GVK Industries Ltd. v. Income Tax Officer

371 ITR 453Supreme Court of India2015#895 most cited

What is GVK Industries Ltd. v. Income Tax Officer authority for?

Advice given by a financial consultancy firm on the modalities of procuring loans is considered a 'technical and consultancy service' for the purpose of taxation of fees for technical services.

119

judgments rely on this decision, according to BharatTax’s citation analysis of 366,421 Indian tax judgments — from 2014 to 2025.

Also referred to as

GVK Industries 371 ITR 453 · Section 9(1)(vii) · Fees for technical services · FTS · Technical and consultancy service · Financial consultancy advice · Loan procurement modalities · Scope of technical services · Make available clause · International taxation · DTAA Article 12

Also reported as

54 Taxmann.com 347197 Taxmann 337

Sections most often in play

Section 143(3)Section 9(1)(vii)Section 147Section 132Section 153ASection 148Section 234ASection 234B
Read the full judgment

Issues it is cited on

section 292c(1)(i)section 132(4a)(i)section 2(15a)section 209(1)section 153(a)(1)section 17(2)(iiia)section 14(a)section 292c(1)make available clausesection 209section 9(1)(vii)(b)section 17(2)

Judgments citing GVK Industries Ltd. v. Income Tax Officer

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4050/DEL/2015[2012-13]Status: DisposedITAT Delhi28 May 2019AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…taxability of commission payment u/s 9 (1) 91) and ( (1) (vii) of the act and has decided the issue as under :- “4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 ITR 97/48 Taxman 347 (AAR) held that the commission payment to the non-resident company on procuring orders was taxable as 'fee for technical service' under sub-clause (b) to Section 9(1) (vii) of the Act. The initial direction that the tax should be deducted at source @ 20% recorded in the order dated 4th May, 2010, was modified/reduced to 10% vide orde…

ACIT, New Delhi vs. M/S. Kapoor Industries, New Delhi

Accordingly the entire three grounds rose in appeal for AY 2011-12 is dismissed

ITA 4049/DEL/2015[2011-12]Status: DisposedITAT Delhi28 May 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri R. K. Mehra, CAFor Respondent: Shri K Hauthang, Sr. DR
Section 143(3)Section 195Section 40Section 9

…taxability of commission payment u/s 9 (1) 91) and ( (1) (vii) of the act and has decided the issue as under :- “4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 ITR 97/48 Taxman 347 (AAR) held that the commission payment to the non-resident company on procuring orders was taxable as 'fee for technical service' under sub-clause (b) to Section 9(1) (vii) of the Act. The initial direction that the tax should be deducted at source @ 20% recorded in the order dated 4th May, 2010, was modified/reduced to 10% vide orde…

ACIT - 2(2)(1), Mumbai vs. Indo Industries Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 7462/MUM/2017[2014-15]Status: DisposedITAT Mumbai01 Feb 2019AY 2014-15

Bench: Shri G Manjunatha () & Shri Ravish Sood () Acit-2(2)(10, Mumbai Vs M/S Indo Industries Ltd A-1, Samir Apartments 169, S.V. Road, Andheri (W), Mumbai-58 Pan : Aaaci8197D Appellant Respondednt

Section 143(3)Section 195Section 40Section 9(1)(vii)

…1 ITA 7462/Mum/2017 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI Before Shri G Manjunatha (ACCOUNTANT MEMBER) AND Shri Ravish Sood (JUDICIAL MEMBER) ACIT-2(2)(10, Mumbai vs M/s Indo Industries Ltd A-1, Samir Apartments 169, S.V. Road, Andheri (W), Mumbai-58 PAN : AAACI8197D APPELLANT RESPONDEDNT Appellant by Shri K.L. Kanak Respondent by Shri Bhupendra Shah Date of hearing 28-01-2019 Date of pronouncement 01-02-2019 O R D E R Per G Manjunatha, AM : This appeal filed by the revenue is directed against order of the CIT(A)-5, Mumbai dated 19-12-2017 and it pertains to AY 2014-15. The revenue…

