CIT v. Model Exims

33 Taxmann.com 501High Court2013#7160 most cited

What is CIT v. Model Exims authority for?

If an assessee has sufficient interest-free funds, any investments or advances made are presumed to be out of those funds, preventing disallowance of related interest expenses.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2025.

Also referred to as

CIT v. Model Exims · CIT v. Model Exims citation 363 ITR 66 · interest free funds · disallowance of interest · HDFC Bank Limited v. DCIT · investment out of own funds · section 37(1)

Also reported as

363 ITR 66

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 CIT v. Model Exims

Income Tax Officer, Delhi vs. Mahak Industries Private Limited, Delhi

In the result the cross objection of the assessee is allowed

ITA 661/DEL/2024[2015-16]Status: DisposedITAT Delhi09 Jul 2025AY 2015-16

Bench: MS. MADHUMITA ROY (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

Section 142(1)Section 143(3)Section 14ASection 250Section 36(1)(iii)

…ee has sufficient interest free funds, it could be presumed that investments/advances was made out of interest free funds available with the assessee. This view is also expressed by the Hon’ble Bombay High Court in the case of HDFC Bank Limited v. DCIT (2016) 363 ITR 66 (Bom). In the instant case, assessee has successfully demonstrated that it had interest free funds of Rs.3.15 Cr. and the interest free advances made were of Rs.2.23 crores, thus, by following the aforesaid judgment of Hon’ble Supreme Court and Hon’ble Bombay High Court, no disallowance could be made. In view of this discussion the disallowance ma…

Deputy Commissioner of Income Tax, Circle -1(1)(1), Bengaluru vs. Algonomy Software Private Limited, Bengaluru

In the result, the appeals filed by the Revenue for AY 2016-17 to 2018-

ITA 1229/BANG/2024[2018-19]Status: DisposedITAT Bangalore15 Oct 2024AY 2018-19

Bench: Shri George George K. & Ms. Padmavathy S.

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri R.N. Siddappaji, CIT-DR
Section 133ASection 14Section 195Section 37Section 40Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE “A” BENCH, BANGALORE Before Shri George George K., Vice President and Ms. Padmavathy S., Accountant Member ITA Nos. 1196, 1226 & 1229/Bang/2024 (Assessment Years: 2016-17 to 2018-19) DCIT, Circle - 1(1)(1) Algonomy Software Pvt. Ltd. Room No. 215, 2nd Floor 40/4 Lavelle Road BMTC Building, 6th Block vs. Bangalore Bazaar Koramangala Bangalore 560001 Bangalore 560095 PAN – AADCM7750M (Appellant) (Respondent) Assessee by: Shri Narendra Kumar Jain, Advocate Revenue by: Shri R.N. Siddappaji, CIT-DR Date of hearing: 14.10.2024 Date of pronouncement: 15.10.2024 O R D E…

Deputy Commissioner of Income Tax, Circle - 1(1)(1), Bengaluru vs. Algonomy Software Private Limited, Bengaluru

In the result, the appeals filed by the Revenue for AY 2016-17 to 2018-

ITA 1226/BANG/2024[2017-18]Status: DisposedITAT Bangalore15 Oct 2024AY 2017-18

Bench: Shri George George K. & Ms. Padmavathy S.

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri R.N. Siddappaji, CIT-DR
Section 133ASection 14Section 195Section 37Section 40Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE “A” BENCH, BANGALORE Before Shri George George K., Vice President and Ms. Padmavathy S., Accountant Member ITA Nos. 1196, 1226 & 1229/Bang/2024 (Assessment Years: 2016-17 to 2018-19) DCIT, Circle - 1(1)(1) Algonomy Software Pvt. Ltd. Room No. 215, 2nd Floor 40/4 Lavelle Road BMTC Building, 6th Block vs. Bangalore Bazaar Koramangala Bangalore 560001 Bangalore 560095 PAN – AADCM7750M (Appellant) (Respondent) Assessee by: Shri Narendra Kumar Jain, Advocate Revenue by: Shri R.N. Siddappaji, CIT-DR Date of hearing: 14.10.2024 Date of pronouncement: 15.10.2024 O R D E…

Deputy Commissioner of Income Tax-Circle-1(1)(1), Bangalore., Bengaluru vs. Algonomy Software Private Limited, Bengaluru

In the result, the appeals filed by the Revenue for AY 2016-17 to 2018-

ITA 1196/BANG/2024[2016-17]Status: DisposedITAT Bangalore15 Oct 2024AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy S.

