CIT v. Toshoku Ltd.

125 ITR 525Supreme Court of India1980#295 most cited

What is CIT v. Toshoku Ltd. authority for?

A non-resident commission agent is not chargeable to tax in India on commission income if no business operations are carried out in India. Consequently, no TDS is required under Section 195 on such payments.

270

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. Toshoku Ltd. · Toshoku Ltd. · Section 9(1)(i) · Section 195 · Section 40(a)(i) · non-resident commission agent · sales commission taxable in India · business connection · TDS on non-residents · DTAA override · deemed to accrue or arise

Sections most often in play

Section 40(a)(i)Section 195Section 37(1)Section 143(3)Section 9(1)(i)Section 9(1)(vii)Section 115JBSection 1961

Issues it is cited on

section 5(2)(b)section 9(1)(i)section 195(1)section 195(2)section 5(2)business connectionsection 40(a)(i)permanent establishmentfees for included servicessection 195section 9(1)section 9(1)(vii)

Judgments citing CIT v. Toshoku Ltd.

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1166/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…1223/Kol/2017 Assessment Year: 2010-11 & 2011-12 ITC Limited. of services by such non-resident agents were provided outside India. The Ld. A.R in defense of his arguments relied on the decision of Hon’ble Apex Court in the case of CIT vs. Toshoku Ltd. [1980] 125 ITR 525 (SC) . The Ld. A.R submitted that no part of the commission paid by the assessee accrued or arose or was deemed to accrue or arise to non-resident in India and therefore the same was not chargeable to tax in India and as such there was no obligation on the part of the assessee to deduct tax at source u/s 195 of the Act. The Ld. A.R also contended…

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1068/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

…1223/Kol/2017 Assessment Year: 2010-11 & 2011-12 ITC Limited. of services by such non-resident agents were provided outside India. The Ld. A.R in defense of his arguments relied on the decision of Hon’ble Apex Court in the case of CIT vs. Toshoku Ltd. [1980] 125 ITR 525 (SC) . The Ld. A.R submitted that no part of the commission paid by the assessee accrued or arose or was deemed to accrue or arise to non-resident in India and therefore the same was not chargeable to tax in India and as such there was no obligation on the part of the assessee to deduct tax at source u/s 195 of the Act. The Ld. A.R also contended…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 455/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2017-18

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…tside India so as to take it outside the purview of section 40(a)(ia) of the Act. 10. During the course of hearing before us, the ld.counsel for the assessee drew our attention to the decision of Hon’ble Apex Court in the case of CIT Vs. Toshoku Lld., (1980) 125 ITR 525 (SC) wherein the Hon’ble Apex Court had settled the proposition of law with regard to the issue of chargeability to tax of commission paid to foreign agents ,in which situation they would be treated as not accrued or arising in India. Our attention was drawn to page no.7 of the order pointing therefrom that Hon’ble Apex Court had categorically he…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 454/AHD/2022[2014-15]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2014-15

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…tside India so as to take it outside the purview of section 40(a)(ia) of the Act. 10. During the course of hearing before us, the ld.counsel for the assessee drew our attention to the decision of Hon’ble Apex Court in the case of CIT Vs. Toshoku Lld., (1980) 125 ITR 525 (SC) wherein the Hon’ble Apex Court had settled the proposition of law with regard to the issue of chargeability to tax of commission paid to foreign agents ,in which situation they would be treated as not accrued or arising in India. Our attention was drawn to page no.7 of the order pointing therefrom that Hon’ble Apex Court had categorically he…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 453/AHD/2022[2013-14]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2013-14

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…tside India so as to take it outside the purview of section 40(a)(ia) of the Act. 10. During the course of hearing before us, the ld.counsel for the assessee drew our attention to the decision of Hon’ble Apex Court in the case of CIT Vs. Toshoku Lld., (1980) 125 ITR 525 (SC) wherein the Hon’ble Apex Court had settled the proposition of law with regard to the issue of chargeability to tax of commission paid to foreign agents ,in which situation they would be treated as not accrued or arising in India. Our attention was drawn to page no.7 of the order pointing therefrom that Hon’ble Apex Court had categorically he…

