GE India Technology Centre Pvt. Ltd. v. CIT

327 ITR 456Supreme Court of India2010#85 most cited

What is GE India Technology Centre Pvt. Ltd. v. CIT authority for?

Tax must be deducted at source from payments made to a non-resident under Section 195 only if such payment is chargeable to tax in India. The Assessing Officer bears the onus to establish that the payments made are indeed chargeable to tax under the Income Tax Act.

663

judgments rely on this decision, according to BharatTax’s citation analysis of 372,384 Indian tax judgments — from 2013 to 2026.

Also referred to as

GE India Technology Centre Pvt. Ltd. v. CIT · Section 195 · Section 40(a)(i) · TDS non-resident · withholding tax India · payment chargeable to tax · liability to deduct tax · income tax non-resident · tax deduction at source

Sections most often in play

Section 195Section 40(a)(i)Section 40(a)(ia)Section 143(3)Section 115JBSection 201(1A)Section 14ASection 201(1)
Read the full judgment

Issues it is cited on

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

Judgments citing GE India Technology Centre Pvt. Ltd. v. CIT

Bimetal Bearings Limited, Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee for the assessment year

ITA 668/CHNY/2015[2007-08]Status: DisposedITAT Chennai29 Aug 2019AY 2007-08

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 668, 669, 670 & 671/Chny/2015 िनधा"रण वष"/Assessment Years:2007-08 To 2010-11 M/S. Bimetal Bearings Limited, The Deputy Commissioner Of 18, Race Course Road, Vs. Income Tax, Large Taxpayer Unit, Coimbatore 641 018. 1775, Jawaharlal Nehru Inner Ring Road, Anna Nagar Western Extension, [Pan:Aaacb2036Q] Chennai 600 101. (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri R. Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 02.07.2019 घोषणा की तारीख /Date Of Pronouncement : 29.08.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: These Four Appeals Filed By The Same Assessee Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 17, Chennai All Dated 30.01.2015 Relevant To The Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11. Since Common Issues Have Been Raised In These Appeals, Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Brevity.

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT
Section 14ASection 40

…aid outside India in the instant case are not falling under either royalty, interest or fee for technical services, therefore they are not chargeable to tax in India. The decision of the Hon'ble Supreme Court in the case of G.E. India Technology Centre P Ltd, 327 ITR 456 (SC) (2010) comes to the rescue of the appellant. Furthermore, my Id. predecessor has allowed such claim in his order vide ITA No. 523/06-07/A. III dated 14.7.2010 in the case of another group concern I.P. Rings Ltd for A.Y. 99-2000 for similar payments made to Amalgamations P Ltd. In view of the above discussion, the disallowance u/s 40(a)(i) is…

The Dy. Commissioner of Income Tax, Circle-2(1)(1`), Ahmedabad vs. M/S. Gujarat Ambuja Exports Ltd., Ahmedabad

In the result, appeals of the Revenue and CO of the assessee; all are dismissed

ITA 2037/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad23 Aug 2019AY 2013-14

Bench: Shri Rajpal Yadav & Shri Pradipkumar Kedia

For Appellant: Shri S.K. Dev, Sr.DRFor Respondent: Shri Tushar P. Hemani, AR
Section 143(2)Section 80I

…ndia only then element of income would be involved, on such payments and tax would be required to be deducted. For harbouring this plea, the ld.CIT(A) made reference to the decision of Hon’ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd., 327 ITR 456. In this way, the ld.CIT(A) has deleted the disallowance in both the years. ITA No.2490/Ahd/2014 and 3 Others DCIT Vs. Gujarat Ambuja Exports Ltd. 19 16. With the assistance of the ld.representatives, we have gone through the record carefully. A perusal of the assessment order would indicate that the ld.AO has disallowed the claim of commission…

The DCIT, Circle- 2(1)(1), Ahmedabad vs. M/S. Gujarat Ambuja Exports Limited, Ahmedabad

