Which cases are most cited on Section 172?

CIT(A) v. Eon Technology Pvt. Ltd. (343 ITR 366) — 58 citing judgments; DCIT v. Divi’s Laboratories Ltd. (131 ITD 271) — 12 citing judgments; ITO v. Trident Exports (149 ITD 361) — 3 citing judgments; Poompuhar Shipping Corpn. Ltd. v. ITO (Int. Tax)-II, Chennai (76 ITD 37) — 3 citing judgments.

How many judgments are there on Section 172?

BharatTax indexes 72 ITAT, High Court and Supreme Court judgments that turn on Section 172 of the Income Tax Act, 1961.

Section 172 of the Income Tax Act

Q: What is the leading case on Section 172 of the Income Tax Act?

CIT(A) v. Eon Technology Pvt. Ltd. (343 ITR 366) is the decision most relied on for Section 172, cited in 58 judgments. Payments to a non-resident agent for services rendered outside India, where the agent has no permanent establishment (PE) or business connection in India, are not chargeable to tax in India. Consequently, there is no obligation to deduct tax at source under Section 195, and no disallowance under Section 40(a)(i) can be made.

Income-tax Act, 2025: s.316

Section 172 of the Income-tax Act, 1961 corresponds to section 316 (Shipping business of non-residents) of the Income-tax Act, 2025.

Read section 316 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 172 is CIT(A) v. Eon Technology Pvt. Ltd. (343 ITR 366), cited in 58 of the 72 judgments on BharatTax that turn on this section.

Leading authorities on Section 172

CIT(A) v. Eon Technology Pvt. Ltd.

343 ITR 366 · 2012 · High Court

citing judgments

Payments to a non-resident agent for services rendered outside India, where the agent has no permanent establishment (PE) or business connection in India, are not chargeable to tax in India. Consequently, there is no obligation to deduct tax at source under Section 195, and no disallowance under Section 40(a)(i) can be made.

DCIT v. Divi’s Laboratories Ltd.

131 ITD 271 · 2011 · ITAT

citing judgments

Section 195 of the Income Tax Act, 1961 does not require tax to be deducted at source on payments made to non-resident agents for services rendered entirely outside India, as such income is not taxable in India.

ITO v. Trident Exports

149 ITD 361 · ITAT

citing judgments

Poompuhar Shipping Corpn. Ltd. v. ITO (Int. Tax)-II, Chennai

76 ITD 37 · 2001 · ITAT

citing judgments

Judgments on Section 172

Arcochart Trading and Shipping Private Limited, Mumbai, Agent Interocean Shipping (India) Pvt. Ltd. vs. ITO, International Taxation, Nellore

In the result, assessee’s appeal in ITA

ITA 558/HYD/2017[2014-15]Status: DisposedITAT Hyderabad31 Aug 2018AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri Inturi Rama Rao

For Appellant: Shri Subramanyam ChimalapatiFor Respondent: Smt. M. Narmada, DR

Section 143(3)Section 154Section 172Section 172(2)Section 172(3)Section 172(4)

The Asst. CIT, Guntur vs. M/S. Best India Yobacco Suppliers Pvt.Ltd, Guntur

In the result appeal of the revenue is allowed for statistical purpose

ITA 238/VIZ/2017[2011-2012]Status: DisposedITAT Visakhapatnam08 Aug 2018AY 2011-2012

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.238/Viz/2017 (धििाारण िर्ा/Assessment Year:2011-12) Acit Vs. M/S Best India Tobacco Circle-1(1) Suppliers Pvt. Ltd. Guntur D.No.9-11-1, Kothapet Guntur [Pan :Aaacb9184B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Co.No.59/Viz/2017 (Arising Out Of I.T.A.No.238/Viz/2017) (धििाारण िर्ा/Assessment Year:2011-12) M/S Best India Tobacco Acit Suppliers Pvt. Ltd. Circle-1(1) D.No.9-11-1, Kothapet Guntur Guntur [Pan :Aaacb9184B]

For Respondent: Shri V.Appala Raju, DR

Section 194Section 194C(6)Section 40

ACIT 23(3), Mumbai vs. S.R. Brothers, Mumbai

In the result, the appeal of the Revenue is dismissed and the cross objection of the assessee is partly allowed, as above

ITA 6318/MUM/2016[2006-07]Status: DisposedITAT Mumbai07 Aug 2018AY 2006-07

Bench: Shri G.S.Pannu & Shri Pawan Singh

For Respondent: Shri Himanshu Sharma

Section 143(3)Section 172Section 194Section 40

Taewoong Logistics Pvt Ltd., Chennai vs. ACIT (OSD) Corporate Circle 3, Chennai

In the result, the assessee’s appeal is treated as allowed for statistical

ITA 990/CHNY/2018[2012-13]Status: DisposedITAT Chennai06 Aug 2018AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकरअपीलसं/.I.T.A. No. 990/Chny/2018 "नधा"रणवष"/Assessment Year : 2012-13

For Appellant: Shri Raghunathan Sampath, AdvocateFor Respondent: Shri ARV Sreenivasan, JCIT