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri R.N. Siddappaji, CIT-DR
Section 133ASection 14Section 195Section 37Section 40Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE “A” BENCH, BANGALORE Before Shri George George K., Vice President and Ms. Padmavathy S., Accountant Member ITA Nos. 1196, 1226 & 1229/Bang/2024 (Assessment Years: 2016-17 to 2018-19) DCIT, Circle - 1(1)(1) Algonomy Software Pvt. Ltd. Room No. 215, 2nd Floor 40/4 Lavelle Road BMTC Building, 6th Block vs. Bangalore Bazaar Koramangala Bangalore 560001 Bangalore 560095 PAN – AADCM7750M (Appellant) (Respondent) Assessee by: Shri Narendra Kumar Jain, Advocate Revenue by: Shri R.N. Siddappaji, CIT-DR Date of hearing: 14.10.2024 Date of pronouncement: 15.10.2024 O R D E…

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

In the result, both the appeals of the assessee are partly allowed

ITA 833/BANG/2024[2014-15]Status: DisposedITAT Bangalore10 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

…IT(IT)A Nos.832 & 833/Bang/2024 Steer America Inc., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER IT(IT)A Nos.832 & 833/Bang/2024 Assessment Years: 2013-14 & 2014-15 Steer America Inc., No.1525, Corporate Woods Pkwy Suite 500, Uniontown, OH44685 USA foreign, United States 999999 Indian Address: DCIT (International Taxation) Steer Engineering Private Limited Circle-1(2) Vs. No.290, 4th Main, 4th Phase, Bangalore Peenya Industrial area Bangalore 560 058. Karnataka PAN NO : ABGCS3283H APPELLANT…

M/S. Steer America Inc., United States vs. The Deputy Commissioner of Income Tax, International Taxation Circle -1(2), Bengaluru

In the result, both the appeals of the assessee are partly allowed

ITA 832/BANG/2024[2013-14]Status: DisposedITAT Bangalore10 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri Vasanth Kumar, A.RFor Respondent: Ms. Anjala Sahu, D.R
Section 144CSection 147Section 148

…IT(IT)A Nos.832 & 833/Bang/2024 Steer America Inc., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER IT(IT)A Nos.832 & 833/Bang/2024 Assessment Years: 2013-14 & 2014-15 Steer America Inc., No.1525, Corporate Woods Pkwy Suite 500, Uniontown, OH44685 USA foreign, United States 999999 Indian Address: DCIT (International Taxation) Steer Engineering Private Limited Circle-1(2) Vs. No.290, 4th Main, 4th Phase, Bangalore Peenya Industrial area Bangalore 560 058. Karnataka PAN NO : ABGCS3283H APPELLANT…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 946/BANG/2023[2015-16]Status: DisposedITAT Bangalore19 Jan 2024AY 2015-16

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA Nos. 943 to 946/Bang/2023 Assessment Years : 2012-13 to 2015-16 M/s. Algonomy Software Pvt. Ltd. (formerly known as The Deputy Manthan Software Commissioner of Services Pvt. Ltd.), Income Tax, No. 40/4, First Floor, Circle – 1(1)(1), Lavelle Road, Vs. Bangalore. Bangalore. Karnataka – 560 001 PAN: AADCM7750M APPELLANT RESPONDENT & C.O. Nos. 14 to 17/Bang/2023 (in ITA Nos. 943 to 946/Bang/2023) (By Assessee) : Shri Narendra Kumar Jain, Assessee by Advocate Revenue…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 945/BANG/2023[2014-15]Status: DisposedITAT Bangalore19 Jan 2024AY 2014-15