In the result, appeals of the Revenue and CO of the assessee; all are dismissed

ITA 3233/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad23 Aug 2019AY 2012-13

Bench: Shri Rajpal Yadav & Shri Pradipkumar Kedia

For Appellant: Shri S.K. Dev, Sr.DRFor Respondent: Shri Tushar P. Hemani, AR
Section 143(2)Section 80I

…ndia only then element of income would be involved, on such payments and tax would be required to be deducted. For harbouring this plea, the ld.CIT(A) made reference to the decision of Hon’ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd., 327 ITR 456. In this way, the ld.CIT(A) has deleted the disallowance in both the years. ITA No.2490/Ahd/2014 and 3 Others DCIT Vs. Gujarat Ambuja Exports Ltd. 19 16. With the assistance of the ld.representatives, we have gone through the record carefully. A perusal of the assessment order would indicate that the ld.AO has disallowed the claim of commission…

The DCIT, Circle-4, Ahmedabad vs. M/S. Gujarat Ambuja Exports Limited, Ahmedabad

In the result, appeals of the Revenue and CO of the assessee; all are dismissed

ITA 2490/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad23 Aug 2019AY 2011-12

Bench: Shri Rajpal Yadav & Shri Pradipkumar Kedia

For Appellant: Shri S.K. Dev, Sr.DRFor Respondent: Shri Tushar P. Hemani, AR
Section 143(2)Section 80I

…ndia only then element of income would be involved, on such payments and tax would be required to be deducted. For harbouring this plea, the ld.CIT(A) made reference to the decision of Hon’ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd., 327 ITR 456. In this way, the ld.CIT(A) has deleted the disallowance in both the years. ITA No.2490/Ahd/2014 and 3 Others DCIT Vs. Gujarat Ambuja Exports Ltd. 19 16. With the assistance of the ld.representatives, we have gone through the record carefully. A perusal of the assessment order would indicate that the ld.AO has disallowed the claim of commission…

Vatika Ltd., New Delhi vs. DCIT, New Delhi

ITA 1512/DEL/2014[2008-09]Status: DisposedITAT Delhi14 Aug 2019AY 2008-09

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri C.S. Aggarwal, Sr. AdvFor Respondent: Smt Naina Soin Kapil, Sr. DR
Section 195Section 250Section 251(1)(a)Section 251(2)Section 271Section 40a

…ct on the amount paid/payable without including such service tax component. 4. This circular may be brought to the notice of all officer for compliance. ” vi. Further, the Hon'ble Supreme Court in the case of GE India Technology Centre (P.) Ltd. v. C/T [2010] 327 ITR 456 wherein the Hon'ble Apex Court has decided that there was no obligation for withholding tax on any person making payment to a non-resident, if the payment made to non- resident is not chargeable under the provisions of the I.T. Act. vii. It is further stated that there was no justification not to have allowed the deduction of the said sum of Rs.…

At & T Communication Services India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6322/DEL/2014[2009-10]Status: DisposedITAT Delhi14 Aug 2019AY 2009-10

Bench: Smt Beena A Pillai & Shri Prashant Maharishiat& T Communication Services Vs. Dcit, India Pvt Ltd, Circle-2(1), Vatika Triangle, 3Rd Floor, New Delhi Sushant Lok-1, Block-A, Gurgaon Pan: Aacca8033E (Appellant) (Respondent)

For Appellant: Shri K. M. Gupta, AdvFor Respondent: Shri Raman Chopra, CIT DR
Section 143Section 144CSection 153(1)Section 40

…PE certificate), such payments would also not be chargeable to tax in India as its business income and no tax is deductible under section 195 of the Act in terms of the decision of the Hon‟ble Supreme Court in the case of GE India Technology Centre Pvt. Ltd (327 ITR 456)(2010). iii. Further, as per the withholding tax provisions, the obligation to withhold taxes arises only when the amount is payable to an identified payee, i.e. credit of the said amount should be create a „right to receive / enforce payment of such income‟ in favor of the payee. However,since creation of the year-end accruals does not result i…

