CIT v. Faizan Shoes (P.) Ltd.

367 ITR 155High Court2014#732 most cited

What is CIT v. Faizan Shoes (P.) Ltd. authority for?

Disallowance under section 40(a)(i) for non-deduction of tax at source on export agency commission paid to a non-resident does not apply if the non-resident's income is not taxable in India under section 9(1), such as when the agent operates outside India without a permanent establishment or business connection in India.

139

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 Indian tax judgments — from 2015 to 2026.

Also referred to as

Faizan Shoes · CIT v. Faizan Shoes · section 195 · section 40(a)(i) · export agency commission · non-resident payments · TDS non-resident · income deemed to accrue · business connection · permanent establishment · section 9(1) · no tax deduction

Also reported as

48 Taxmann.com 48226 Taxmann 115

Sections most often in play

Section 195Section 9(1)(vii)Section 40(a)(i)Section 40(a)(ia)Section 143(3)Section 32(1)(iia)Section 92CASection 37

Issues it is cited on

section 9(1)(i)section 195(1)section 9(1)(vii)management feessection 40(a)(i)fees for technical servicessection 195permanent establishmentsection 9(1)business connectionnon-residentchild

Judgments citing CIT v. Faizan Shoes (P.) Ltd.

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 882/CHNY/2017[2004-05]Status: DisposedITAT Chennai22 Dec 2021AY 2004-05

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 881/CHNY/2017[2003-04]Status: DisposedITAT Chennai22 Dec 2021AY 2003-04

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 880/CHNY/2017[2002-03]Status: DisposedITAT Chennai22 Dec 2021AY 2002-03

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 879/CHNY/2017[2001-02]Status: DisposedITAT Chennai22 Dec 2021AY 2001-02

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

Malladi Drugs and Pharmaceuticals Limited, Chennai vs. DCIT, Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1259/CHNY/2017[2012-13]Status: DisposedITAT Chennai22 Dec 2021AY 2012-13

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

Malladi Drugs and Pharmaceuticals Limited, Chennai vs. DCIT, Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1258/CHNY/2017[2011-12]Status: DisposedITAT Chennai22 Dec 2021AY 2011-12

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

Malladi Drugs and Pharmaceuticals Limited, Chennai vs. DCIT, Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1257/CHNY/2017[2010-11]Status: DisposedITAT Chennai22 Dec 2021AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1256/CHNY/2017[2012-13]Status: DisposedITAT Chennai22 Dec 2021AY 2012-13

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1255/CHNY/2017[2011-12]Status: DisposedITAT Chennai22 Dec 2021AY 2011-12

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

DCIT, Chennai vs. Malladi Drugs & Pharmaceuticals Ltd., Chennai

In the result, appeal filed by the Revenue in ITA Nos

ITA 1254/CHNY/2017[2010-11]Status: DisposedITAT Chennai22 Dec 2021AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathaआयकर अपील सं./Ita Nos: 879, 880, 881, 882, 1254, 1255 & 1256/Chny/2017 िनधा"रण वष" / Assessment Years: 2001-02, 2002-03, 2003-04, 2004-05, 2010-11, 2011-12 & 2012-13 Deputy Commissioner Of Income Malladi Drugs & Tax, V. Pharmaceuticals Limited, Corporate Circle -4(1), No. 9, G.S.T. Road, Chennai. St. Thomas Mount, Chennai – 600 016. [Pan:Aaacm 5031A] आयकर अपील सं./Ita Nos: 1257, 1258 & 1259/Chny/2017 िनधा"रण वष" / Assessment Years: 2010-11, 2011-12 & 2012-13 Malladi Drugs & Pharmaceuticals V. Deputy Commissioner Of Income Limited, Tax, No. 9, G.S.T. Road, Corporate Circle -4(1), St. Thomas Mount, Chennai. Chennai – 600 016. [Pan:Aaacm 5031A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. Vikram Vijayaraghavan, Advocate Assessee By : Shri. Ar.V. Sreenivasan, Addl. Cit Revenue By सुनवाई क" तार"ख/Date Of Hearing : 09.11.2021 घोषणा क" तार"ख/Date Of Pronouncement : 22.12.2021 आदेश /O R D E R Per G. Manjunatha:

For Appellant: Shri. AR.V. Sreenivasan, Addl. CIT
Section 28Section 37(1)

…ject to tax in India and thus, no requirement of deduction of tax at source on said payments. This legal position is clarified by the CBDT vide its Circular no. 23 of 786. Further, the Jurisdictional High Court of Madras in the case of CIT vs Faizan Shoes Ltd 367 ITR 155 (mad) had considered an identical issue and held that commission paid to non-resident agent will not fall within the definition of fees for technical services, when the non-resident agent was engaged by the assessee to procure export orders and paid commission for such services. The Hon’ble Supreme Court in the case of Transmission Corporation of…