Globe Textiles (India) P. Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, all the appeals of the assessee are allowed

ITA 452/AHD/2022[2012-13]Status: DisposedITAT Ahmedabad24 Jan 2024AY 2012-13

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumar

For Respondent: Shri Sanjay Kumar, Sr.DR
Section 195Section 250(6)Section 40

…tside India so as to take it outside the purview of section 40(a)(ia) of the Act. 10. During the course of hearing before us, the ld.counsel for the assessee drew our attention to the decision of Hon’ble Apex Court in the case of CIT Vs. Toshoku Lld., (1980) 125 ITR 525 (SC) wherein the Hon’ble Apex Court had settled the proposition of law with regard to the issue of chargeability to tax of commission paid to foreign agents ,in which situation they would be treated as not accrued or arising in India. Our attention was drawn to page no.7 of the order pointing therefrom that Hon’ble Apex Court had categorically he…

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

…ices under section 9(1)(vii) of the I.T.Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were for his own benefit and use. ............... 11. The Hon'ble Supreme Court in the case of CIT v Toshoku Ltd (1980) 125 ITR 525 (SC) held that the sales commission paid to the commission agents outside India was not taxable in India. The Apex Court observed that the sales commission earned by the non-resident agents cannot be deemed to accrue or arise in India. 12. The Hon'ble Madras High Court in the case of CIT vs Faizan Shoes (P.) Ltd (2014) 48 taxmann.coni 48 (Madras)…

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

…ices under section 9(1)(vii) of the I.T.Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were for his own benefit and use. ............... 11. The Hon'ble Supreme Court in the case of CIT v Toshoku Ltd (1980) 125 ITR 525 (SC) held that the sales commission paid to the commission agents outside India was not taxable in India. The Apex Court observed that the sales commission earned by the non-resident agents cannot be deemed to accrue or arise in India. 12. The Hon'ble Madras High Court in the case of CIT vs Faizan Shoes (P.) Ltd (2014) 48 taxmann.coni 48 (Madras)…

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

…ices under section 9(1)(vii) of the I.T.Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were for his own benefit and use. ............... 11. The Hon'ble Supreme Court in the case of CIT v Toshoku Ltd (1980) 125 ITR 525 (SC) held that the sales commission paid to the commission agents outside India was not taxable in India. The Apex Court observed that the sales commission earned by the non-resident agents cannot be deemed to accrue or arise in India. 12. The Hon'ble Madras High Court in the case of CIT vs Faizan Shoes (P.) Ltd (2014) 48 taxmann.coni 48 (Madras)…

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

…r technical services under section 9(1)(vii) of the I.T.Act. The High Court held that the skill, business acumen and knowledge acquired by the non-resident were for his own benefit and use. 11. The Hon'ble Supreme Court in the case of CIT v Toshoku Ltd (1980) 125 ITR 525 (SC) held that the sales commission paid to the commission agents outside India was not taxable in India. The Apex Court observed that the sales commission earned by the non-resident agents cannot be deemed to accrue or arise in India. 12. The Hon'ble Madras High Court in the case of CIT vs Faizan Shoes (P.) Ltd (2014) 48 taxmann.coni 48 (Madras)…

Hindustan Epc Company Ltd., New Delhi vs. ACIT, Circle- 11(2), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 7112/DEL/2019[2016-17]Status: DisposedITAT Delhi20 Oct 2023AY 2016-17

Bench: Shri C. N. Prasad & Shri M. Balaganeshhindustan Epc Company Ltd, Vs. Acit, 239, Okhla Industrial Estate, Circle-11(2), Phase-Iii, New Delhi New Delhi (Appellant) (Respondent) Pan: Aafcm9606E Acit, Vs. Hindustan Epc Company Ltd, Circle-11(2), 239, Okhla Industrial Estate, New Delhi Phase-Iii, New Delhi (Appellant) (Respondent) Pan: Aafcm9606E

For Appellant: Sh. Satyen Sethi, AdvFor Respondent: Shri Vijay Vasanta, CIT DR
Section 143(3)Section 14A

