What is the leading case on Section 5(2)(b) of the Income Tax Act?

CIT v. Eon Technology P Ltd. (246 CTR 40) is the decision most relied on for Section 5(2)(b), cited in 15 judgments. Foreign commission paid to non-residents is not taxable in India, thus no TDS liability arises on such payments.

Which cases are most cited on Section 5(2)(b)?

CIT v. Eon Technology P Ltd. (246 CTR 40) — 15 citing judgments; DCIT v. Sudipta Maity (96 Taxmann.com 336) — 10 citing judgments; A B Hotel Ltd (Rad Hotel) v. DCIT (25 SOT 368) — 5 citing judgments.

How many judgments are there on Section 5(2)(b)?

BharatTax indexes 49 ITAT, High Court and Supreme Court judgments that turn on Section 5(2)(b) of the Income Tax Act, 1961.

Section 5(2)(b) of the Income Tax Act

Income-tax Act, 2025: s.5

Section 5(2)(b) falls under section 5 of the Income-tax Act, 1961, which corresponds to section 5 (Scope of total income) of the Income-tax Act, 2025.

Read section 5 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 5(2)(b) is CIT v. Eon Technology P Ltd. (246 CTR 40), cited in 15 of the 49 judgments on BharatTax that turn on this section.

Leading authorities on Section 5(2)(b)

CIT v. Eon Technology P Ltd.

246 CTR 40 · 2012 · High Court

citing judgments

Foreign commission paid to non-residents is not taxable in India, thus no TDS liability arises on such payments.

DCIT v. Sudipta Maity

96 Taxmann.com 336 · 2018 · Reported

citing judgments

Income derived by a non-resident for performing services in India is taxable in India, even if the payment is received outside India and the individual is not a resident of India, provided the services are rendered within the territorial limits of India.

A B Hotel Ltd (Rad Hotel) v. DCIT

25 SOT 368 · 2008 · ITAT

citing judgments

Judgments on Section 5(2)(b)

Pr. Commissioner of Income Tax-5 vs. M/S. Puma Sports India P., Ltd

The appeal stands dismissed

ITA/223/2018HC Karnataka12 Mar 2021

Bench: SATISH CHANDRA SHARMA,V SRISHANANDA

Section 143(3)Section 144Section 260Section 40Section 5(2)(b)Section 9(1)(i)Section 92C

Sh. Kamal Galani, Mumbai vs. ACIT 23 (3), Mumbai

In the result appeal filed by the assesee for Asst

ITA 138/MUM/2019[2003-04]Status: DisposedITAT Mumbai10 Sept 2020AY 2003-04

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 144Section 144oSection 147

Volkswagen Finance P.Ltd, Mumbai vs. ITO (It) 4(3)(2), Mumbai

In the result, the appeal is dismissed

ITA 2195/MUM/2017[2015-16]Status: DisposedITAT Mumbai19 Mar 2020AY 2015-16

Section 201

ACIT, New Delhi vs. M/S. D.R. Exports International, Delhi

In the result, appeal of the Revenue is allowed in part for statistical purpose

ITA 6505/DEL/2016[2012-13]Status: DisposedITAT Delhi20 Jan 2020AY 2012-13

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri Jagdish Singh, Sr. DRFor Respondent: Dr. Rakesh Gupta, Advocate &

Section 195Section 43(5)Section 9(1)(i)

Thy ACIT, Circle-2(1)(2), Ahmedabad vs. M & B Engineering Limited, Ahmedabad

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

ITA 370/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad22 Oct 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad

For Appellant: Shri Lalit P. Jain, Sr. D.R

Section 195Section 195(2)Section 40Section 5Section 5(2)(b)Section 9Section 9(1)(i)Section 9(1)(vii)

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)

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

In the result, appeal of the Revenue is dismissed

ITA 5028/MUM/2017[2013-14]Status: DisposedITAT Mumbai30 Jan 2019AY 2013-14

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Bleincome Tax Officer – 2(2)(1) V. M/S. Indo Industries Ltd. Room No. 549, 5Th Floor, A/1, Sameer Apartment, Aayakar Bhavan, M.K. Road, 169, S.V. Road, Mumbai-400 020 Andheri (W) Mumbai – 400 058 Pan: Aaaci 8197 D (Appellant) (Respondent) Assessee By : Shri Bhupendra Shah Department By : Shri Abi Rama Kartikeyan

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Abi Rama Kartikeyan

Section 195Section 40Section 5Section 5(2)(b)Section 9Section 9(1)(i)

The ACIT, Bharuch Circle, Bharuch vs. M/S. Ramdev Chemical Industries, Ankleshwar