DCIT (International Taxation), New Delhi vs. M/S Tmw Aspf I Cyprus Holding Company Ltd., Gurgaon

In the result appeal of the revenue is dismissed and CO IS allowed

ITA 879/DEL/2016[2011-12]Status: DisposedITAT Delhi09 Aug 2019AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kantasstt. Year: 2011-12 Dcit (International M/S. Tmw Aspf I Cyprus Holding Taxation) Company Ltd., C/O Deloitee Circle 3 (1)(1), Hasking & Sells Llp, New Delhi. 7Th Floor, Bldg. 10, Tower-B, Dlf Vs. Cyber City Complex, Dlf City Phase – Ii, Gurgaon 122 002 Haryana Pan Aacct6680J (Appellant) (Respondent)

For Appellant: Shri Kanchan Koushal, AdvFor Respondent: Shri H.K. Choudhary, CIT ( DR )
Section 92(1)

…iple, the Appeal is dismissed." 12. The Ld. Counsel then proceeded to submit that the issue can also be examined from the angle of the TDS provisions. It was submitted that the Hon’ble Supreme Court in the case of GE Technology Centre (P.) Ltd. V. CIT [2010] 327 ITR 456 has held that when a credit afforded by, or a payment made by, an Indian resident, to a non-resident, does not trigger the taxability of that income in the hands of recipient, the tax deduction liability does not come into play at all. The tax at source is attracted at the very first instance when the income accrues to the payee. Accordingly, in…

The DCIT, Circle-1(1)(1), Ahmedabad vs. Amol Dicalite Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 601/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad07 Aug 2019AY 2013-14

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kedia

Section 195Section 40

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ ‘A’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 601/Ahd/2018 ("नधा"रण वष" / Assessment Year : 2013-14) Dy.CIT बनाम/ Amol Dicalite Ltd. Circle-1(1)(1), Ahmedabad 301, Akshay, 53, Shrimali Vs. Society, Navrangpura, Ahmedabad "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AABCA2807K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri S. K. Dev, Sr.D.R. अपीलाथ" ओर से /Appellant by : ""यथ" क" ओर से / Respondent None by : 07/08/2019 सुनवाई क" तार"ख /…

Income Tax Officer 2(1)(1), Mumbai vs. Aaa Technologies Private Limited, Mumbai

In the result the appeal filed by the revenue is dismissed

ITA 400/MUM/2018[2014-15]Status: DisposedITAT Mumbai29 Jul 2019AY 2014-15

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2014-15 Income Tax Officer- M/S Aaa Technologies 2(1)(1), Room No. 543, Pvt. Ltd. 5, Apeejay Vs. 5Th Floor, Aayakar House, Ground Floor, Bhavan, M.K. Road, 130, Bombay Samachar Mumbai-400020. Marg, Fort, Mumbai- 400023. Pan No. Aadca8858Q Appellant Respondent C.O. No. 144/Mum/2019 (Ita No. 400/Mum/2018) Assessment Year: 2014-15 M/S Aaa Technologies Income Tax Officer- Pvt. Ltd. 5, Apeejay 2(1)(1), Room No. 543, Vs. House, Ground Floor, 130, 5Th Floor, Aayakar Bombay Samachar Marg, Bhavan, M.K. Road, Fort, Mumbai-400023. Mumbai-400020. Pan Noaadca8858Q Appellant Respondent Revenue By : Mr. Maurya Pratap, Dr Assessee By : Mr. Shubham Rathi, Ar Date Of Hearing : 06/06/2019 Date Of Pronouncement : 29/07/2019

For Appellant: Mr. Shubham Rathi, ARFor Respondent: Mr. Maurya Pratap, DR
Section 10Section 143(3)Section 195Section 40