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA Nos. 943 to 946/Bang/2023 Assessment Years : 2012-13 to 2015-16 M/s. Algonomy Software Pvt. Ltd. (formerly known as The Deputy Manthan Software Commissioner of Services Pvt. Ltd.), Income Tax, No. 40/4, First Floor, Circle – 1(1)(1), Lavelle Road, Vs. Bangalore. Bangalore. Karnataka – 560 001 PAN: AADCM7750M APPELLANT RESPONDENT & C.O. Nos. 14 to 17/Bang/2023 (in ITA Nos. 943 to 946/Bang/2023) (By Assessee) : Shri Narendra Kumar Jain, Assessee by Advocate Revenue…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 944/BANG/2023[2013-14]Status: DisposedITAT Bangalore19 Jan 2024AY 2013-14

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA Nos. 943 to 946/Bang/2023 Assessment Years : 2012-13 to 2015-16 M/s. Algonomy Software Pvt. Ltd. (formerly known as The Deputy Manthan Software Commissioner of Services Pvt. Ltd.), Income Tax, No. 40/4, First Floor, Circle – 1(1)(1), Lavelle Road, Vs. Bangalore. Bangalore. Karnataka – 560 001 PAN: AADCM7750M APPELLANT RESPONDENT & C.O. Nos. 14 to 17/Bang/2023 (in ITA Nos. 943 to 946/Bang/2023) (By Assessee) : Shri Narendra Kumar Jain, Assessee by Advocate Revenue…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

ITA 943/BANG/2023[2012-13]Status: DisposedITAT Bangalore19 Jan 2024AY 2012-13

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Appellant: Shri Narendra Kumar JainFor Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA Nos. 943 to 946/Bang/2023 Assessment Years : 2012-13 to 2015-16 The Deputy Commissioner of Income Tax, Circle - 1(1)(1), Bangalore. APPELLANT M/s. Algonomy Software Pvt. Ltd. (formerly known as Manthan Software Services Pvt. Ltd.), No. 40/4, First Floor, Lavelle Road, Vs. Bangalore. Karnataka – 560 001 PAN: AADCM7750M RESPONDENT & C.O. Nos. 14 to 17/Bang/2023 (in ITA Nos. 943 to 946/Bang/2023) (By Assessee) Assessee by : Shri Narendra Kumar Jain, Advocate Revenue…

M/S. Prime Oceanic Pvt. Ltd. Gandhi Nagar, Upla Sonava, Scheme No.8, Alwar vs. ITO Ward-2(3), Alwar

In the result, the disallowance so made is directed to be deleted and the ground of appeal is allowed

ITA 652/JPR/2019[2013-14]Status: DisposedITAT Jaipur14 Jun 2021AY 2013-14
For Appellant: Shri Manish Agarwal (CA)For Respondent: Smt Monisha Choudhary (JCIT)
Section 195Section 40

…2019) • DCIT vs Shamrock Pharmachemi Pvt. Ltd (ITA No. 862 & 863/Mum/2018) • DCIT (International Taxation), Ahmedabad vs. Welspun Corporation Ltd. (2017) 77 taxmann.com 16. • CIT vs Kikani Exports Pvt. Ltd. (2014) 369 ITR 96 (Mad) • CIT vs. Model Exims (2014) 363 ITR 66 (All.) • CIT vs. EON Technology P. Ltd. 343 ITR 366 (Del.) It is thus submitted that sum paid by assessee does not fall under any of the category mentioned above, and therefore is not taxable under 9(1)(vii). It is therefore submitted that there was no liability to deduct tax at source u/s 195 of the Income Tax Act. Now coming to Ld. CIT(A) obse…

Sterling Ornaments Pvt. Ltd., New Delhi vs. ACIT, Circle- 24(2), New Delhi

In the result, the Appeal filed by the Revenue stands dismissed

ITA 6622/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Nov 2020AY 2016-17

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi(Through Video Conference) A.Y. : 2016-17

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

…d, consequently, section 195 did not come into play. Therefore, the disallowance made by the AO towards export commission paid by the assessee to the non-resident was rightly deleted. iii) Hon’ble Allahabad High Court in the case of CIT vs. Model Exims (2014) 363 ITR 66 (All.) has observed (Heads Notes) that Business Expenditure – Disallowance – Payments to non-resident – Failure to deduct tax at source – Assessee’s agents had their own offices in foreign country – Agreement for procuring orders not involving any managerial services – Explanation to Section (2) not applicable – No disallowance of commission payme…