M/S Deccan Creations Pvt Ltd, Bangalore vs. The Deputy Commissioner of Income Tax Circle-11(1), Bangalore

In the result, the appeal filed by the assessee for AY 2010-11

ITA 1212/BANG/2017[2012-13]Status: DisposedITAT Bangalore07 Dec 2021AY 2012-13

Bench: Shri N.V Vasudevan, Vice Presidnet & Shri B.R Baskaran

For Appellant: Smt. Jinitan Chaterjee, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl. CIT (DR)
Section 195(2)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN, VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER ITA No.1210 to 1212/Bang/2017 Assessment year : 2010-11 – 2012-13 M/s Deccan Creations Pvt. Ltd., Vs. The Dy. Commissioner of Income-tax , No.42, 5th Mile, Tumkur Road, Circle-11(1), Yeshwanthpur, Bengaluru. Bengaluru-560 022. PAN – AAACD 5156 F APPELLANT RESPONDENT Assessee by : Smt. Jinitan Chaterjee, Advocate Revenue by : Shri Priyadarshi Mishra, Addl. CIT (DR) Date of hearing : 02.11.2021 Date of Pronouncement : 07.12.2021 O R D E R Per B.R Baskaran, Accountant M…

M/S Deccan Creations Pvt Ltd, Bangalore vs. The Deputy Commissioner of Income Tax Circle-11(1), Bangalore

In the result, the appeal filed by the assessee for AY 2010-11

ITA 1211/BANG/2017[2011-12]Status: DisposedITAT Bangalore07 Dec 2021AY 2011-12

Bench: Shri N.V Vasudevan, Vice Presidnet & Shri B.R Baskaran

For Appellant: Smt. Jinitan Chaterjee, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl. CIT (DR)
Section 195(2)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN, VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER ITA No.1210 to 1212/Bang/2017 Assessment year : 2010-11 – 2012-13 M/s Deccan Creations Pvt. Ltd., Vs. The Dy. Commissioner of Income-tax , No.42, 5th Mile, Tumkur Road, Circle-11(1), Yeshwanthpur, Bengaluru. Bengaluru-560 022. PAN – AAACD 5156 F APPELLANT RESPONDENT Assessee by : Smt. Jinitan Chaterjee, Advocate Revenue by : Shri Priyadarshi Mishra, Addl. CIT (DR) Date of hearing : 02.11.2021 Date of Pronouncement : 07.12.2021 O R D E R Per B.R Baskaran, Accountant M…

M/S Deccan Creations Pvt Ltd, Bangalore vs. The Deputy Commissioner of Income Tax Circle-11(1), Bangalore

In the result, the appeal filed by the assessee for AY 2010-11

ITA 1210/BANG/2017[2010-11]Status: DisposedITAT Bangalore07 Dec 2021AY 2010-11

Bench: Shri N.V Vasudevan, Vice Presidnet & Shri B.R Baskaran

For Appellant: Smt. Jinitan Chaterjee, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl. CIT (DR)
Section 195(2)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN, VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER ITA No.1210 to 1212/Bang/2017 Assessment year : 2010-11 – 2012-13 M/s Deccan Creations Pvt. Ltd., Vs. The Dy. Commissioner of Income-tax , No.42, 5th Mile, Tumkur Road, Circle-11(1), Yeshwanthpur, Bengaluru. Bengaluru-560 022. PAN – AAACD 5156 F APPELLANT RESPONDENT Assessee by : Smt. Jinitan Chaterjee, Advocate Revenue by : Shri Priyadarshi Mishra, Addl. CIT (DR) Date of hearing : 02.11.2021 Date of Pronouncement : 07.12.2021 O R D E R Per B.R Baskaran, Accountant M…

Neuland Laboratories Limited, Hyderabad, Secunderabad vs. DCIT, Circle-16(1), Hyderabad

Appeal is allowed in above terms

ITA 823/HYD/2017[2012-13]Status: DisposedITAT Hyderabad12 Jul 2021AY 2012-13

Bench: Shri S.S. Godara & Shri L. P. Sahu(Through Virtual Hearing) Shri Neuland Laboratories Limited, Hyderabad. Pan Aaacn 9531E …..Appellant. Vs. Dy. Commissioner Of Income Tax, Circle 16(1), Hyderabad. …..Respondent. Appellant By : Shri Ch.Venkatesh For Shri M.V. Anil Kumar. Respondent By : Shri B. Balakrishna (D.R.) Date Of Hearing : 10.06.2021. Date Of Pronouncement : 12.07.2021. O R D E R Per Shri S.S. Godara, J.M. : This Assessee’S Appeal For Asst. Year 2012-13 Arises From The Pr. Commissioner Of Income Tax, Hyderabad’S Order Dt.27.03.2017 In Proceedings Under Section 263 Of Income Tax Act, 1961 (‘The Act’). Heard Both The Parties. Case File Perused. 2. We Notice At The Outset With The Able Assistance Of Two Parties That The Pcit Has Treated The Regular