…also rule that if such explanation is considered as such under Income Tax Act then such expenditure do not require TDS to be done because it is not taxable in India. For such view carried by me, I rely on the judgment of GE India Technology P Ltd v CIT (2010) 327 ITR 456 (SC). As per Section 195 of the IT Act, TDS is only deductible where the income is chargeable to tax in India and payment is made to a non resident. In this case, no service is rendered, there is no income chargeable to tax in India and thus no TDS is deductible u/s 195 of the IT Act. In the light of the above facts and in the absence of any mate…

Tulasi Seeds Pvt. Ltd., Visakhapatnam vs. The ACIT, Guntur

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are partly allowed

ITA 6/VIZ/2016[2012-13]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2012-13

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) Asst. Commissioner Of Income Tax Vs. M/S Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A.No.139/Viz/2015 & I.T.A.No.06/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) M/S Tulasi Seeds Private Ltd. Asst. Commissioner Of D.No.6-4-6, Tulasi House Income Tax 4/5, Arundelpet Circle-2(1) Guntur Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Cit Dr निर्धाऩरती की ओर से / Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 28.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19 .07.2019

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri D.K.Sonowal, CIT DR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री िी. दुगाा राि,न्याधयक सदस्य एिं श्री धड.एस. सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 and 2012-13) Asst. Commissioner of Income Tax Vs. M/s Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [PAN :AAACT8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A…

The ACIT, Guntur vs. Tulasi Seeds Pvt, . Ltd., Guntur

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are partly allowed

ITA 55/VIZ/2016[2012-13]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2012-13

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) Asst. Commissioner Of Income Tax Vs. M/S Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A.No.139/Viz/2015 & I.T.A.No.06/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) M/S Tulasi Seeds Private Ltd. Asst. Commissioner Of D.No.6-4-6, Tulasi House Income Tax 4/5, Arundelpet Circle-2(1) Guntur Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Cit Dr निर्धाऩरती की ओर से / Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 28.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19 .07.2019

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri D.K.Sonowal, CIT DR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री िी. दुगाा राि,न्याधयक सदस्य एिं श्री धड.एस. सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 and 2012-13) Asst. Commissioner of Income Tax Vs. M/s Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [PAN :AAACT8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A…

The ACIT, Guntur vs. M/S Tulasi Seeds Pvt. Ltd., Guntur

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are partly allowed

ITA 167/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2011-12

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) Asst. Commissioner Of Income Tax Vs. M/S Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A.No.139/Viz/2015 & I.T.A.No.06/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) M/S Tulasi Seeds Private Ltd. Asst. Commissioner Of D.No.6-4-6, Tulasi House Income Tax 4/5, Arundelpet Circle-2(1) Guntur Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Cit Dr निर्धाऩरती की ओर से / Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 28.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19 .07.2019

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri D.K.Sonowal, CIT DR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री िी. दुगाा राि,न्याधयक सदस्य एिं श्री धड.एस. सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 and 2012-13) Asst. Commissioner of Income Tax Vs. M/s Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [PAN :AAACT8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A…

Tulasi Seeds Pvt., Ltd., Visakhapatnam vs. The ACIT, Guntur

In the result, the appeals of the revenue are dismissed and the appeals of the assessee are partly allowed

ITA 139/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam19 Jul 2019AY 2011-12

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) Asst. Commissioner Of Income Tax Vs. M/S Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A.No.139/Viz/2015 & I.T.A.No.06/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 & 2012-13) M/S Tulasi Seeds Private Ltd. Asst. Commissioner Of D.No.6-4-6, Tulasi House Income Tax 4/5, Arundelpet Circle-2(1) Guntur Guntur [Pan :Aaact8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व की ओर से /Revenue By : Shri D.K.Sonowal, Cit Dr निर्धाऩरती की ओर से / Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 28.06.2019 घोर्णध की तधरीख/Date Of Pronouncement : 19 .07.2019

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri D.K.Sonowal, CIT DR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री िी. दुगाा राि,न्याधयक सदस्य एिं श्री धड.एस. सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.167/Viz/2015 & I.T.A.No.55/Viz/2016 (निर्धारण वर्ा/Assessment Year : 2011-12 and 2012-13) Asst. Commissioner of Income Tax Vs. M/s Tulasi Seeds Private Ltd. Circle-2(1) D.No.6-4-6, Tulasi House Guntur 4/5, Arundelpet Guntur [PAN :AAACT8054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./ I.T.A…