ACIT -25(2), Mumbai vs. M/S. Gepach International, Mumbai

In the result both the appeals filed by the revenue are dismissed

ITA 5943/MUM/2018[2013-14]Status: DisposedITAT Mumbai15 Sept 2020AY 2013-14

Bench: Shri Pawan Singh, Jm & Shris. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 5943 & 5942/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14 & 2014-15)

For Appellant: Ms. Samatha, DR byFor Respondent: Shri Vijay Mehta, AR
Section 143(2)Section 195Section 40Section 9

…at use of facility does not amount to technical services, as technical services denote services catering to the special needs of the person using them and not a facility provided to all. " > Hon 'ble Allahabad High Court in case of CIT . v. Model Exims (2014) 363 ITR 66 / 222 Taxman 94 / 267 CTR 177 (AIL)(HC) S. 195 : Deduction at source - Non-resident - Agreement for procuring only orders does not involve any managerial services - Explanation to section 9(2) not applicable. [S. "Assessee appointed foreign agents for securing orders. Commission paid to agents disallowed on the ground that it is in violation of pr…

Digi Drives Pvt. Ltd., Faridabad vs. ACIT, Circle- 1, Faridabad

ITA 9056/DEL/2019[2016-17]Status: DisposedITAT Delhi24 Aug 2020AY 2016-17

Bench: Shri Kuldip Singh

For Appellant: Shri Somil Agarwal, AdvocateFor Respondent: Shri Saras Kumar, Senior DR
Section 143Section 195Section 234BSection 40Section 9(1)(vii)

…ndustries Ltd. vs. CIT (supra), decision rendered by the coordinate Bench of the Tribunal in Adidas Sourcing Ltd. vs. ADIT (International Taxation) 150 TTJ 801 (Delhi), decision rendered by Hon’ble Allahabad High Court in case of CIT vs. Model Exims (2014) 363 ITR 66 (All) and decision rendered by Hon’ble Delhi High Court in case of DIT (International Taxation) vs. Panalfa Autolektrik Ltd. 49 taxmann.com 412 (Delhi) reached the conclusion that mere rendering of service of procurement of export orders by a non-resident company for the Indian company does not fall in the category of managerial/consultancy serv…

The Dy. CIT., Anand Circle, Anand vs. M/S. Kaira Dist. Co.-Op. Milk Producers Union Ltd., Anand

In the result, the appeal of the revenue is dismissed

ITA 2218/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad03 Oct 2019AY 2012-13

Bench: Shri Kul Bharat & Shri Waseem Ahmedआयकर अपील सं./Ita No.2218/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, M/S. Kaira District Co-Op. Milk, Anand Circle, Vs. Producers Union Ltd., Anand. Amul Dairy Road, Anand-388001. Pan: Aaaak8694F

For Appellant: Shri Yogesh Shah A.R
Section 143(3)Section 15Section 32(1)Section 36Section 80P(2)(d)

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’A’’ BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2218/AHD/2016 "नधा"रण वष"/Asstt. Year: 2012-2013 D.C.I.T, M/s. Kaira District Co-op. Milk, Anand Circle, Vs. Producers Union Ltd., Anand. Amul Dairy Road, Anand-388001. PAN: AAAAK8694F (Applicant) (Respondent) : Revenue by Shri O.P. Vaishnav, CIT.D.R Assessee by : Shri Yogesh Shah A.R सुनवाई क" तार"ख/Date of Hearing : 01/10/2019 घोषणा क" तार"ख /Date of Pronouncement: 03/10/2019 आदेश/O R D E R PER WASEEM AHMED ACCOU…

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

…e Coordinate Bench of ITAT in the case of DCIT (International Taxation), Ahmedabad vs. Welspun Corporation Ltd. (2017) 77 taxmann.com 165. ii) Decision of Hon’ble Jurisdictional High Court (Allahabad High Court) in the case of CIT vs. Model Exims (2014) 363 ITR 66 (All.) iii) Decision of the Hon’ble Supreme 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 i…

CIT v. Model Exims (33 Taxmann.com 501) — Cited in 16 Judgments | BharatTax