DCIT 14(1)(2), Mumbai vs. Chemical Process Piping P.Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1503/MUM/2016[2010-11]Status: DisposedITAT Mumbai24 Jul 2018AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm Dcit 14(1)(2) Vs. M/S. Chemical Process Room No.470, 4Th Floor Piping Pvt. Ltd., Aayakar Bhavan Cpe Plots, Bsd Marg Maharshikarve Road Off. Sion Trombay Road Mumbai – 400 020 Govandi, Mumbai – 400 088 Pan/Gir No. Aaccc6212D Appellant) .. Respondent)

Section 143(3)Section 195Section 40Section 9Section 9(2)

…crue or arise in India. Since the appellant had exported its goods, the income is sourced outside India. Reliance was placed on decisions in case of Aktiengesellschaft Kubule Kopp & Kausch W. Germany by BHEL, 2003 262 ITR 513 (Mad) & CVK Industries Ltd Vs ITO 371 ITR 453 & Lufthansa Cargo India (20I5) TS- 209-HC dated 27 May 2015 . This contention of the appellant is based on the later part of exception provided in the Section 9(l)(vii)(b), ie. "9(l)(vii) income by way of fees for technical services payable by (a)……….. (b) a person who is a resident, except where the fees are payable in respect of services utilis…

ACIT - 2(3)(1), Mumbai vs. Western Outdoor Interactive P. Ltd., Mumbai

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

ITA 5262/MUM/2016[2013-14]Status: DisposedITAT Mumbai20 Jun 2018AY 2013-14

Bench: Shri Joginder Singh() & Shri G Manjunatha ()

Section 115JSection 143(2)Section 143(3)Section 40

…s and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that no TDS was deductable on payments made to foreign parties without appreciate the decision of AAR (Income Tax) New Delhi in the case of Wallace Pharmaceuticals (P) Ltd, 278 ITR 97. 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that the Circular no 23 Dt. 23.07.1969 & Circular no. 786 dt. O7.02.2OOO have been withdrawn by the CBDT. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding no TDS was deductable…

ITO 2(2)(1), Mumbai vs. Indo Industries Ltd, Mumbai

In the result, the Revenue’s appeal is dismissed

ITA 4642/MUM/2016[2012-13]Status: DisposedITAT Mumbai11 May 2018AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri N. K. Pradhan, Am आयकर अपील सं./I.T.A. No.4642/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) Ito-2(2)(1) M/S. Indo Industries Ltd. बनाम/ R. No. 549, 5Th Floor, A-1, Sameer Apartments, Aayakar Bhavan, M. K. Road, S. V. Road, Andheri (W), Vs. Mumbai-400 020 Mumbai-400 058 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaaci 8197 D (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Ms. Arju Garodia ""यथ" क" ओर से/Respondent By : Shri Bhupendra Shah सुनवाई क" तार"ख / : 09.03.2018 Date Of Hearing घोषणा क" तार"ख / : 11.05.2018 Date Of Pronouncement आदेश / O R D E R Per Saktijit Dey, J. M.: The Aforesaid Appeal At The Instance Of The Revenue Is Directed Against The Order Dated 04.04.2016 Of The Ld. Commissioner Of Income Tax (Appeals)-5, Mumbai For The Assessment Year 2012-13. 2. The Solitary Issue Arising For Consideration In The Present Appeal Relates To The Deletion Of Disallowance Made U/S. 40(A)(I) Of The Income Tax Act, 1961 By The Assessing Officer On Account Of Commission Paid To Foreign Agents.

For Appellant: Ms. Arju GarodiaFor Respondent: Shri Bhupendra Shah
Section 195Section 40Section 9(1)(i)

…आयकर अपील"य अ"धकरण “जे” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM AND SHRI N. K. PRADHAN, AM आयकर अपील सं./I.T.A. No.4642/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) ITO-2(2)(1) M/s. Indo Industries Ltd. बनाम/ R. No. 549, 5th Floor, A-1, Sameer Apartments, Aayakar Bhavan, M. K. Road, S. V. Road, Andheri (W), Vs. Mumbai-400 020 Mumbai-400 058 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AAACI 8197 D (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant by : Ms. Arju Garodia ""यथ" क" ओर से/Respondent by : Shri Bhupendra Shah सुनवाई क" तार…