Dy. Commissioner of Income Tax, Circle.1(1)(1)., Ahmedabad vs. M/S.Burt Hill Design Pvt. Ltd.(Now Stantec Consulting Pvt. Ltd.), Ahmedabad

In the result, the appeal of the Assessing Officer is dismissed

ITA 2104/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad11 Jul 2019AY 2010-11
Section 143(3)Section 192Section 195Section 40

…aries”)” When income embedded in a payment is not taxable under the Income Tax Act, 1961, the tax withholding liability does not get triggered at all. This is what Hon’ble Supreme Court has also held in the case of G E Technology Centre Pvt Ltd Vs CIT [(2010) 327 ITR 456(SC)]. While holding so, Their Lordships have, inter alia, observed as follows: ……….The said expression in Section 195(1) shows that the remittance has got to be of a trading receipt, the whole or part of which is liable to tax in India. The payer is bound to deduct tax at ITA Nos. 1954 & 2104/Ahd/2015 DCIT Vs. Burt Hill Design P Ltd & vice versa…

Burt Hill Design Pvt. Ltd. ( Now Known As Stantec Consulting Pvt. Ltd. ), Ahmedabad vs. The Dy.CIT, Circle-1, Ahmedabad

In the result, the appeal of the Assessing Officer is dismissed

ITA 1954/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad11 Jul 2019AY 2010-11
Section 143(3)Section 192Section 195Section 40

…aries”)” When income embedded in a payment is not taxable under the Income Tax Act, 1961, the tax withholding liability does not get triggered at all. This is what Hon’ble Supreme Court has also held in the case of G E Technology Centre Pvt Ltd Vs CIT [(2010) 327 ITR 456(SC)]. While holding so, Their Lordships have, inter alia, observed as follows: ……….The said expression in Section 195(1) shows that the remittance has got to be of a trading receipt, the whole or part of which is liable to tax in India. The payer is bound to deduct tax at ITA Nos. 1954 & 2104/Ahd/2015 DCIT Vs. Burt Hill Design P Ltd & vice versa…

ACIT 11(3)(1), Mumbai vs. Total Oil India P.Ltd, Mumbai

ITA 4300/MUM/2016[2010-11]Status: DisposedITAT Mumbai09 Jul 2019AY 2010-11

Bench: Shri G. S. Pannu, Vp & Shri Amarjit Singh, Jm

For Appellant: Shri Niraj ShethFor Respondent: Shri S. Usmani (DR)
Section 143(1)Section 143(2)Section 195Section 40Section 9(1)(vi)Section 9(1)(vii)

…nce it does not have any element of income. Accordingly, it is not liable to tax in India. Once, the amount is not liable to tax in India, there is no liability on the appellant to deduct taxes u/s 195 as held by Supreme Court in GE Technology Centre vs CIT 1(327 ITR 456) (SC)] and Transmission Corporation (supra). On the other hand, the AO has held the amount to be in the nature of FTS and hence liable to tax in India u/s 9(I) (vii) of the Act mandating deduction of tax from this amount u/s 195. The first issue which arises for determination is whether the amount can be treated as pure re-imbursement or FTS. 8.2…

Total Oil India P.Ltd, Mumbai vs. Addl CIT RG 8(3), Mumbai

ITA 4135/MUM/2016[2010-11]Status: DisposedITAT Mumbai09 Jul 2019AY 2010-11

Bench: Shri G. S. Pannu, Vp & Shri Amarjit Singh, Jm

For Appellant: Shri Niraj ShethFor Respondent: Shri S. Usmani (DR)
Section 143(1)Section 143(2)Section 195Section 40Section 9(1)(vi)Section 9(1)(vii)

