Oord ACZ India (P) Ltd. v. CIT

MARUTI SUZUKI INDIA LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…s not mitigated even in a situation where the payer has failed to deduct tax therefrom. [Refer sections 190 and 191 of the Act] Reference in this regard is made to the decision of the Delhi High Court in the case of Van Oord ACZ India (P.) Ltd. vs. CIT (2010) 323 ITR 130, wherein the High Court held that if in the hands of the recipient it is held that the sum was not chargeable to tax, there cannot be cast any obligation on the payer to deduct tax at source. To the same effect is the decision of the Bombay High Court in the case of DIT vs. Mahindra & Mahindra Ltd: 365 ITR 560. In view of the aforesaid, no disall…

DCIT, NEW DELHI vs. M/S. MARUTI SUZUKI INDIA LTD., NEW DELHI

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…s not mitigated even in a situation where the payer has failed to deduct tax therefrom. [Refer sections 190 and 191 of the Act] Reference in this regard is made to the decision of the Delhi High Court in the case of Van Oord ACZ India (P.) Ltd. vs. CIT (2010) 323 ITR 130, wherein the High Court held that if in the hands of the recipient it is held that the sum was not chargeable to tax, there cannot be cast any obligation on the payer to deduct tax at source. To the same effect is the decision of the Bombay High Court in the case of DIT vs. Mahindra & Mahindra Ltd: 365 ITR 560. In view of the aforesaid, no disall…

ACIT, CIRCLE-61(1), NEW DELHI vs. SUBRAMANIAM HARIHARAN, NEW DELHI

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

…eliance in this regard is placed on the decision of the Supreme Court in the case of GE India Technology Centre (P) Ltd vs CIT: 327 ITR 456 (SC) and Engineering Analysis Centre of Excellence (P) Ltd vs CIT: 432 ITR 471 (SC); Van Oord ACZ India (P) Ltd vs CIT: 323 ITR 130 (Del); Estel Communications (P) Ltd: 217 CTR 102 (Del); CIT vs ICL Shipping Ltd: 315 ITR 195 (Mad); Jindal Thermal 5 Power: 182 Taxman 252 (Kar) – SLP of department dismissed in 196 Taxman 495 (SC). 6. In this regard here itself we find it relevant to reproduce Section 195 of the Act which reads as under: “Section 195 (1) Any person responsibl…

SUBRAMANIAM HARIHARAN,DELHI vs. ACIT, CIRCLE-63(1), NEW DELHI

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

…eliance in this regard is placed on the decision of the Supreme Court in the case of GE India Technology Centre (P) Ltd vs CIT: 327 ITR 456 (SC) and Engineering Analysis Centre of Excellence (P) Ltd vs CIT: 432 ITR 471 (SC); Van Oord ACZ India (P) Ltd vs CIT: 323 ITR 130 (Del); Estel Communications (P) Ltd: 217 CTR 102 (Del); CIT vs ICL Shipping Ltd: 315 ITR 195 (Mad); Jindal Thermal 5 ITAs No.600/Del/2020, 9832/Del/2019 & 2134/Del/2018 Power: 182 Taxman 252 (Kar) – SLP of department dismissed in 196 Taxman 495 (SC). 6. In this regard here itself we find it relevant to reproduce Section 195 of the Act which read…

ANAND AND ANAND,NEW DELHI vs. JCIT, RANGE- 37, NEW DELHI

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

…eliance in this regard is placed on the decision of the Supreme Court in the case of GE India Technology Centre (P) Ltd vs CIT: 327 ITR 456 (SC) and Engineering Analysis Centre of Excellence (P) Ltd vs CIT: 432 ITR 471 (SC); Van Oord ACZ India (P) Ltd vs CIT: 323 ITR 130 (Del); Estel Communications (P) Ltd: 217 CTR 102 (Del); CIT vs ICL Shipping Ltd: 315 ITR 195 (Mad); Jindal Thermal 5 Power: 182 Taxman 252 (Kar) – SLP of department dismissed in 196 Taxman 495 (SC). 6. In this regard here itself we find it relevant to reproduce Section 195 of the Act which reads as under: “Section 195 (1) Any person responsible f…

ACIT CIRCLE 13(1), NEW DELHI vs. LX PANTOS INDIA PRIVATE LIMITED, NEW DELHI

In the result, the appeal of the Revenue is dismissed

Bench: Shri Kul Bharat & Shri M.Balaganesh

…es. Moreover, the said payment is not chargeable to tax under section 195. When the amount is not chargeable to tax in India, provisions of section 40(a)(i) of the Act are not applicable. 5.2 Hon'ble Delhi High Court in the case of Van Oord ACZ India P. Ltd. (323 ITR 130) has held that liability to deduct tax at source arises only when the sum paid to the non-resident was chargeable to tax in India. Once that was chargeable to tax, it was not for the assessee to find out how much amount of receipt was chargeable to tax, but it was the obligation of the assessee to deduct the tax at source on the entire sum paid b…

