2019 (4) TMI 1042

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....alary instead of income from contract of services as held in the assessment order? ii. Without prejudice to the Ground No.i, whether the services rendered after the execution of contract for services would be covered and taxable as Fees for Technical Services u/s 9(1)(vii) read with explanation below sub­section (2) of section 9 of the I.T. Act, 1961? iii. Whether on the facts and in the circumstances of the case and in Law, the ITAT was justified in deleting the disallowance u/s 40(a)(ia) of the I T Act, 1961?" 2. These issues arise in the following background. Respondent is sole proprietor of one M/s Radiant Services. Said Radiant Services had entered into an agreement with one M/s Arabi Enertech of Kuwait based c....

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.... source under Section 195 of the Act. 4. The revenue carried the matter in appeal before the Tribunal. Tribunal confirmed the view of the CIT (Appeals) upon which the present appeal has been filed. 5. Having heard learned counsel for the parties and having perused documents on record, we do not find any error in the view of the CIT (Appeals) and the Tribunal. The contract between the assessee and the Kuwait based company was sufficiently clear giving all indications that the concerned person was the employee of the assessee. The preamble to this contract itself provided that as per the contract the assessee would supply Commissioning Engineer to the said company on deputation basis for its on going project. Such deputation would be on....