Transmission Corporation of Andhra Pradesh v. CIT

239 ITR 587Supreme Court of India1999#357 most cited

What is Transmission Corporation of Andhra Pradesh v. CIT authority for?

The Supreme Court lays down principles for deducting tax at source (TDS) under Section 195 on payments to non-residents, including aspects of income deemed taxable in India and the application of Double Taxation Avoidance Agreements (DTAAs) under Section 90.

243

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2026.

Also referred to as

Transmission Corporation of Andhra Pradesh v. CIT · 239 ITR 587 · Section 195 · withholding tax on non-residents · TDS payments to non-residents · Section 40(a)(i) disallowance · income deemed to accrue in India · Section 9(1) · Double Taxation Avoidance Agreement · Section 90 · business connection · fees for technical services

Sections most often in play

Section 195Section 37(1)Section 115JBSection 90Section 40(a)(i)Section 10AASection 143(3)Section 234B

Issues it is cited on

section 195(2)section 195(1)section 90(2)business connectionsection 195section 201(1a)section 201(1)section 40(a)(i)section 9(1)fees for technical servicespermanent establishmentsection 194

Judgments citing Transmission Corporation of Andhra Pradesh v. CIT

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5097/MUM/2011[2004-05]Status: DisposedITAT Mumbai30 Nov 2016AY 2004-05

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…o tax on the principle of mutuality since the assessee itself has deducted tax on some of the payments‖. Thereafter, he referred to the decision of Hon‟ble Supreme Court in the case of Transmission Corporation of Andhra Pradesh and Others vs. CIT, reported in 239 ITR 587 and came to the conclusion that, since assessee has not made any application under section 195 or 197 therefore, the payment made to DTT, Switzerland without deduction of tax is to be disallowed under section 40(a)(i) and accordingly, he disallowed sum of Rs.24,05,014/-. He also disallowed the payment of legal and professional charges paid to the…

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5096/MUM/2011[2003-04]Status: DisposedITAT Mumbai30 Nov 2016AY 2003-04

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…o tax on the principle of mutuality since the assessee itself has deducted tax on some of the payments‖. Thereafter, he referred to the decision of Hon‟ble Supreme Court in the case of Transmission Corporation of Andhra Pradesh and Others vs. CIT, reported in 239 ITR 587 and came to the conclusion that, since assessee has not made any application under section 195 or 197 therefore, the payment made to DTT, Switzerland without deduction of tax is to be disallowed under section 40(a)(i) and accordingly, he disallowed sum of Rs.24,05,014/-. He also disallowed the payment of legal and professional charges paid to the…

Deloitte Haskins and Sells, Mumbai vs. Asst CIT 11(2), Mumbai

In the result, all the three appeals of the assessee are treated as partly allowed for statistical purposes

ITA 5094/MUM/2011[2005-06]Status: DisposedITAT Mumbai30 Nov 2016AY 2005-06

Bench: Shri Rajendra & Shri Amit Shukla

Section 143(3)Section 195Section 244ASection 40

…o tax on the principle of mutuality since the assessee itself has deducted tax on some of the payments‖. Thereafter, he referred to the decision of Hon‟ble Supreme Court in the case of Transmission Corporation of Andhra Pradesh and Others vs. CIT, reported in 239 ITR 587 and came to the conclusion that, since assessee has not made any application under section 195 or 197 therefore, the payment made to DTT, Switzerland without deduction of tax is to be disallowed under section 40(a)(i) and accordingly, he disallowed sum of Rs.24,05,014/-. He also disallowed the payment of legal and professional charges paid to the…

DCIT, New Delhi vs. M/S Xansa India Ltd., Noida

In the result appeal of the revenue is dismissed

ITA 2283/DEL/2011[2004-05]Status: DisposedITAT Delhi26 Sept 2016AY 2004-05

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Ankur Garg, CIT DR
Section 10ASection 40Section 40a

…195 of the Act, it would be necessary that the aforesaid payment on account of reimbursement of subsistence allowance to Xansa UK is chargeable to tax in India in its hands. 11.71 The Supreme Court in the case of Transmission Corporation of A.P. Ltd. v. CIT: 239 ITR 587, held that the tax is required to be deducted from payment made to non-resident as per section 195 of the Act, if such payment is chargeable to tax in India 11.72 The Supreme Court, recently, in the case of GE India Technology Centre (P) Ltd. vs CIT: 327 ITR 456 held that no tax is required to be deducted under section 195(1) of the Act from the…