Dorf Ketal Chemicals Llc, Mumbai vs. DCIT Cen Cir 45, Mumbai

In the result, this appeal by the assessee stands dismissed

ITA 4819/MUM/2013[2009-10]Status: DisposedITAT Mumbai22 Mar 2018AY 2009-10

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No. 4819/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) M/S. Dorf Ketal Chemicals Llc Dy. Cit, Central Circle-45, बनाम/ 1, Dorf Ketal Tower Orlem, Mumbai Vs. Malad (West), Mumbai-400 064 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaccd 1719 J (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Nishant Thakkar & Shri Hiten Chande ""यथ" क" ओर से/Respondent By : Shri Abhijit Patankar सुनवाई क" तार"ख / : 16.01.2018 Date Of Hearing घोषणा क" तार"ख / : 22.03.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Assessee Is Directed Against The Order By The Commissioner Of Income Tax (Appeals) Dated 28.03.2013 & Pertains To The Assessment Year 2009- 10. 2. Brief Facts Of The Case Are That The Assessee, I.E., Dorf Ketal Chemicals Llc (Hereinafter Referred To As Dkllc) Is A 100% Subsidiary Of An Indian Company Dorf Ketal India Pvt. Ltd, (Herein After Referred To As Dkip). Dkllc Has Its Control & 2 M/S. Dorf Ketal Chemicals Llc Management In India & Therefore, The Dkllc, Apart From Being The Resident Of United States, Has Also Become Tax Resident In India By Virtue Of Its 100%

For Appellant: Shri Nishant Thakkar &For Respondent: Shri Abhijit Patankar
Section 132Section 132(1)Section 143(3)Section 153ASection 4Section 40Section 9

…आयकर अपील"य अ"धकरण “डी” "यायपीठ मुंबई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI AMARJIT SINGH, JM आयकर अपील सं./I.T.A. No. 4819/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) M/s. Dorf Ketal Chemicals LLC Dy. CIT, Central Circle-45, बनाम/ 1, Dorf Ketal Tower Orlem, Mumbai Vs. Malad (West), Mumbai-400 064 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. AACCD 1719 J (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant by : Shri Nishant Thakkar & Shri Hiten Chande ""यथ" क" ओर से/Respondent by : Shri Abhijit Patankar सुनवाई क" तार"ख / : 16.01.2018 Da…

DCIT, Chennai vs. Tractors and Farm Equipments Ltd., Chennai

In the result , the assessee’s appeal is treated as partly allowed and

ITA 1922/CHNY/2016[2006-07]Status: DisposedITAT Chennai27 Sept 2017AY 2006-07

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. R. Vijayaraghavan, Advocate
Section 143(3)Section 195Section 40Section 40a

…income is deemed to be accrued or arise in India and hence liable for TDS u/s 195 of the Income Tax Act as per explanation (b) to section 9(1)(vii) and also in the light of decision of Hon'ble Supreme Court in the case of M/s. GVK Industries Limited Vs. ITO (371 ITR 453)(SC.) irrespective of the fact that the employee of the assessee company is authorized signatory in this company. 2.3. The ld. CIT(A) ought to have upheld the disallowance in the same line of decision taken by him with respect to reimbursement of expenses to M/s. TAFE USA Inc in this current order.” 9. The assessee has overseas office in London,…

Tractors and Farm Equipments Ltd., Chennai vs. ACIT, Chennai

In the result , the assessee’s appeal is treated as partly allowed and

ITA 1264/CHNY/2016[2006-07]Status: DisposedITAT Chennai27 Sept 2017AY 2006-07

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. R. Vijayaraghavan, Advocate
Section 143(3)Section 195Section 40Section 40a

…income is deemed to be accrued or arise in India and hence liable for TDS u/s 195 of the Income Tax Act as per explanation (b) to section 9(1)(vii) and also in the light of decision of Hon'ble Supreme Court in the case of M/s. GVK Industries Limited Vs. ITO (371 ITR 453)(SC.) irrespective of the fact that the employee of the assessee company is authorized signatory in this company. 2.3. The ld. CIT(A) ought to have upheld the disallowance in the same line of decision taken by him with respect to reimbursement of expenses to M/s. TAFE USA Inc in this current order.” 9. The assessee has overseas office in London,…

Mitsubishi Corporation India Pvt. Ltd., New Delhi vs. DCIT, Circle- 16(2), New Delhi