In the result, the appeal of the Revenue is dismissed

ITA 2999/AHD/2014[2010-11]Status: DisposedITAT Surat15 Oct 2018AY 2010-11

Bench: Shri C.M.Garg & Shri O.P.Meenaआ.अ.सं./I.T.A No. 2999/Ahd/2014 िनधा"रण वष"/A.Y.:2010-11 Assistant Commissioner Vs. M/S. Ramdev Chemical Of Income Tax, Bharuch Industries, 3441-B, Gidc, Circle - Bharuch Industrial Estate Ankleshwar Pan: Aacfr3839A अपीलाथ" Appellant ""यथ"/Respondent

Section 143Section 195Section 40Section 5Section 9Section 9(1)(i)

ACIT 27(3), Navi Mumbai vs. Ramesh P. Singh, Mumbai

In the result, appeal filed by the revenue for assessment year 2012-2013

ITA 974/MUM/2017[2012-13]Status: DisposedITAT Mumbai28 Sept 2018AY 2012-13

Bench: Shri R.C. Sharma (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-13 The A.C.I.T. 27(3), Shri Ramesh P. Singh, 4Th Floor, Tower No. 6, Prop. Of M/S Aditya Investment Vashi Railway Station Complex & Exim Trade (Co.), Vashi, Vs. Plot No. 23, Pallvi Building, Navi Mumbai Maneklal Estate, Ghatkopar (E), Mumbai - 400086 Pan: Aagps2739C (Appellant) (Respondent) Revenue By : Shri Chaitanya Anjaria (Dr) Assessee By : None Date Of Hearing: 12/09/2018 Date Of Pronouncement: 28/09/2018

For Appellant: NoneFor Respondent: Shri Chaitanya Anjaria (DR)

Section 143Section 143(2)Section 195Section 40Section 5(2)(b)Section 7Section 9(1)(i)

The Dy. CIT, Circle-2(1)(1), Ahmedabad vs. M/S. Gujarat Microwax Ltd., Ahmedabad

In the result, Revenue’s appeal stands dismissed

ITA 2503/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad24 May 2018AY 2013-14

Bench: Shri Waseem Ahmed & Shri Mahavir Prasadआयकर अपील सं./I.T.A. No.2503/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2013-14) Dcit, M/S. Gujarat Microwax बनाम/ Cir – 2(1)(1), Pvt. Ltd., Vs. Ahmedabad. 401 & 02, Sarthik Square, Sarkhej Gandhinagar Highway, Bodakdev, Ahmedabad – 380 054 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacg 5593 P .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से / Appellant By : Dr. Jayant Jhveri, Sr.D.R. ""यथ" क" ओर से/Respondent By : Shri G.C. Pipara, C.A.

For Appellant: Dr. Jayant Jhveri, Sr.D.RFor Respondent: Shri G.C. Pipara, C.A

Section 195Section 40

JCIT, (OSD), Cir-2(2), Kolkata vs. M/S Onprocess Technology India Pvt. Ltd., Kolkata

In the result, the appeal of assessee is allowed and that of the revenue is dismissed

ITA 1241/KOL/2016[2012-2013]Status: DisposedITAT Kolkata24 May 2018AY 2012-2013

Bench: Shri P.M. Jagtap, Am & Shri A. T. Varkey, Jm]

Section 195Section 40Section 9(1)(i)Section 9(1)(vii)

On Process Technology India Pvt. Ltd., Kolkata vs. DCIT, Cir-2(2), Kolkata

In the result, the appeal of assessee is allowed and that of the revenue is dismissed

ITA 1047/KOL/2016[2012-2013]Status: DisposedITAT Kolkata24 May 2018AY 2012-2013

Bench: Shri P.M. Jagtap, Am & Shri A. T. Varkey, Jm]

Section 195Section 40Section 9(1)(i)Section 9(1)(vii)

M/S. Bengal Tea & Fabrics Ltd., Kolkata vs. DCIT, Circle-4, Kolkata

In the result, assessee’s appeal stands allowed

ITA 1667/KOL/2016[2012-13]Status: DisposedITAT Kolkata28 Feb 2018AY 2012-13

Bench: Shri Aby.T Varkey & Shri Waseem Ahmedassessment Year :2012-13

Section 143(3)Section 195Section 40Section 5(2)(b)

The DCIT, Circle-2(1)(2), Ahmedabad vs. Komal Amin Exports Pvt.Ltd., Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 3298/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad08 Feb 2018AY 2010-11

For Appellant: Shri S.N. Divetia, A.RFor Respondent: Shri Sumit Kr. Verma, Sr. D.R

Section 143(3)Section 195Section 195(2)Section 40Section 5Section 5(2)(b)Section 9

Mr. Sanjeev Gupta, New Delhi vs. Addl.CIT, New Delhi

In the result, ground No. 3 and 4 With respect to the disallowance of export commission of the appeal of the assessee are allowed

ITA 3366/DEL/2014[2010-11]Status: DisposedITAT Delhi02 Jan 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishisanjeev Gupta, Vs. Addl. Cit, E-31, Kamla Nagar, Range-20, New Delhi New Delhi Pan:Ahcpg7326A (Appellant) (Respondent)