I.T.O WD - 12(3), Kolkata. vs. M/S Jai Vikshu Niketan Pvt Ltd, Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 1133/KOL/2013[2009-10]Status: DisposedITAT Kolkata23 Sept 2016AY 2009-10

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2009-10

Section 143(2)Section 143(3)

…in India during FY 2008-09. The AR has further submitted that as both the companies are foreign companies having no office in India, therefore, there is no question of deducting tax from them. The AR has submitted the case of Transmission Corporation of India 239 ITR 587 wherein the Hon'ble Supreme Court has held “if payment to non-resident is not chargeable to tax under the Indian Income Tax Act, then no TD has to be deducted.”. I have considered the finding of the AO in the assessment order and the remand report and the submission filed by the AR. It is clear that commission was paid to foreign companies which…

Asst CIT 14(2), Mumbai vs. Venus International, Mumbai

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

ITA 5010/MUM/2014[2005-06]Status: DisposedITAT Mumbai10 Aug 2016AY 2005-06

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm Office Of The Asstt. Vs. M/S. Venus International, Commissioner Of Income 26/28, Mohan Niwas, 1St Floor, Tax-14(2),Earnest House, Room No. 302, 3Rd Floor, Old Hanuman Lane, Nariman Point, Kalbadevi, Mumbai 400 021. Mumbai-02. Pan: Aaafv 5850B Appellant .. Respondent Appellant By Shri R.A. Dyani Respondent By Shri Naresh Jain Date Of Hearing: 03-05-2016 Date Of Pronouncement:10-08-2016 O R D E R

Section 143(1)Section 143(3)Section 148Section 195(2)Section 40Section 41

…ied upon the decision of Hon'ble High Court of Karnataka in the case of Samsung Electronics Co. Ltd. 345 ITR 494 pronounced on 24.09.2009, wherein it was held following the decision of Hon'ble Supreme Court in the case of Transmission Corporation of A.P. Ltd. 239 ITR 587 that the question of the nature involving exercise of determining the liability of the non-resident assessee can be answered only by going through the procedure envisaged u/s 195(2) on making an application to AO in this regard. The appellant has however contended the said decisions were not directly on the subject case of the appellant, as these…

D.C.I.T Cir - 4, Kolkata vs. M/S Madhu Jayanti International, Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 1011/KOL/2013[2008-09]Status: DisposedITAT Kolkata20 Jul 2016AY 2008-09

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2008-09

Section 143(2)Section 143(3)Section 172Section 197Section 197ASection 40

…IT(A) has erred in law in deleting the addition made by the AO of Rs.1,93,07,205/- in respect of payment made to the shipping companies without giving cognizance to the decision of Supreme Court in the case of M/s Transmission corporation of India reported in 239 ITR 587. 2. That on the facts and circumstances of the case the Ld. CIT(A) has erred in law in deleting the addition made by the AO of Rs.1,93,07,205/- for non deduction of TDS in respect of payments made to the shipping agents as reflected in the asst order who are assessed to tax in India and the payments received by them are taxable in India.” 3. Fac…

Sheraton Appearls, Mumbai vs. DCIT Cir 24(2), Mumbai

The appeal of the assessee is allowed

ITA 7607/MUM/2014[2010-11]Status: DisposedITAT Mumbai28 Jun 2016AY 2010-11

Bench: Shri Joginder Singh, Assessment Year: 2010-11

Section 10Section 115Section 194LSection 195Section 40

…ention of the assessee because the payments to a non-resident, being covered u/s 195 of the Act and the decision from Hon’ble Apex Court in G.E. India Technology (2010) 327 ITR 456 (SC), the ratio laid down in transmission corporation of AP Ltd. vs CIT (1999) 239 ITR 587, Since, the payees have no place of business in India or otherwise any presence whatsoever in India and since the services by the payees were rendered outside India, in fact no charge by the Revenue of the payee having any place of business/business connection in India, the explanation be of no consequence, thus, there is no obligation on the par…