ITA 5184/DEL/2017[2013-14]Status: DisposedITAT Delhi22 Sept 2017AY 2013-14

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Tarandeep Singh, AdvocateFor Respondent: Shri H.K. Choudhary, CIT DR
Section 143Section 144CSection 40

…within the provision analogous to section 9(1)(i) of the Act. Similar view has been reiterated by the Hon’ble Supreme Court in CIT vs. T.I & M Sales Ltd. (1987) 166 ITR 93 (SC) and more recently in GVK Industries Ltd. And 13 Another vs. ITO and Another (2015) 371 ITR 453 (SC). It, therefore, follows that when a non-resident makes offshore supply of goods to an Indian enterprise, without performing any activity in India, no income accrues or arises to him in India. If, however, some activity is done in India or some operations are performed in India, then, the income attributable to such operations is chargeable t…

M/S Balmer Lawries & Co. Ltd., Kolkata vs. Income Tax Officer(It) WD-1(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2079/KOL/2014[2012-2013]Status: DisposedITAT Kolkata27 Apr 2016AY 2012-2013

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2012-13 M/S Balmer Lawrie & Co. V/S. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [Pan No. Aabcb 0984 E] Bhawan (Poorva), 2Nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, Sr-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, Jcit-Dr ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date Of Hearing 27-04-2016 घोषणा क" तार"ख/Date Of Pronouncement

Section 195Section 201(1)Section 5(2)(b)

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri Mahavir Singh, Judicial Member and Shri Waseem Ahmed, Accountant Member Assessment Year :2012-13 M/s Balmer Lawrie & Co. V/s. Income Tax Officer Ltd., 21, N.S.Road, (International Taxation), Kolkata-700 001 Ward-1(1), Aayakar [PAN No. AABCB 0984 E] Bhawan (Poorva), 2nd Floor, R. No.215, 110, Shanti Pally, Kolkata- 700 107 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri M.K.Poddar, SR-Advocate अपीलाथ" क" ओर से/By Appellant Shri C.P.Bhatia, JCIT-DR ""यथ" क" ओर से/By Respondent 18-02-2016 सुनवाई क" तार"ख/Date of Hearing 27-04-2016 घोषणा क" तार…

Pahilajrai Jaikishan, Mumbai vs. DCIT 19(3), Mumbai

In the result, the appeal is allowed

ITA 994/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…th the question of receipt, accrual or deemed accrual of the said income in India as per the mandate of the Act. 4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 ITR 97/48 Taxman 347 (AAR) held that the commission payment to the non-resident company on procuring orders was taxable as 'fee for technical service' under sub-clause (b) to Section 9(1) (vii) of the Act. The initial direction that the tax should be deducted at source @ 20% recorded in the order dated 4th May, 2010, was modified/reduced to 10% vide orde…

Asst CIT 19(3), Mumbai vs. Pahilajrai Jaikishin, Mumbai

In the result, the appeal is allowed

ITA 1562/MUM/2014[2010-11]Status: DisposedITAT Mumbai01 Feb 2016AY 2010-11

Bench: Shri Shailendra Kumar Yadav & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.1562/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

Section 14Section 143(2)Section 143(3)Section 14ASection 37(1)Section 40

…th the question of receipt, accrual or deemed accrual of the said income in India as per the mandate of the Act. 4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: Wallace Pharmaceuticals (P.) Ltd., In re [2005] 278 ITR 97/48 Taxman 347 (AAR) held that the commission payment to the non-resident company on procuring orders was taxable as 'fee for technical service' under sub-clause (b) to Section 9(1) (vii) of the Act. The initial direction that the tax should be deducted at source @ 20% recorded in the order dated 4th May, 2010, was modified/reduced to 10% vide orde…

The Dy Commissioner of Income-Tax vs. M/S.Jindal Thermal Power Company Ltd

RP/319/2010HC Karnataka24 Jul 2015

Bench: MOHAN M. SHANTANAGOUDAR,C.R.KUMARASWAMY

Section 114Section 47Section 9

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24th DAY OF JULY, 2015 PRESENT THE HON’BLE MR. JUSTICE MOHAN M. SHANTANAGOUDAR AND THE HON’BLE MR. JUSTICE C.R. KUMARASWAMY R.P. NO.318/2010 IN ITA NO.3025/2005 c/w R.P. NO.319/2010 IN ITA NO.3022/2005, R.P. NO.317/2010 IN ITA NO.3023/2005 IN R.P. NO.318/2010 IN ITA NO.3025/2005: BETWEEN: 1. The Dy. Commissioner of Income-Tax (TDS) HMT Bhavan Bellary Road Bangalore 2. The Commissioner of Income Tax (TDS) HMT Bhavan Bellary Road Bangalore .. Petitioners (By Sri K.V.Aravind, Adv.,) 2…