ACIT CIRCLE 13(1), NEW DELHI vs. LX PANTOS INDIA PRIVATE LIMITED, NEW DELHI

In the result, the appeal of the Revenue is dismissed

Bench: Shri Kul Bharat & Shri M.Balaganesh

…es. Moreover, the said payment is not chargeable to tax under section 195. When the amount is not chargeable to tax in India, provisions of section 40(a)(i) of the Act are not applicable. 5.2 Hon'ble Delhi High Court in the case of Van Oord ACZ India P. Ltd. (323 ITR 130) has held that liability to deduct tax at source arises only when the sum paid to the non-resident was chargeable to tax in India. Once that was chargeable to tax, it was not for the assessee to find out how much amount of receipt was chargeable to tax, but it was the obligation of the assessee to deduct the tax at source on the entire sum paid b…

ADDL.CIT, SPECIAL RANGE-1, NEW DELHI vs. DINESH KUMAR MATHUR, NEW DELHI

In the result, the appeal of the Revenue is dismissed

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

…re genuine reimbursement of expenses and there was no profit element and hence no I.T.A. No.1016/Del/2019 10 income liable to tax was contained therein. The Hon’ble Delhi High Court in case of Van Oord ACZ India (P) Ltd. vs. Commissioner of Income Tax [2010] 323 ITR 130 (Delhi) held that liability to deduct at source arises only when the sum is paid to the non-resident was chargeable to tax. Once that was chargeable to tax, it was not for the assessee to find out how much amount of the receipts was chargeable to tax, but it was the obligation of the assessee to deduct the tax at source on the entire sum paid by…

ITO (INTL. TAXATION), NEW DELHI vs. M/S ASIAN HOTELS NORTH LTD., DELHI

In the result, the appeal of the Revenue is dismissed

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2013-14

…e would arise in as much as tax at source is to be deducted on income and not on expenses. Global management expenses were reimbursement of ITO vs Asian Hotels North Ltd. 22 cost and as per the decision in the case of Van Oord ACZ India (P) Ltd. v. CIT [2010] 323 ITR 130/189 Taxman 232 (Delhi) tax was not deductible.” 14. Considering the issue involved from this perspective also, in our view, no income can be said to accrue or arise to HCSL in India making the assessee liable to withhold tax under section 195 of the Act. We accordingly uphold the order of the Ld. CIT(A) and reject the appeal of the Revenue. 15.…

CHANDER MOHAN LAL,NEW DELHI vs. ACIT CIRCLE - 61(1), NEW DELHI

Bench: Shri Saktijit Dey & Dr. B.R.R. Kumar[Assessment Year: 2015-16]

…Insurance Co. Ltd: 309 ITR 356 (AAR) xv. GE India Technology Centre (P) Ltd. Vs. CIT : 327 ITR 456 (SC) xvi. Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT : Civil (Appeal) No. 8733-8734 of 2018 (SC). xvii. Van Oord ACZ India (P) Ltd. Vs. CIT : 323 ITR 130 (Del.) xviii. Estel Communications (P) Ltd. : 2017 CTR 102 (Del) xix. CIT Vs. ICL Shipping Ltd.”315 ITR 195 (Mad.) xx. Jindal Thermal Power : 182 Taxman 252 (Kar)- SLP of Department dismissed in 196 Taxman 495 (SC) xxi. NQA Quality Systems…

JAS FORWARDING WORLDWIDE PVT. LTD.,GURGAON vs. DCIT, NEW DELHI

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

…der this Act' under Section 195 of the Act states that sums payable to non-resident is not liable to deduct tax if such sum is not chargeable to tax. This view has been upheld by the Hon'ble Delhi High Court in the case of Van Oord ACZ India (P) Ltd. vs CIT, 323 ITR 130; and by Hon'ble Supreme Court ruling in the case GE India Technology Cent. (P) Ltd (2010); 327 ITR 456. The Hon'ble Supreme Court has held that person paying interest or any other sum to non-resident is not liable to deduct tax if such sum is not chargeable to tax. Thus, in the absence of any 'business connection, there was no obligation on the A…

JAS FORWARDING WORLDWIDE PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing)