…nce it does not have any element of income. Accordingly, it is not liable to tax in India. Once, the amount is not liable to tax in India, there is no liability on the appellant to deduct taxes u/s 195 as held by Supreme Court in GE Technology Centre vs CIT 1(327 ITR 456) (SC)] and Transmission Corporation (supra). On the other hand, the AO has held the amount to be in the nature of FTS and hence liable to tax in India u/s 9(I) (vii) of the Act mandating deduction of tax from this amount u/s 195. The first issue which arises for determination is whether the amount can be treated as pure re-imbursement or FTS. 8.2…

Tecnotree Convergence Lt D, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, Revenue’s appeal for Assessment Year 2011-12 is dismissed

ITA 1520/BANG/2017[2011-12]Status: DisposedITAT Bangalore03 Jul 2019AY 2011-12

Bench: Shri N. V. Vasudevan & Shri Jason P Boaz

For Respondent: Shri. Pradeep Kumar, CIT
Section 10ASection 10A(3)Section 115JSection 143(1)Section 143(3)Section 155Section 40Section 94(7)

…ver is earlier. In terms of the aforesaid provision, tax is required to be withheld in respect of payments to non-residents only if such payment is chargeable to tax in India. The Hon’ble Apex Court in the case of GE India Technology Centre (P) Ltd., Vs. CIT (327 ITR 456) (SC), explaining its earlier decision rendered in the case of Transmission Corporation of AP Vs. CIT (239 ITR 587) (SC), held that only if the income is chargeable to tax in India in the hands of the non-resident recipient, would ITA Nos. 1447 and 1448/Bang/2017 ITA Nos. 1519 and 1520/Bang/2017 Page 23 of 45 tax be required to be deducted at so…

Tecnotree Convergence Lt D, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, Revenue’s appeal for Assessment Year 2011-12 is dismissed

ITA 1519/BANG/2017[2010-11]Status: DisposedITAT Bangalore03 Jul 2019AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Jason P Boaz

For Respondent: Shri. Pradeep Kumar, CIT
Section 10ASection 10A(3)Section 115JSection 143(1)Section 143(3)Section 155Section 40Section 94(7)

…ver is earlier. In terms of the aforesaid provision, tax is required to be withheld in respect of payments to non-residents only if such payment is chargeable to tax in India. The Hon’ble Apex Court in the case of GE India Technology Centre (P) Ltd., Vs. CIT (327 ITR 456) (SC), explaining its earlier decision rendered in the case of Transmission Corporation of AP Vs. CIT (239 ITR 587) (SC), held that only if the income is chargeable to tax in India in the hands of the non-resident recipient, would ITA Nos. 1447 and 1448/Bang/2017 ITA Nos. 1519 and 1520/Bang/2017 Page 23 of 45 tax be required to be deducted at so…

Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore vs. M/S Tecnotree Convergence Ltd, Gurgaon

In the result, Revenue’s appeal for Assessment Year 2011-12 is dismissed

ITA 1448/BANG/2017[2011-12]Status: DisposedITAT Bangalore03 Jul 2019AY 2011-12

Bench: Shri N. V. Vasudevan & Shri Jason P Boaz

For Respondent: Shri. Pradeep Kumar, CIT
Section 10ASection 10A(3)Section 115JSection 143(1)Section 143(3)Section 155Section 40Section 94(7)

…ver is earlier. In terms of the aforesaid provision, tax is required to be withheld in respect of payments to non-residents only if such payment is chargeable to tax in India. The Hon’ble Apex Court in the case of GE India Technology Centre (P) Ltd., Vs. CIT (327 ITR 456) (SC), explaining its earlier decision rendered in the case of Transmission Corporation of AP Vs. CIT (239 ITR 587) (SC), held that only if the income is chargeable to tax in India in the hands of the non-resident recipient, would ITA Nos. 1447 and 1448/Bang/2017 ITA Nos. 1519 and 1520/Bang/2017 Page 23 of 45 tax be required to be deducted at so…