Director of Income Tax (International Taxation) v. Wizcraft International Entertainment Pvt. Ltd.

364 ITR 227High Court2014#10561 most cited

What is Director of Income Tax (International Taxation) v. Wizcraft International Entertainment Pvt. Ltd. authority for?

Tax is not required to be deducted at source under Section 195 from commission paid to a non-resident agent for services rendered outside India, especially when the agent has no participation in the event organized in India and the services do not fall under the definition of technical services.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2025.

Also referred to as

Wizcraft International Entertainment · section 195 · section 40(a)(i) · commission to non-resident · services rendered outside India · tax deduction at source · withholding tax · non-resident agent · international taxation · Bombay High Court

Sections most often in play

Section 145(3)Section 194CSection 195Section 28Section 37(1)Section 40(a)(i)

Issues it is cited on

section 195section 9(1)liable to taxnon-residentsection 19section 40section 37transferpersoncompanyindiabusiness

Judgments citing Director of Income Tax (International Taxation) v. Wizcraft International Entertainment Pvt. Ltd.

Instakart Services Private Limited, Bangalore vs. ACIT, Special Range-3, Bangalore

In the result appeal of the Revenue is hereby dismissed

ITA 544/BANG/2025[2017-18]Status: DisposedITAT Bangalore18 Dec 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ajay Vohra, Sr. Advocate and Ms. AnkitaFor Respondent: Shri Shivanad Kalakeri, CIT

…decision of the Hon’ble Supreme Court in DIT v. A.P. Moller Maersk A/S (2017) 78 taxmann.com 287 (SC), judgments of the Hon’ble Bombay High Court in CIT v. Siemens Aktiongesellschaft 310 ITR 320 (Bom) and DIT v. Wizcraft International Entertainment (P.) Ltd. 364 ITR 227 (Bom), and the Hon’ble Delhi High Court in Industrial Engineering Projects (P.) Ltd. ( 24 taxmann.com 76). On the basis of the above submissions, the learned assessee urged that the ESOP expenditure be allowed as a deductible business expense under section 37(1) of the Act and that no disallowance be made under section 40(a)(i) of the Act for non…

Sulzer Pumps India P. Ltd., Navi Mumbai vs. Addl./Jt/Dy/ Asstt/ ITO, National E-Assessment Centre, Delhi

In the result, appeal filed by the assessee is partly allowed as indicated above

ITA 810/MUM/2021[2016-17]Status: DisposedITAT Mumbai12 May 2023AY 2016-17

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Sulzer Pumps India Pvt Ltd V. Addl./Joint/Dy./Acit/Ito Plot No. 9, Midc, Digha National E-Assessment Centre Delhi Thane-Belapur Road, Navi Mumbai- 400708 Pan: Aaack2238F (Appellant) (Respondent) M/S. Sulzer Pumps India Pvt Ltd V. National Faceless Assessment Centre Delhi Plot No. 9, Midc, Digha Thane-Belapur Road Navi Mumbai- 400708 Pan: Aaack2238F (Appellant) (Respondent)

Section 144C(5)Section 37(1)Section 40

…at source. In the present case the associated enterprises do not carry on any business operation in India, they merely acted as selling agents of the assessee outside India. The issue is squarely covered by the decision of the honourable Bombay High Court in 364 ITR 227 in DIT v Wizcraft International entertainment private limited wherein it has been held that the non-resident agent did not perform any services in India but rendered services outside India and therefore the commission income to the agent is not liable to tax in India and therefore there was no obligation on part of the assessee to deduct tax at s…

Sulzer Pumps India Pvt Ltd., Mumbai vs. Dy CIT Circle-15 (3)(2), Mumbai

Accordingly, appeal of assessee is partly allowed

ITA 7318/MUM/2019[2015-16]Status: DisposedITAT Mumbai16 Sept 2022AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm The Dy. Commissioner Of Sulzer Pumps India Pvt Ltd. Income Tax, Circle 15(3)(2), Plot No.9, Midc, Digha, Room No. 451, Aayakar Thane- Belapur Road, Navi Vs. Bhavan, Maharshi Karve Mumbai-400 708 Road, Mumbai-400 020 (Respondent) (Appellant) Pan No. Aaack2238F Assessee By : Shri V. Shridharan & Ms. Manasi C, Ar Revenue By : Shri C T Mathew, Dr Date Of Hearing: 17.06.2022 Date Of Pronouncement : 16.09.2022