For Appellant: Shri Ch.Venkatesh for Shri M.VFor Respondent: Shri B. Balakrishna (D.R.)
Section 263

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘ B ‘ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing) Shri Neuland Laboratories Limited, Hyderabad. PAN AAACN 9531E …..Appellant. Vs. Dy. Commissioner of Income Tax, Circle 16(1), Hyderabad. …..Respondent. Appellant By : Shri Ch.Venkatesh for Shri M.V. Anil Kumar. Respondent By : Shri B. Balakrishna (D.R.) Date of Hearing : 10.06.2021. Date of Pronouncement : 12.07.2021. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2012-13 arises from the Pr. Commissioner of…

Virupaksha Organics Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-17(2), Hyderabad

Appeal is allowed in above terms

ITA 1211/HYD/2018[2014-15]Status: DisposedITAT Hyderabad23 Jun 2021AY 2014-15

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri V.Siva Kumar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)Section 40

…of statutory provisions than estoppel only. Coupled with this, it has already come on record that the assessee’s payee(s) had not rendered any services in India since it has claimed foreign sales commission only. Case law CIT Vs. M/s.Faizan Shoes Pvt. Ltd., [367 ITR 155] and Welspun Corporation Ltd., Vs. DCIT ITA No.249/AHD/2015, Dt.03-01-2017 hold that such foreign sales commission expenses are not exigible to TDS deduction once the concerned recipients have not rendered any services in India. Hon'ble apex court’s landmark decision in GE India Technology Centre P. Ltd. v. CIT (2010) [327 ITR 456] also holds tha…

The DCIT, Circle-4, Ahmedabad vs. Ghcl Limited, Ahmedabad

ITA 976/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad05 Mar 2021AY 2009-10
For Appellant: Shri S. N. Soparkar, Sr. A.R. &For Respondent: Shri Mohd. Usman, CIR-D.R. &
Section 143(2)Section 144C(2)(b)Section 144C(5)Section 14ASection 37(1)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH (Conducted Through Virtual Court) Before: Shri Rajpal Yadav, Vice President And Shri Amarjit Singh, Accountant Member Sl. No. ITA No. Appellant Respondent A.Y. 1 976/Ahd/2014 Dy. CIT, Cir-4, GHCL Ltd.,Ahd 2009-10 Ahd 2 1042/Ahd/2014 GHCL Ltd., Dy. CIT, Cir-4, 2009-10 Ahd Ahd 3 302/Ahd/2015 DCIT, Cir- GHCL Ltd., 2010-11 2(1)(1), Ahd Ahd 4 82/Ahd/2015 GHCL Ltd., JCIT, Range-4, 2010-11 Ahd Ahd 5 2279/Ahd/2015 GHCL Ltd., DCIT, Cir- 2011-12 Ahd 2(1)(1), Ahd 6 2625/Ahd/2015 ACIT, Cir- GHCL Ltd., 2011-12 2(1)(1), Ahd Ahd 7 1120/Ahd/2017 ACIT, Cir- GHCL Ltd., 20…

Ghcl Limited, Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

ITA 1042/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad05 Mar 2021AY 2009-10
For Appellant: Shri S. N. Soparkar, Sr. A.R. &For Respondent: Shri Mohd. Usman, CIR-D.R. &
Section 143(2)Section 144C(2)(b)Section 144C(5)Section 14ASection 37(1)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH (Conducted Through Virtual Court) Before: Shri Rajpal Yadav, Vice President And Shri Amarjit Singh, Accountant Member Sl. No. ITA No. Appellant Respondent A.Y. 1 976/Ahd/2014 Dy. CIT, Cir-4, GHCL Ltd.,Ahd 2009-10 Ahd 2 1042/Ahd/2014 GHCL Ltd., Dy. CIT, Cir-4, 2009-10 Ahd Ahd 3 302/Ahd/2015 DCIT, Cir- GHCL Ltd., 2010-11 2(1)(1), Ahd Ahd 4 82/Ahd/2015 GHCL Ltd., JCIT, Range-4, 2010-11 Ahd Ahd 5 2279/Ahd/2015 GHCL Ltd., DCIT, Cir- 2011-12 Ahd 2(1)(1), Ahd 6 2625/Ahd/2015 ACIT, Cir- GHCL Ltd., 2011-12 2(1)(1), Ahd Ahd 7 1120/Ahd/2017 ACIT, Cir- GHCL Ltd., 20…

