2018 (3) TMI 1709

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....on of law urged by the Revenue in its appeal under Section 260A of the Income Tax Act, 1961 ('the Act') was whether the ITAT (Tribunal) fell into error in holding that the sum of Rs. 94,91,410/- could not be disallowed under Section 40(a) of the Act. The Assessee-a public sector company is engaged in engineering consultancy and contract work. It provides engineering and technical consultancy serv....

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....ioned by me is whether the payment made by the assessee company to the agent outside India in the nature of their business income or fees for technical services. The Assessing officer has held the service to be technical services as per provision of 9 (l)(vii)(b) of the Income Tax Act. For application of the said provision the nature of the services rendered by the non-resident in USE are to be ex....

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.... taken with regard to the gods to be delivered. In such circumstances, it cannot be said that technical services have been rendered by the agent at UAE. Therefore, the income earned by the said agent outside India is to be considered as his business income and as held by the Hon'ble Delhi High Court in the case of EON Technology P. Ltd. (Cited Supra) the business profits of a non-residents cannot ....