agent in India. The relevance of the rulin…

DCIT, New Delhi vs. M/S. Sterling Ornaments (P) Ltd., New Delhi

In the result, the Appeal filed by the Revenue

ITA 4395/DEL/2014[2011-12]Status: DisposedITAT Delhi27 Jun 2018AY 2011-12

Bench: Shri H.S. Sidhu & Shri N.K. Billaiya

For Appellant: Sh. Piyush Kaushik, AdvFor Respondent: Sh. K. Tewari, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 195Section 195(2)Section 40

…preme Court of 125 ITR 525 SC. iv) Decision of Hon’ble Madras High Court in Ltd. (2014) 369 ITR 96. v) Decision of the Hon’ble Madras High Court Ltd. (2014) 367 ITR 155. vi) Decision of Hon’ble Delhi High Court in the case of CIT vs. EON Technology P. Ltd. 343 ITR 366 (Del.) vii) Decision of Delhi ITAT in the case of Divya Creation vs. ACIT (2017) 86 taxmann.com 276 viii) Decision of Delhi ITAT dated 23.4.2018 in the case of ACIT vs. Smt. Sangeeta Khanna 2018-TII-144-ITAT-Del-Intl. ix) Decision of ITAT, Ahemadabad in the case of DCIT vs. M/S Gujarat Microwax Pvt. Ltd. 2018-TII-160-ITAT-AHM-Intl. dated…

Granite Services International India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 740/DEL/2017[2012-13]Status: DisposedITAT Delhi19 Jun 2018AY 2012-13

Bench: Sh. R. K. Panda & Sh. Sudhanshu Srivastavaassessment Year: 2012-13 M/S. Granite Services Dcit International India Private Vs Circle-10(2), Limited, Building No.7A, New Delhi 5Th Floor, Dlf Cyber City, Phase-Iii, Sector -25A, Gurgaon-122002 Pan Aaccg3374Q (Appellant) (Respondent)

Section 143Section 144CSection 92Section 92C

…urts. (1) Van Oord ACZ India (P) Ltd. vs. CIT [2010] 323 ITR 130 (Delhi HC) (2) ITO vs. Prasad Production Ltd. [2010] 129 TTJ 641 (Chennai ITAT) (3) DCIT vs. Dhaanya Seeds (P) Ltd. [2013] 64 SOT 15 (Bangalore ITAT) (4) CIT vs. EON Technology (P.) Ltd. [2011] 343 ITR 366 (Delhi HC) (5) DIT vs. Ericsson Communications Ltd. [2015] 61 taxmann.com 117 (Delhi HC) (6) CIT vs. Divi's Laboratories Ltd. [2011] 12 taxmann.com 103 (Hyderabad ITAT) 31. He submitted that the travel and conveyance expenses/payments were in nature of reimbursement of expenses, made on cost to cost basis without there being any element of incom…

Commissioner of Income Tax vs. Maruti Suzuki India Ltd

ITA/519/2010HC Delhi07 Dec 2017

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 195Section 40

…on such payments under section 195 (1) of the Act and, therefore, the AO was not right in disallowing such payment as deduction by invoking Section 40 (a) (i) of the Act. 9. The Assessee relies on the decisions in CIT v. EON Technology (P.) Ltd. [2012] 343 ITR 366 (Del); CIT v. Model Exims Kanpur [2013] 358 ITR 72 (All) and CIT v. Gujarat Reclaim & Rubber Products Ltd. [2016] 383 ITR 236 (Bom) and on the CBDT Circular No.786 dated 7th February 2000 which clarifies that where the non-resident agent operates outside the country, no part of his income arises in India. It is further contended that since t…

ITO 28(2)(3), Navi Mumbai vs. Natraj Mohan Kanchan, Navi Mumbai

Appeal stands dismissed

ITA 824/MUM/2015[2011-12]Status: DisposedITAT Mumbai08 Nov 2017AY 2011-12

Bench: Shri Mahavir Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No. 824/Mum/2015 (िनधा"रण वष" / Assessment Year: 2011-12) Income Tax Officer 28(2)(3) Natraj Mohan Kanchan 3Rd Floor, Tower No.6 (Prop. M/S Snk Trading & Exports) बनाम/ 336, Grohitam Building Vashi Railway Station Complex Vs. Plot No.14B, Sec-19 Vashi Vashi, Navi Mumbai – 400 703 Mumbai – 400 703 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Afjpk-4775-N (अपीलाथ" /Appellant) (""थ" / Respondent) :

For Appellant: Subodh L.Ratnaparkhi,Ld.ARFor Respondent: Suman Kumar, Ld.DR
Section 143(3)Section 195Section 40

…explained. The Hon. Supreme Court held that, if payment is made in respect of the amount which is not chargeable to tax under the provisions of Act, TDS is not liable to be deducted. 3.9 the Hon. Delhi High Court in the case of CIT –vs- EON Technology (P) Ltd.343 ITR 366 (Delhi) (2012) following the decision in the case of GE India Technology Centre (P) Ltd. (SC) held that payment of sate commission to a non-resident agent operating outside India would not attract liability to deduct tax at source u/s 195 and disallowance u/a 40(a)(i) was not called for. 4 Natraj Mohan Kanchan Assessment Year 2011-12 3.10 Simila…

Ambica Steels Ltd., Delhi vs. Addl. CIT, New Delhi

In the result the appeal is allowed

ITA 3893/DEL/2014[2010-11]Status: DisposedITAT Delhi03 Oct 2017AY 2010-11

Bench: Shri Amit Shukla & Shri O.P. Kantin Ita No. 3893/Del/2014 Assessment Year: 2010-11 Ambica Steels Ltd. Vs. Addl. Cit C-54/1, Wazirpur Industrial Range -1, Area, Delhi New Delhi (Applicant) (Respondent) (Pan: Aaaca9942Q) Assessee By: Shri S.K. Jain, Ca Shri Nitin Jain, Ca Revenue By: Shri R.C. Danday, Sr. Dr Date Of Hearing 13/09/2017 Date Of Pronouncement 03/10/2017

For Appellant: Shri S.K. Jain, CAFor Respondent: Shri R.C. Danday, Sr. DR
Section 143(3)Section 260ASection 40Section 9

…fees for technical Page 8 of 9 services under section 9(1)(vii) for which there is entirely different concept. The Tribunal on the contrary has followed the subsequent decision of Hon'ble Delhi High Court in the case of CIT vs. Eon Technology P. Ltd. (2012) 343 ITR 366 (Delhi), wherein Hon'ble High Court has deleted the similar disallowance of payment of sales commission to a non-resident operating outside India on the ground that the same cannot be treated as payment received or accrued in India by a non-resident. Apart from that, in assessee’s own case in the A.Y. 2008-09, Hon'ble High Court has dismissed the…