2023 (6) TMI 773

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.... of the Act [Income Tax Act, 1961], challenging the common order dated 25.05.2016 in ITAs No.2 & 3/Bang/2014 respectively, passed by the ITAT [Income Tax Appellate Tribunal], 'B' Bench, Bangalore, have been admitted to consider the following common question of law: Whether in the facts and circumstances of the case, the Tribunal is right in law in Tribunal in holding that assessee is not liable to deduct tax on payments made to Infosys Technology Chine Co. Ltd (for short ITCL) on sub-contract work done by them by holding that the services are not rendered in India ignoring amendment of Finance Act, 2010 in section 9 whereby Explanation below section 9(2) has been substituted with retrospective effect from 01/06/1976 whereby pre-req....

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....smissed. The ITAT, by the impugned order, has allowed assessee's appeal. Feeling aggrieved, the Revenue is before this Court. 5. Shri Aravind submitted that explanation to Section 9 of the Act is made effective from 01.06.1976. Therefore, the assessee was liable to deduct tax at source under Section 9(1)(vii) of the Act. 6. Shri Suryanarayana, placing reliance on Ishikawajma-Harima Heavy Industries ltd. Vs. Director of Income Tax [2007] 158 Taxman 259 (SC) para 79, submitted that the amendment has been made effective from the A.Y.2011-12. So far as the transactions in the assessment years 2009-10 and 2010- 11 are concerned, there was no amendment. Hence, assessee could not have been called upon to do an act which is not prescribed in ....