Section 172Section 194CSection 40

DCIT (It) 3(1)(2), Mumbai vs. Korean Marine Transport Co. Ltd, Mumbai

The appeal of the revenue is dismissed in terms of our aforesaid observations

ITA 409/MUM/2016[2012-13]Status: DisposedITAT Mumbai11 Jul 2018AY 2012-13

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm M/S Korea Marine Transport Co. Ltd. Deputy Commissioner Of Income C/O Sea Horse Ship Agencies P. Ltd , Tax (Int. Tax)- 3(1)(2), बिधम/ Mumbai Sea Horse House, 30/32, Vs. Marzben Street, Ballard Estate, Mumbai 400001 स्थामीरेखासं./ जीआइआयसं./ Pan No.Aacck1101F (अऩीराथी / Appellant) (प्रत्मथी / Respondent) : Deputy Commissioner Of M/S Korean Marine Transport Co. Ltd. Income Tax (Int. Tax)- 3(1)(2), Sea Horse House, 30/32, Adi Marzben बिधम/ Room No. 113, 1St Floor, Street, Ballard Eatate, Vs. Scindia House, Ballard Estate, Mumbai 400001 Mumbai-400038 स्थायीलेखासं./ जीआइआरसं./ Pan No.Aacck1101F (अऩीराथी / Appellant) (प्रत्मथी / Respondent) :

For Appellant: NoneFor Respondent: Shri Samuel Darse, D.R

Section 143(2)Section 143(3)Section 44BSection 44B(2)(i)

Korea Marine Transport Co.Ltd, Mumbai vs. DCIT (It) 3(1)(2), Mumbai

The appeal of the revenue is dismissed in terms of our aforesaid observations

ITA 1025/MUM/2015[2011-12]Status: DisposedITAT Mumbai11 Jul 2018AY 2011-12

For Appellant: NoneFor Respondent: Shri Samuel Darse, D.R

Section 143(2)Section 143(3)Section 44BSection 44B(2)(i)

ACIT, Cir-29, Kolkata vs. Ans Leather Company, Kolkata

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

ITA 1071/KOL/2015[2009-2010]Status: DisposedITAT Kolkata30 May 2018AY 2009-2010

Bench: Shri A. T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1071/Kol/2015 ("नधा"रणवष" / Assessment Year: 2009-10) Acit, Circle-29, Kolkata Vs. Ans Leather Company

For Appellant: Shri Soumyajit Dasgupta, Addl. CIT(Sr. DR)For Respondent: Shri Subash Agarwal, Advocate

Section 133(6)Section 143(2)Section 143(3)Section 172Section 40

M/S. Pms Diesels, Phagwara vs. Addl. Commissioner of Income Tax, Phagwara

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

ITA 64/ASR/2016[2005-06]Status: DisposedITAT Amritsar28 Mar 2018AY 2005-06

Bench: Sh. Sanjay Arora & Sh. N.K.Choudhryita No.64(Asr)/2016 Assessment Year:2005-06

For Appellant: Sh. Tarun Bansal (Ld. Adv.)For Respondent: Sh. Rajeev Gubgotra (Ld. DR)

Section 172Section 201(1)(A)Section 250(6)Section 40

Evergreen Marine Corpopration (Taiwan) Ltd, Mumbai vs. DDIT (It) 2(2)(1)

ITA 1228/MUM/2017[2012-13]Status: DisposedITAT Mumbai05 Jan 2018AY 2012-13

Bench: Sh. B. R. Baskaran, Am & Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 1228/Mum/2017 (निर्धारणवर्ा / Assessment Year: 2012-13)

For Appellant: Ms. AavatiSatheFor Respondent: Shri M. V. Rajguru

Section 143(1)Section 143(3)Section 44B

Kuloday Technopack P. Ltd, Mumbai vs. ITO 8(2)(2), Mumbai

In the result, appeal of the assessee in ITA No

ITA 3300/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Sept 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 3300/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No. 2423/Mum/2014 (नििाारण वर्ा / Assessment Year : 2010-11)

For Appellant: Shri. M. SubramanianFor Respondent: Shri Rajesh Kumar Yadav,DR

Section 143(3)Section 154Section 172Section 172(1)Section 194CSection 195Section 40

K.M Ganatra & Co., Mumbai vs. DCIT 22(2), Navi Mumbai

Appeal of the Revenue is allowed for statistical purposes

ITA 987/MUM/2013[2009-10]Status: DisposedITAT Mumbai22 Sept 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Years: 2009-10 M/S. K. M. Ganatra & Co. Dy. Cit, 702, Krushal Commercial Circle 22(2), बनाम/ Complex, M. G. Road, 4Th Floor, Tower No. 6, Vs. Above Shoppers Stop, Vashi Railway Station Chembur (W), Building, Vashi, Mumbai-400 089 Navi Mumbai-400 703 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaafk 0966 F Assessment Year: 2009-10 Dy. Cit, Circle-22(2) M/S. K. M. Ganatra & Co. Navi Mumbai-400 703 बनाम/ Mumbai-400 089 Vs. (राज"व /Revenue) ("नधा"रती /Assessee)

Section 142(1)Section 143(2)Section 172Section 194CSection 40