…ce no tax was deductible by the assessee payer while making the payment to the commission agent. Reliance in this regard was placed on the following decisions by the assessee:- a) Decision of Hon‟ble Supreme Court in the case of CIT vs Toshuku Ltd reported in 125 ITR 525 (SC) and b) Decision of Hon‟ble Supreme Court in the case of GE India Technology Center (P) Ltd vs CIT reported in 327 ITR 456 (SC) 6.3. The ld. CIT(A) observed that Shye International Ltd is a resident of Hong Kong, Special Administrative Region. The commission is paid to them for procurement of solar modules from various Chinese companies. The…

ACIT, Circle- 11(2), New Delhi vs. Hindustan Epc Company Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 6985/DEL/2019[2016-17]Status: DisposedITAT Delhi20 Oct 2023AY 2016-17

Bench: Shri C. N. Prasad & Shri M. Balaganeshhindustan Epc Company Ltd, Vs. Acit, 239, Okhla Industrial Estate, Circle-11(2), Phase-Iii, New Delhi New Delhi (Appellant) (Respondent) Pan: Aafcm9606E Acit, Vs. Hindustan Epc Company Ltd, Circle-11(2), 239, Okhla Industrial Estate, New Delhi Phase-Iii, New Delhi (Appellant) (Respondent) Pan: Aafcm9606E

For Appellant: Sh. Satyen Sethi, AdvFor Respondent: Shri Vijay Vasanta, CIT DR
Section 143(3)Section 14A

…ce no tax was deductible by the assessee payer while making the payment to the commission agent. Reliance in this regard was placed on the following decisions by the assessee:- a) Decision of Hon‟ble Supreme Court in the case of CIT vs Toshuku Ltd reported in 125 ITR 525 (SC) and b) Decision of Hon‟ble Supreme Court in the case of GE India Technology Center (P) Ltd vs CIT reported in 327 ITR 456 (SC) 6.3. The ld. CIT(A) observed that Shye International Ltd is a resident of Hong Kong, Special Administrative Region. The commission is paid to them for procurement of solar modules from various Chinese companies. The…

Communications Global Network Services Limited, Bangalore vs. Deputy Commissioner of Income Tax (International Taxation), Circle-2(2), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 32/BANG/2021[2011-12]Status: DisposedITAT Bangalore29 Aug 2023AY 2011-12

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…As stated above, all services are rendered by the Assessee outside India. Accordingly, the income does not accrue or arise in India.  Reliance is placed on the decisions of the Hon’ble Supreme Court in the cases of CIT v. Toshoku Limited (reported in [1980] 125 ITR 525 (SC)) and the Hon’ble Madras High court in the case of CIT v. Anamallais Timber Trust Ltd. (reported in [1950] 18 ITR 333 (Mad. HC)), wherein it has been conclusively held that if services are provided outside India, no part of the income can be said to accrue or arises in India. Taxability under the DTAA Without prejudice, the provisions of the…

M/S Communications Global Network Services Limited, Bangalore vs. Deputy Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 89/BANG/2019[2009-10]Status: DisposedITAT Bangalore29 Aug 2023AY 2009-10

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…As stated above, all services are rendered by the Assessee outside India. Accordingly, the income does not accrue or arise in India.  Reliance is placed on the decisions of the Hon’ble Supreme Court in the cases of CIT v. Toshoku Limited (reported in [1980] 125 ITR 525 (SC)) and the Hon’ble Madras High court in the case of CIT v. Anamallais Timber Trust Ltd. (reported in [1950] 18 ITR 333 (Mad. HC)), wherein it has been conclusively held that if services are provided outside India, no part of the income can be said to accrue or arises in India. Taxability under the DTAA Without prejudice, the provisions of the…

M/S. Communications Global Network Services Limited, United Kingdom vs. Deputy Commissioner of Income Tax (International Taxation), Circle- 2(1), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 2218/BANG/2019[2010-11]Status: DisposedITAT Bangalore29 Aug 2023AY 2010-11

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…As stated above, all services are rendered by the Assessee outside India. Accordingly, the income does not accrue or arise in India.  Reliance is placed on the decisions of the Hon’ble Supreme Court in the cases of CIT v. Toshoku Limited (reported in [1980] 125 ITR 525 (SC)) and the Hon’ble Madras High court in the case of CIT v. Anamallais Timber Trust Ltd. (reported in [1950] 18 ITR 333 (Mad. HC)), wherein it has been conclusively held that if services are provided outside India, no part of the income can be said to accrue or arises in India. Taxability under the DTAA Without prejudice, the provisions of the…