DCIT Corporate Circle 1(1), Chennai vs. Abi Showatech (India) Ltd., Chennai

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

ITA 1663/CHNY/2019[2009-10]Status: DisposedITAT Chennai04 Dec 2020AY 2009-10

Bench: Shri Duvvuru Rl Reddy & Shri G.Manjunathaआयकर अपील सं./I.T.A.No.1663/Chny/2019 ("नधा"रणवष" / Assessment Year: 2009-10) Deputy Commissioner Of Vs M/S. Abi Showatech (India) Ltd. Income Tax, Corporate Circle-I(1), 67, Chamiers Road, Chennai. Chennai-600 028. Pan:Aabca8160B (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. Saroj Kumar Parida
Section 10BSection 143(3)Section 195Section 40

…ned DR submitted that learned CIT(A) has erred in deleting the additions made towards disallowance of export commission paid to non-resident agents by relying upon the decision of the Hon’ble Madras High Court in the case of M/s. Faizan Shoes Pvt.Ltd (2014) 367 ITR 155 without appreciating the fact that in that case commission was paid to non-resident agent for procuring export orders from overseas buyers, whereas in the instant case, commission was paid to M/s.Biggleswade Ltd., Hong Kong, for various services including the services rendered in relation to promotion of sales, managing receivable accounts, giv…

DCIT 8(2)(1), Mumbai vs. Shamrock Pharmachemi P. Ltd., Mumbai

In the result, both appeals of the revenue are dismissed

ITA 862/MUM/2018[2013-14]Status: DisposedITAT Mumbai11 Nov 2020AY 2013-14

Bench: Shri Saktijit Dey & Shri M.Balaganeshita Nos. 862 & 863/Mum/2018 (Assessment Years :2013-14 & 2014-15) Dcit-8(2)(1) Vs. M/S. Shamrock Pharmachemi Room No.624, Pvt.Ltd. Aaykar Bhawan, M.K.Road Off Dr. E Moses Road Mumbai-400 020 Worli, Mumbai-400 025 Pan/Gir No.Aaacs6290H (Appellant) .. (Respondent) Assessee By Shri Bharat Gandhi, Ar Revenue By Shri V.Vinod Kumar, Sr.Ar Date Of Hearing 28/10/2020 Date Of Pronouncement 11/11/2020 आदेश / O R D E R Per M. Balaganesh (A.M): These Two Appeals Filed By Revenue In Ita Nos. 862 & 863/Mum/2018 For Assessment Years (Ay) 2013-14 & 2014-15 Arise Out Of The Order By The Ld. Commissioner Of Income Tax (Appeals)- 14, Mumbai In Appeals No.Cit(A)-14/It-170/15-16 & Cit(A)-14/It- 119/16-17, Dated 27/11/2017 (Ld. Cit(A) In Short) Against The Order Of Assessment Passed U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As Act) Dated 31/08/2016 By The Ld. Deputy Commissioner Of Income Tax-8(2)(1), Mumbai (Hereinafter Referred To As Ld. Ao).

Section 143(3)Section 195Section 195(1)Section 195(2)Section 40

…rvices rendered outside India; (b) the Tax Deduction at Source (TDS) is required to be made on all payments to non-residents, only if such payments are liable to be taxed in India. (c) following the decision of this Court, CIT v. Faizan Shoes (P.) Ltd. [2014] 367 ITR 155/226 Taxman 115/48 taxmann.com 48 (Mad.), the assessee is not liable to deduct tax at source, when the non-resident agent provides services outside India on payment of commission. 5.2 The contention of the Revenue is that such services are attracted by Explanation (2) to Section 9 (1) (vii) of the Act and therefore TDS certificate is essential. 6…

El Forge Limited, Chennai vs. DCIT Corporate Circle 2(1), Chennai

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

ITA 3018/CHNY/2018[2009-10]Status: DisposedITAT Chennai09 Nov 2020AY 2009-10

Bench: Shri Mahavir Singh, Vice- & Shri G.Manjunathaआयकरअपीलसं./I.T.A.No 3018/Chny/2018 ("नधा"रणवष" / Assessment Year: 2009-10) M/S. El Forge Limited, Vs The Deputy Commissioner Of 21E, A.R.K. Colony, Income Tax, Eldams Road, Alwarpet, Corporate Circle-2(1), Chennai-600 018. Chennai-600 034. Pan:Aaace 1706C (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Ms. R. Anitha, JCITFor Respondent: 09.11.2020
Section 143(3)Section 195Section 40

…was not in the nature of royalty and the same did not give rise to any income taxable in India and therefore, the assessee was not liable to deduct any tax at source. 6 The Jurisdictional High Court of Madras in the case of M/s. Faizan Shoes Pvt.Ltd (2014) 367 ITR 155 has considered an identical issue and held that export commission paid to non-resident agents for rendering services outside India is not liable to tax in India, if such non-resident agents do not have any permanent establishment or business connection in India and consequently withholding tax as per section 195 of the Act have no application…