M/S Te Connectivity India Private Limited, Bangalore vs. CIT, Bangalore

In the result, the appeal filed by the assessee-company is allowed

ITA 3/BANG/2015[2012-13]Status: DisposedITAT Bangalore25 May 2016AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raom/S.Te Connectivity India Pvt. Ltd. ‘Te’ Park, 22B, Doddenakundi 2Nd Phase, Industrial Area, Whitefield Road, Bangalore-560048. … Appellant Pan: Aabct 7374 C Vs. Income-Tax Officer (Ltu)(Tds) Bangalore. … Respondent

For Appellant: Shri Pravin Kishore Prasad, CAFor Respondent: Shri Sunil Kumar Agarwala, JCIT(DR)
Section 133(6)Section 201Section 250

…these cases before us. Therefore, in our view, there are adequate safeguards in the Act which would prevent revenue leakage. Applicability of the judgment in the case of Page 10 of 13 Transmission Corporation (supra) In Transmission Corporation’s case (1999) 239 ITR 587(SC) a nonresident had entered into a composite contract with the resident party making the payments. The said composite contract not only comprised supply of plant, machinery and equipment in India, but also comprised the installation and commissioning of the same in India. It was admitted that the erection and commissioning of plant and machiner…

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)

…learned Commissioner of Income Tax (Appeals)VI, Kolkata erred in arbitrarily and wrongly upholding the application, in the instant case, of the principles laid down by the Hon'ble Supreme Court in Transmission Corporation of Andhra Pradesh Ltd. v. CIT (1999) 239 ITR 587 (SC), notwithstanding his findings and observations in paragraph 11 of his impugned order dated 4th September, 2014, that the whole of the profits remitted to the overseas entities was not chargeable to tax in India. 6. That the findings and/or observations made by the learned Commissioner of Income Tax (Appeals)-VI, Kolkata, more particularly in…

Boscj Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by the assessee company is treated as

ITA 1583/BANG/2014[2012-13]Status: DisposedITAT Bangalore01 Mar 2016AY 2012-13

Bench: Smt Asha Vijayaraghavan & Shri Inturi Rama Rao

For Appellant: Shri K.P.Kumar, Sr. CounselFor Respondent: Smt. Rukmani Attri, JCIT
Section 195Section 201(1)Section 40Section 95

…ases before us. Therefore, in our view, there are adequate safeguards in the Act which would prevent revenue leakage. Applicability of the judgment in the case ITA No.1583(B)/2014 of Transmission Corporation (supra) In Transmission Corporation’s case (1999) 239 ITR 587(SC) a nonresident had entered into a composite contract with the resident party making the payments. The said composite contract not only comprised supply of plant, machinery and equipment in India, but also comprised the installation and commissioning of the same in India. It was admitted that the erection and commissioning of plant and machiner…

D.C.I.T Cir - 4, Kolkata vs. M/S Gillanders Arbuthnot & Co, Kolkata

In the result, the appeal of revenue dismissed

ITA 905/KOL/2013[2009-10]Status: DisposedITAT Kolkata29 Feb 2016AY 2009-10

Bench: Shri N.V.Vasusdevan & Shri Waseem Ahmedassessment Year :2009-10 Dcit, Circle-4, P-7, V/S. M/S Gillanders Arbuthnot Chowringhee Square & Co. Ltd., C-4, Gilander Kolkata-700 069 House, N.S.Road, Kolkata-700001 [Pan No.Aaacg 9832 F] .. अपीलाथ" /Appellant ""यथ"/Respondent

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

…on account of non deduction of TDS u/s 40(a)(ia) in view of the judgment given by the ITA No. 905/Kol/2013 A.Y.2009-10 DCIT CIR-4 Kol. v. M/s Gillander Arbuthnot & Co. Ltd. Page 4 Supreme court in the case of M/s. Transmission Corporation of India reported in 239 ITR 587.” 7. At the outset, Ld. Counsel for the assessee relied on the decision of Co-ordinate Bench of this Tribunal in assessee’s own case in ITA No. 589/K/2012 for AY 2007-08 dated 19.12.2013, wherein Tribunal has allowed as under: “7. We have heard rival contentions and gone through facts and circumstances of the case. We find that Assessing Officer…

Central Electronics Ltd., Uttar Pradesh vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 207/DEL/2014[2010-11]Status: DisposedITAT Delhi24 Feb 2016AY 2010-11