DCIT, Chennai vs. Royal Sundaram Alliance Insurance Company Ltd., Chennai

In the result, appeals filed by the Revenue for all assessment years

ITA 1367/CHNY/2013[2009-2010]Status: DisposedITAT Chennai28 Jun 2023AY 2009-2010

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.1668 To 1670/Chny/2011 & िनधा"रण वष" /Assessment Year: 2006-07 To 2008-09 & 2009-10 The Dy. Commissioner- V. M/S.Royal Sundaram – Of Income Tax, Alliance Insurance Co. Ltd., Large Taxpayer Unit, 21, Patullos Road, Chennai. Chennai-600 002. [Pan: Aabcr 7106 G] (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Mr.M.Swaminathan, Sr.St. Counsel Assessee By : Mr.Sandeep Bagmar, Adv. सुनवाई की तारीख/Date Of Hearing : 19.06.2023 घोषणा की तारीख /Date Of Pronouncement : 28.06.2023

For Appellant: Mr.Sandeep Bagmar, AdvFor Respondent: Mr.M.Swaminathan
Section 14ASection 37Section 40

…been paid outside India to non-resident brokers or NRRI bank account. Further, payment to brokers in India would not tantamount to receipt in India, having regard to ratio of the judgment of the Hon'ble Supreme Court in the case of Toshoku Ltd. Vs. CIT (1980) 125 ITR 525 (SC), where it was held that amounts credited in favour of non-resident were not at the disposal or control of statutory agent and therefore, cannot be charged to tax on the basis of receipt of income, actual or constructive in the taxable countries. Further, even assuming for a moment, payment to resident brokers is treated as received in India,…

DCIT, Chennai vs. M/S. United India Insurance Co. Ltd., Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 1692/CHNY/2011[2007-08]Status: DisposedITAT Chennai28 Jun 2023AY 2007-08

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.1692/Chny/2011 िनधा"रण वष" /Assessment Year: 2007-08 The Dy. Commissioner- V. M/S.United India- Of Income Tax, Insurance Co. Ltd., Large Taxpayer Unit, 24, Whites Road, Chennai. Chennai-600 014. [Pan: Aaacu 5552 C] (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Mr.M.Swaminathan, Sr. Standing Counsel Assessee By : Mr.S.Sundararaman, Ca सुनवाई की तारीख/Date Of Hearing : 19.06.2023 घोषणा की तारीख /Date Of Pronouncement : 28.06.2023

For Appellant: Mr.S.Sundararaman, CAFor Respondent: Mr.M.Swaminathan
Section 14ASection 37Section 40Section 4A

…been paid outside India to non-resident brokers or NRRI bank account. Further, payment to brokers in India would not tantamount to receipt in India, having regard to ratio of the judgment of the Hon'ble Supreme Court in the case of Toshoku Ltd. Vs. CIT (1980) 125 ITR 525 (SC), where it was held that amounts credited in favour of non- resident were not at the disposal or control of statutory agent and therefore, cannot be charged to tax on the basis of receipt of income, actual or constructive in the taxable countries. Further, even assuming for a moment, payment to resident brokers is treated as received in India…

DCIT, Chennai vs. M/S. Royal Sundaram Alliance Insurance Co. Ltd., Chennai

In the result, appeals filed by the Revenue for all assessment years

ITA 1670/CHNY/2011[2008-09]Status: DisposedITAT Chennai28 Jun 2023AY 2008-09

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.1668 To 1670/Chny/2011 & िनधा"रण वष" /Assessment Year: 2006-07 To 2008-09 & 2009-10 The Dy. Commissioner- V. M/S.Royal Sundaram – Of Income Tax, Alliance Insurance Co. Ltd., Large Taxpayer Unit, 21, Patullos Road, Chennai. Chennai-600 002. [Pan: Aabcr 7106 G] (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Mr.M.Swaminathan, Sr.St. Counsel Assessee By : Mr.Sandeep Bagmar, Adv. सुनवाई की तारीख/Date Of Hearing : 19.06.2023 घोषणा की तारीख /Date Of Pronouncement : 28.06.2023