…der this Act' under Section 195 of the Act states that sums payable to non-resident is not liable to deduct tax if such sum is not chargeable to tax. This view has been upheld by the Hon'ble Delhi High Court in the case of Van Oord ACZ India (P) Ltd. vs CIT, 323 ITR 130; and by Hon'ble Supreme Court ruling in the case GE India Technology Cent. (P) Ltd (2010); 327 ITR 456. The Hon'ble Supreme Court has held that person paying interest or any other sum to non-resident is not liable to deduct tax if such sum is not chargeable to tax. Thus, in the absence of any 'business connection, there was no obligation on the A…

ACIT, NEW DELHI vs. MR GURCHARAN SINGH, DELHI

In the result appeal of the Id

Bench: Shri Amit Shuklaa N D Shri Prashant Maharishi(Through Video Conferencing) Acit, Shri Gurcharan Singh, Vs. 646, 1St Floor, Circle-47(1), Gali Ganteshwar, Katra Neel, Chandni Chowk, New Delhi. Delhi - 110 006. Pan: Atbps9241F (Appellant) (Respondent)

…INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “E”: NEW DELHI ] BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER A N D SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) ACIT, Shri Gurcharan Singh, Vs. 646, 1st Floor, Circle-47(1), Gali Ganteshwar, Katra Neel, Chandni Chowk, New Delhi. Delhi - 110 006. PAN: ATBPS9241F (Appellant) (Respondent) Department by : Shri S. S. Negi, Sr. DR Assessee by : Shri Mayank Patwari, CA Date of Hearing 08/04/2021 Date of pronouncement IP/06/2021 O R D E R PER PRASHANT MAHARISHI. A. M. 1. This appeal is filed by the Assistant Commissioner of Income Tax, Circle 47 (1),…

M/S ECORYS NEDERLANDS B.V.,,DELHI vs. ADIT (INTERNATIONAL TAXATION), NEW DELHI

In the result the appeal filed by the assessee is allowed for statistical purposes in the terms indicated above

Bench: Shri R.K. Panda & Ms Suchitra Kambleasstt. Year 2011-12

…Ld. CIT(A) is in accordance with the established legal position on the issue. 49 M/s. Ecorys Nederlands vs ADIT 3.10 Further the Ld. CIT(A) in view of the decision of the Hon’ble Delhi High Court in the case of Van Oord ACZ India (P) Ltd versus CIT (2010) 323 ITR 130 (del) has held that the sum payable to the nonresidents was not chargeable to income tax in their hands and thus the assessee was not liable for deduction of tax at source on such payment under the provisions of section 195 and no disallowance under section 40(a)(i) could be made. 3.11 We find that the order of the Ld. CIT(A) on the issue in dis…

ACIT, NEW DELHI vs. M/S. GRANT THORNTON INDIA LLP, NEW DELHI

In the result, the appeal of the Revenue is dismissed

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 6489/Del/2016 : Asstt. Year : 2012-13 Asstt. Commissioner Of Income Vs M/S Grant Thornton India Llp, Tax, Circle-52(1), L-41, Connaught Circus, New Delhi New Delhi-110001 (Appellant) (Respondent) Pan No. Aacfg9740K Assessee By : Sh. Sh. Vinod Bindal, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing: 25.07.2019 Date Of Pronouncement: 25.07.2019 Order Per Dr. B. R. R. Kumar:

…. In our opinion, the finding of the Ld. CIT(A) is in accordance with the established legal position on the issue. 3.10 Further the Ld. CIT(A) in view of the decision of the Hon’ble Delhi High Court in the case of Van Oord ACZ India (P) Ltd versus CIT (2010) 323 ITR 130 (del) has held that the sum payable to the nonresidents was not chargeable to income tax in their hands and thus the assessee was not liable for deduction of tax at source on such payment under the provisions of section 195 and no disallowance under section 40(a)(i) could be made. 3.11 We find that the order of the Ld. CIT(A) on the issue in dis…

JAS FORWARDING WORLDWIDE PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

The appeal of the Assessee is allowed whereas the appeal of the Revenue is dismissed

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year:2007-08

…make it clear that liability to deduct tax at source arises only when the sum payable to the non-resident is chargeable to tax. This view has also been followed by the jurisdictional High Court of Delhi in the case of Van Oord ACZ India (P) Ltd. v CIT (2010) 323 ITR 130(Del): 189 Taxman 232( Del) 230 CTR(Del) 365. On the issue as to whether section 195(1) arises only if the payment is chargeable to true in the hands of the recipient, I find that the issue is now covered and settled by the judgment of the Hon'ble Supreme Court in the case of GE India Technology Cent. (P.) Ltd. (2010) 327 ITR 456 wherein the Hon'b…