Bench: Smt. Diva Singh & Sh. O.P. Kantassessment Year: 2010-11 Ddit, Circle-3(1), 3Rd Floor, C.R. Central Electronics Ltd., 4, Vs. Industrial Area, Sahibabad, Uttar Building, I.P. Estate, New Delhi Pradesh. (Pan:Aaacc1262G) (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 195Section 40Section 42Section 43BSection 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’: NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2010-11 DDIT, Circle-3(1), 3rd Floor, C.R. Central Electronics Ltd., 4, Vs. Industrial Area, Sahibabad, Uttar Building, I.P. Estate, New Delhi Pradesh. (PAN:AAACC1262G) (Appellant) (Respondent) Appellant by Sh. R.S. Singhvi, CA Respondent by Ms. Rakhi Vimal, Sr. DR Date of hearing 05.01.2016 Date of pronouncement 24.02.2016 ORDER PER O.P. KANT, A.M.: This appeal of the assessee is directed against the order dated 06.11.2013 of the ld. CIT(A)-VI, New Delhi,…

ITO, Bangalore vs. M/S Cerner Healthcare Solutions Pvt. Ltd., Bangalore

In the result, the appeal by the revenue is dismissed

ITA 675/BANG/2012[2007-08]Status: DisposedITAT Bangalore08 Jan 2016AY 2007-08

Bench: Shri N.V.Vasudevan & Shri Inturi Rama Rao

For Appellant: Dr. P.K.Srihari, Addl.CITFor Respondent: Shri Chavali S. Narayan, CA
Section 10ASection 10A(4)Section 80H

…er payments are made to non-residents. Taxability of the sums paid to non-resident is not relevant. In coming to the above conclusion, the AO relied on the decision of the Hon’ble Supreme Court in the case of Transmission Corporation of AP and another Vs. CIT 239 ITR 587 (SC). The AO also came to the conclusion that the payment in question was a payment in the nature of FTS within the meaning of Sec.9(1)(vii) of the Act and that services rendered made available technical knowledge, experience, skill to the Assessee. The AO accordingly disallowed a sum of Rs.3,87,19,625 u/s.40(a)(ia) of the Act for non-deduction o…

Diu Resorts P.Ltd, Mumbai vs. ITO 8(1)(3), Mumbai

The appeal of the assessee is allowed

ITA 4797/MUM/2015[2011-12]Status: DisposedITAT Mumbai05 Jan 2016AY 2011-12

Bench: Shri Joginder Singh, Assessment Year: 2011-12 M/S Diu Resorts Pvt. Ltd, Ito-8(1)(3), Flat No.1404, B-29, Shastri Mumbai, बनाम/ Nagar, Opp. J.P. Road, Vs. Andheri(W), Mumbai-400029 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aabcd2843A

Section 143(1)

…on the decision in broadly in Toyo Engineering India Ltd. vs ACIT (supra) along with other cases. I find that in this case, the Bench vide order dated 13th September, 2005, by following the decision in Transmission Corporation of AP Ltd and Ors. vs CIT (1999) 239 ITR 587 (SC), Bhagwan Das Jain vs UOI 128 ITR 315 (SC) and CIT vs G. R. Karthikeyan (1993) 201 ITR 866 (SC) has concluded that credit of TDS has to be given in the relevant previous year, even though the assessee follows project completion method of accounting, thus, TDS, during financial year relevant to assessment year 1999-2000 had to be given credit…

JCIT(OSD), Circle -4, Kolkata vs. M/S Gillander Arbithnot & Co. Ltd., Kolkata

In the result, the appeal of revenue is dismissed

ITA 744/KOL/2012[2008-2009]Status: DisposedITAT Kolkata30 Oct 2015AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

For Appellant: N o n eFor Respondent: Shri S. M. Surana, Advocate & Shri Sunil Surana, ACA
Section 139(1)Section 143(3)Section 36(1)(va)Section 43Section 43B

…ircumstances of the case, Ld. CIT(A) erred in law in deleting the addition of Rs.11,35,554/- on account of non deduction of TDS u/s. 40(a)(ia) in view of the judgment given by the Supreme Court in the case of M/s. Transmission Corporation of India reported in 239 ITR 587.” 13. At the outset, Ld. Counsel for the assessee relied on the decision of Coordinate Bench of this Tribunal in assessee’s own case in ITA No. 589/K/2012 for AY 2007-08 dated 19.12.2013, wherein Tribunal has allowed as under: “7. We have heard rival contentions and gone through facts and circumstances of the case. We find that Assessing Officer…