For Appellant: Mr.Sandeep Bagmar, AdvFor Respondent: Mr.M.Swaminathan
Section 14ASection 37Section 40

…been paid outside India to non-resident brokers or NRRI bank account. Further, payment to brokers in India would not tantamount to receipt in India, having regard to ratio of the judgment of the Hon'ble Supreme Court in the case of Toshoku Ltd. Vs. CIT (1980) 125 ITR 525 (SC), where it was held that amounts credited in favour of non-resident were not at the disposal or control of statutory agent and therefore, cannot be charged to tax on the basis of receipt of income, actual or constructive in the taxable countries. Further, even assuming for a moment, payment to resident brokers is treated as received in India,…

DCIT, Chennai vs. M/S. Royal Sundaram Alliance Insurance Co. Ltd., Chennai

In the result, appeals filed by the Revenue for all assessment years

ITA 1669/CHNY/2011[2007-08]Status: DisposedITAT Chennai28 Jun 2023AY 2007-08

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.1668 To 1670/Chny/2011 & िनधा"रण वष" /Assessment Year: 2006-07 To 2008-09 & 2009-10 The Dy. Commissioner- V. M/S.Royal Sundaram – Of Income Tax, Alliance Insurance Co. Ltd., Large Taxpayer Unit, 21, Patullos Road, Chennai. Chennai-600 002. [Pan: Aabcr 7106 G] (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Mr.M.Swaminathan, Sr.St. Counsel Assessee By : Mr.Sandeep Bagmar, Adv. सुनवाई की तारीख/Date Of Hearing : 19.06.2023 घोषणा की तारीख /Date Of Pronouncement : 28.06.2023

For Appellant: Mr.Sandeep Bagmar, AdvFor Respondent: Mr.M.Swaminathan
Section 14ASection 37Section 40

…been paid outside India to non-resident brokers or NRRI bank account. Further, payment to brokers in India would not tantamount to receipt in India, having regard to ratio of the judgment of the Hon'ble Supreme Court in the case of Toshoku Ltd. Vs. CIT (1980) 125 ITR 525 (SC), where it was held that amounts credited in favour of non-resident were not at the disposal or control of statutory agent and therefore, cannot be charged to tax on the basis of receipt of income, actual or constructive in the taxable countries. Further, even assuming for a moment, payment to resident brokers is treated as received in India,…

DCIT, Chennai vs. M/S. Royal Sundaram Alliance Insurance Co. Ltd., Chennai

In the result, appeals filed by the Revenue for all assessment years

ITA 1668/CHNY/2011[2006-07]Status: DisposedITAT Chennai28 Jun 2023AY 2006-07

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.1668 To 1670/Chny/2011 & िनधा"रण वष" /Assessment Year: 2006-07 To 2008-09 & 2009-10 The Dy. Commissioner- V. M/S.Royal Sundaram – Of Income Tax, Alliance Insurance Co. Ltd., Large Taxpayer Unit, 21, Patullos Road, Chennai. Chennai-600 002. [Pan: Aabcr 7106 G] (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Mr.M.Swaminathan, Sr.St. Counsel Assessee By : Mr.Sandeep Bagmar, Adv. सुनवाई की तारीख/Date Of Hearing : 19.06.2023 घोषणा की तारीख /Date Of Pronouncement : 28.06.2023

For Appellant: Mr.Sandeep Bagmar, AdvFor Respondent: Mr.M.Swaminathan
Section 14ASection 37Section 40

…been paid outside India to non-resident brokers or NRRI bank account. Further, payment to brokers in India would not tantamount to receipt in India, having regard to ratio of the judgment of the Hon'ble Supreme Court in the case of Toshoku Ltd. Vs. CIT (1980) 125 ITR 525 (SC), where it was held that amounts credited in favour of non-resident were not at the disposal or control of statutory agent and therefore, cannot be charged to tax on the basis of receipt of income, actual or constructive in the taxable countries. Further, even assuming for a moment, payment to resident brokers is treated as received in India,…