For Appellant: Shri V. Shridharan &For Respondent: Shri C T Mathew, DR
Section 143(3)Section 9(1)(vii)Section 92C

…facts and in law, in not appreciating the decision of Hon'ble Apex Court in the case of CIT V. Toshoku Ltd. Sulzes Pumps I Pvt. ltd.;AY 15-16 [1980] 125 ITR 525 (SC) and by the Bombay High Court in DIT v. Wizcraft International Entertainment Pvt. Ltd. [2004] 364 ITR 227 (Bom). 2. That on the facts and in the circumstances of the case, the lower authorities erred in upholding the disallowance of Rs. 1,70,99,895/- relating to the commission expenditure incurred by the assessee on the export sales. 2.1. The lower authorities erred in not appreciating the fact that the commission expenditure is not an ad hoc expen…

ACIT, Circle-4(1), Kolkata vs. M/S. Goodricke Group Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 895/KOL/2017[2008-09]Status: DisposedITAT Kolkata26 Apr 2019AY 2008-09

Bench: Shri Aby T Varkey , Jm &

Section 143(3)Section 40

…appellant also referred to a case which inter alia deals with the issue of deduction of tax at source on commission paid to non-resident agents in the case of Director of Income Tax (International Taxation) Vs. Wizcraft International Entertainment Pvt. Ltd. (364 ITR 227 - Bombay High Court). The fact involved in this case as far as it relates to payment of commission to non-resident agents was that a non- resident agent of artists in foreign countries was engaged by the resident assessee to bring foreign artists to perform in India, but the agent has no participation in the event organized in India. The agent wa…

DCIT, New Delhi vs. M/S Apco Worldwide India Pvt. Ltd., New Delhi

In the result appeal filed by revenue for A

ITA 205/DEL/2016[2010-11]Status: DisposedITAT Delhi03 Jan 2019AY 2010-11

Bench: Smt. Beena A Pillai & Dr. B.R.R. Kumara.Y. 2010-11

Section 142Section 143Section 195Section 40

…ement of expenses, that is, it is a cost sharing arrangement, it cannot be income chargeable to tax in the hands of recipient. Similar view was earlier taken by the Hon’ble Bombay High Court in DIT VS. Wizcraft International Entertainment P. Ltd. (Bom) (2014) 364 ITR 227 (Bom) holding that payment by way of reimbursement of expenses is not taxable in India. In view of the fact that the amount paid by the assessee to non-residents is not chargeable to tax in their hands and, as such, the provisions of section 195 of the Act are not attracted, there can be no question of applying section 40(a)(i) for making disallo…

ACIT (E), New Delhi vs. M/S Apco Worldwide India Pvt. Ltd., New Delhi

In the result appeal filed by revenue for A

ITA 1256/DEL/2016[2011-12]Status: DisposedITAT Delhi03 Jan 2019AY 2011-12

Bench: Smt. Beena A Pillai & Dr. B.R.R. Kumara.Y. 2010-11

Section 142Section 143Section 195Section 40

…ement of expenses, that is, it is a cost sharing arrangement, it cannot be income chargeable to tax in the hands of recipient. Similar view was earlier taken by the Hon’ble Bombay High Court in DIT VS. Wizcraft International Entertainment P. Ltd. (Bom) (2014) 364 ITR 227 (Bom) holding that payment by way of reimbursement of expenses is not taxable in India. In view of the fact that the amount paid by the assessee to non-residents is not chargeable to tax in their hands and, as such, the provisions of section 195 of the Act are not attracted, there can be no question of applying section 40(a)(i) for making disallo…

ACIT, Circle-4(1), Kolkata vs. M/S. Goodrick Group Ltd., Kolkata

ITA 2088/KOL/2016[2011-12]Status: DisposedITAT Kolkata17 Aug 2018AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 40