Director of Income Tax vs. M/S Ericsson Communications Ltd

The appeal is dismissed

ITA/106/2002HC Delhi04 Sept 2015
For Appellant: Mr Rohit Madan and Mr Zoheb HossainFor Respondent: Mr M.S. Syali, Sr. Advocate with Mr Mayank
Section 195Section 201Section 23Section 260A

…zed. He further submitted that the question whether the amount credited included any element of income or not was not to be determined by the Assessee. He relied upon the judgment of the Supreme Court in Transmission Corporation of AP Ltd. v. CIT, (1999) 239 ITR 587 in support of his contention. 2015:DHC:7339-DB ITA 106/2002 Page 8 of 24 8. Mr Madan had further contended that the issue whether the Agreement dated 1st January, 1997 was void or not, was not relevant. He urged th…

Canara Bank, Bangalore vs. Income Tax Officer(TDS), Bangalore

In the result, these appeals filed by the assessees for A

ITA 1476/BANG/2014[2012-13]Status: DisposedITAT Bangalore12 Aug 2015AY 2012-13

Bench: Shri George George K & Shri Jason P. Boaz

For Appellant: Shri Balaram R Rao, AdvocateFor Respondent: Dr.P.K. Srihari, Addl. CIT (D.R.)
Section 12ASection 194ASection 196ASection 197(1)Section 2(15)Section 201Section 201(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘ B ’ BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER Sl. No. ITA No. & A.Y. Appellant Respondent 1. 1476/Bang/2014 Canara Bank, Income Tax Officer 2012-13 Lalbagh (West Branch), Bangalore. (TDS), LTU, Bangalore. 2. 1477/Bang/2014 Canara Bank, Koramangala Layout -do- 2012-13 Branch, Bangalore. 3. 1478/Bang/2014 Canara Bank, Trinity Circle Branch, -do- 2012-13 Bangalore. 4. 1479/Bang/2014 Canara Bank, Nelamangala Branch, -do- 2012-13 Bangalore. 5. 1480/Bang/2014 Canara Bank, Trinity Circle Branch, -do- 2013-14. Bangalore.…

The Commissioner of Income Tax vs. M/S Itc Hotels Ltd

ITA/477/2009HC Karnataka15 Jun 2015

Bench: ARAVIND KUMAR,VINEET SARAN

Section 195

…anation and consequently provisions of Ss.201(1) and 201(1A) of the Act was not attracted? 2 Whether the Tribunal was correct in not taking into consideration the principles enunciated by the Apex Court in Transmission Corporation of AP Ltd., Vs CIT – 239 ITR 587, where it clearly laid down that the taxability or not of the income of M/s Sheraton International, USA, was liable to tax in India or not had to be examined by the Assessing Officer under S.195 of the Act and not in the hands of the payer / deductor of TDS?…

ACIT, Chennai vs. Isis Exports P Ltd., Chennai

Appeals are dismissed

ITA 1964/CHNY/2014[2010-11]Status: DisposedITAT Chennai04 Feb 2015AY 2010-11

Bench: Shri B.R. Baskaran & Shri S. S. Godara] आयकर अपील सं./I.T.A.No.1963/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-11

For Appellant: Shri N. Madhavan, JCITFor Respondent: Mrs. S. Srividya, CA
Section 143(3)Section 195Section 195(2)Section 40

…आयकर अपील"य अ"धकरण, ‘डी’ "यायपीठ, चे"नई । IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH : CHENNAI "ी बी.आर. बा"करन, लेखा सद"य एवं "ी एस. एस. गोदारा, "या"यक सद"य के सम" । [BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER] आयकर अपील सं./I.T.A.No.1963/Mds/2014 "नधा"रण वष" /Assessment year : 2010-11 The Asstt. Commissioner of Vs. M/s India Shoes Exports P. Ltd Income-tax 151/4, Mount Poonamallee Road Company Circle II(3) Ramapuram Chennai Chennai 600 030 [PAN AAACI 5683 A] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shri N. Madhavan, JCIT ""यथ" क" ओ…