For Appellant: Shri Satish Aggarwal, CAFor Respondent: Shri Kaushlendra Tiwari, Sr. DR

Section 143Section 195Section 40Section 5Section 5(2)(b)Section 9Section 9(1)(i)

ACIT, New Delhi vs. Sh. Rahul Juneja, Faridabad

In the result, appeal of the Revenue is dismissed

ITA 4568/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Dec 2017AY 2011-12

Bench: Sh. O.P. Kant & Sh. K.N. Charyassessment Year: 2011-12 Acit, Vs. Sh. Rahul Juneja, Circle 31(1), New Delhi Plot No. 29, Dlf Indl. Area, Phase-I, Faridabad Pan : Aafpj2485F (Appellant) (Respondent) Appellant By Sh. Ravi Kant Gupta, Sr.Dr Respondent By Sh. Rajesh Malhotra, Ca Date Of Hearing 21.12.2017 Date Of Pronouncement 29.12.2017 Order Per O.P. Kant, A.M.:

Section 139(5)Section 143(2)Section 143(3)Section 195Section 40Section 5(2)(b)Section 9(1)

ACIT, New Delhi vs. Sh. Dushyant Kumar Jain, Delhi

The appeal of the Department stands dismissed

ITA 1468/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Dec 2017AY 2011-12

Bench: Shri B.P.Jain & Shri Sudhanshu Srivastava

For Appellant: Shri S.K. Jain, Sr. DRFor Respondent: Shri Navin Kumar Jain, CA

Section 195Section 40Section 5(2)(b)Section 9

DCIT, Circle-1(1), Cuttack vs. Barbil Mining & Industries Pvt. Ltd., Keonjhar

In the result, appeal of the assessee is dismissed

ITA 185/CTK/2016[2009-10]Status: DisposedITAT Cuttack29 Aug 2017AY 2009-10

Bench: Shri N.S.Saini, Am & Shri Pavan Kumar Gadale, Jm आयकर अपील सं./Ita No.185/Ctk/2015 (धनधाारण वषा / Assessment Year :2012-2013) M/S Ocl India Limited, Vs. Ddit (International Administrative Building, Taxation), Bhubaneswar- At/Po: Rajganpur, 751007 Dist: Sundergarh, Odisha स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No. : Aaaco 1354 J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) धनधााररती की ओर से /Assessee By : Shri Soumen Adak/ Ashish Poddar, Ar राजस्व की ओर से /Revenue By : Shri N.B.Som, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 29/06/2017 घोषणा की तारीख/Date Of Pronouncement 07/07/2017 आदेश / O R D E R Per Shri Pavan Kumar Gadale, Jm: The Assessee Has Filed This Appeal Against The Order Of Cit(A)-1, Bhubaneswar, Passed In It.Appeal No.0262/2013-14, Dated 27.01.2015, Passed U/S.201(1)/201(1A) Of The Income Tax Act. 2. The Assessee Has Raised The Sole Substantive Ground That The Cit(A) Has Erred In Confirming The Action Of Ao For Treating The Assessee In Default U/S.201(1)/201(1A) Of The Act In Respect Of Payment Of Export Commission Of Rs.28,65,906/-. 3. Brief Facts Of The Case Are That The Assessee Is Engaged In Business Of Manufacturing Of Cement & Refractory Products & The Ao Found That The Assessee Paid An Amount Of Rs.28,65,906/- As Commission On 26.9.2011 To M/S International Link Corporation, Iran, A Company Registered In Tehran Without Deducting The Tax At Source As Per Section 195 Of The Act, 1961. Subsequently Notice U/S.201(1)/201(1A) Of The Act

For Appellant: Shri Soumen Adak/For Respondent: Shri N.B.Som, Sr. DR

Section 195Section 195(1)Section 201Section 201(1)Section 5(2)(b)Section 9(1)Section 9(1)(vii)

M/S. Ocl India Limited, Sundergarh vs. DDIT(International Taxation), Bhubaneswar

In the result, appeal of the assessee is dismissed

ITA 185/CTK/2015[2012-13]Status: DisposedITAT Cuttack07 Jul 2017AY 2012-13

For Appellant: Shri Soumen Adak/For Respondent: Shri N.B.Som, Sr. DR

Section 195Section 195(1)Section 201Section 201(1)Section 5(2)(b)Section 9(1)Section 9(1)(vii)

Mewa Singh Bola, Jhunjhunu vs. ADIT, Jaipur

In the result, ITA Nos. 527/JP/2013 and 541/JP/2013 are allowed

ITA 527/JPR/2013[2006-07]Status: DisposedITAT Jaipur31 Jan 2017AY 2006-07

For Appellant: Shri Manish Agarwal &For Respondent: Shri R.A. Verma (Addl.CIT)

Section 148Section 149(3)