Commissioner of Income Tax -IV vs. Mis. Grup Ism P. Ltd

The appeal is dismissed

ITA/325/2014HC Delhi29 May 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 194JSection 260ASection 40Section 9

…ultation given by the non-resident to the resident Indian payer.‖ (emphasis supplied) Subsequent to the decision in Panalfa Autoelektrik (supra), the aforesaid definitions were also adverted to by the Supreme Court in GVK Industries Ltd. v. ITO, (2015) 371 ITR 453. 17. Gauged from the above excerpts, it is evident that „consultancy services‟ would mean something akin to advisory services provided by the non-resident, pursuant to deliberation between parties. Ordinarily, it would not involve instances where the non-resident is acting as a link between the resident and another party, facilitating the t…

Commissioner of Income Tax-IV vs. M/S. Grup Ism P. Ltd

The appeal is dismissed

ITA-325/2014HC Delhi29 May 2015
Section 194JSection 260ASection 40Section 9

…ultation given by the non-resident to the resident Indian payer.‖ (emphasis supplied) Subsequent to the decision in Panalfa Autoelektrik (supra), the aforesaid definitions were also adverted to by the Supreme Court in GVK Industries Ltd. v. ITO, (2015) 371 ITR 453. 17. Gauged from the above excerpts, it is evident that „consultancy services‟ would mean something akin to advisory services provided by the non-resident, pursuant to deliberation between parties. Ordinarily, it would not involve instances where the non-resident is acting as a link between the resident and another party, facilitating the t…

Director of Income Tax Delhi vs. M/S Lufthansa Cargo India P

ITA/95/2005HC Delhi27 May 2015

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

Section 195Section 260ASection 9(1)(vii)

…a statute has been clothed or set at naught the working of an Act by becoming a hindrance in the interpretation of the same. Counsel lastly relied on the recent Supreme Court judgment interpreting Section 9(1)(vii) of the Act in GVK Industries Ltd. v. ITO 371 ITR 453. Explaining the interplay between Section 9(1)(vii) and the amendment made by Finance Act, 2007 and Finance Act, 2010 resulting in retrospective insertion of Explanation to Section 9(2) of the Act, the Court clarified that the exception provided in terms of clause (b) to Section 9(1)(vii) was not overridden by insertion of Explanation to Sect…

Director of Income Tax Delhi vs. M/S Lufthansa Cargo India P

ITA - 95 / 2005HC Delhi27 May 2015
Section 195Section 260ASection 9(1)(vii)

…a statute has been clothed or set at naught the working of an Act by becoming a hindrance in the interpretation of the same. Counsel lastly relied on the recent Supreme Court judgment interpreting Section 9(1)(vii) of the Act in GVK Industries Ltd. v. ITO 371 ITR 453. Explaining the interplay between Section 9(1)(vii) and the amendment made by Finance Act, 2007 and Finance Act, 2010 resulting in retrospective insertion of Explanation to Section 9(2) of the Act, the Court clarified that the exception provided in terms of clause (b) to Section 9(1)(vii) was not overridden by insertion of Explanation to Sect…

Director of Income Tax (Intl. Tax.)-II

ITA/292/2014HC Delhi18 Sept 2014
Section 195Section 195(2)Section 9Section 9(1)Section 9(1)(i)

…h the question of receipt, accrual or deemed accrual of the said income in India as per the mandate of the Act. 4. The Assessing Officer relying upon the decision of the Authority for Advance Rulings in In Re: M/s. Wallace Pharmaceuticals P. Ltd. [2005] 278 ITR 97 (AAR) held that the commission payment to the non-resident company on procuring orders was taxable as „fee for technical service‟ under sub-clause (b) to Section 9(1) (vii) of the Act. The initial direction that the tax should be deducted at source @ 20% recorded in the order dated 4th May, 2010, was modified/reduced to 10% vide order dated 8…