…appellant also referred to a case which inter alia deals with the issue of deduction of tax at source on commission paid to non-resident agents in the case of Director of Income Tax (International Taxation) Vs. Wizcraft International Entertainment Pvt. Ltd. (364 ITR 227 - Bombay High Court). The fact involved in this case as far as it relates to payment of commission to non-resident agents was that a non- resident agent of artists in foreign countries was engaged by the resident assessee to bring foreign artists to perform in India, but the agent has no participation in the event organized in India. The agent wa…

ACIT, Circle-4(1), Kolkata vs. M/S. Goodrick Group Ltd., Kolkata

ITA 2087/KOL/2016[2010-11]Status: DisposedITAT Kolkata17 Aug 2018AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 40

…appellant also referred to a case which inter alia deals with the issue of deduction of tax at source on commission paid to non-resident agents in the case of Director of Income Tax (International Taxation) Vs. Wizcraft International Entertainment Pvt. Ltd. (364 ITR 227 - Bombay High Court). The fact involved in this case as far as it relates to payment of commission to non-resident agents was that a non- resident agent of artists in foreign countries was engaged by the resident assessee to bring foreign artists to perform in India, but the agent has no participation in the event organized in India. The agent wa…

ACIT 32(1), Mumbai vs. Index, Mumbai

In the result, the appeal Revenue is dismissed

ITA 4934/MUM/2016[2012-13]Status: DisposedITAT Mumbai11 May 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am The Asst. Commissioner Of M/S Index Income Tax, 32(1), Mumbai Shri Chandraiah B Kalal, Prop. Of Cb & Sons, Plot Vs. No. 7 D1, Mandar Chs Ltd., Rsc 21, Gorai 1, Borivali West, Mumbai-400 092 Appellant .. Respondent Pan No. Aaafi3844E

For Appellant: NoneFor Respondent: Shri Virender singh, DR
Section 143(3)Section 195Section 40Section 9(1)(i)

…sessee preferred the appeal before CIT(A). The CIT(A) relying on the earlier years decision in assessee’s own case for AY 2010-11 and also on the decision of Hon’ble Bombay High Court in the case of DIT vs. Wizcraft International Entertainment Pvt. Ltd (2014) 364 ITR 227 (Bom.) deleted the disallowance by observing that the commission paid to non- resident agents outside India for procuring export orders for overseas 3 buyers, the income is not assessable in India chargeable to tax in India. Accordingly, following the decision of Hon’ble Supreme Court in the case of GE India Technology Cen. P Ltd. vs. CIT 327 IT…

Assistant Director of Income Tax, International Taxation, Mangalore vs. Jjm Medical College, Davangere

In the result, the departmental appeal is allowed for statistical purposes

ITA 1327/BANG/2014[2012-13]Status: DisposedITAT Bangalore28 Oct 2015AY 2012-13

Bench: Shri Abraham P George & Shri Vijay Pal Raoasst. Director Of Income-Tax (International Taxation, Mangalore. … Appellant Vs. J.J.M.Medical College, Stadium Road, M C C B Block, Davangere-577004 … Respondent Pan:Blrb00770A

For Appellant: Shri Sunil Kumar Agarwala, JCIT(DRFor Respondent: Shri P. Dinesh, Advocate
Section 1Section 195Section 2Section 201(1)Section 9Section 9(1)(vii)

…inization of Malaysian students for admission in the assessee’s medical college. He has relied upon the decision of the Hon’ble Bombay High Court in the case of Director of Income-tax(International Taxation) vs. Wizcraft International Entertainment Pvt. Ltd. (364 ITR 227) and submitted that when the nature of services rendered by the foreign company does not fall under the definition of technical services, then the payment made to the agent/foreign company cannot be treated as fee for technical services and creates any obligation on the part of the assessee to deduct tax u/s 195 of the Act. He has supported the o…

Director of Income Tax (International Taxation) v. Wizcraft International Entertainment Pvt. Ltd. (364 ITR 227) — Cited in 10 Judgments | BharatTax