TaxTMI 
TaxTMI 
2025 (8) TMI 455
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....24 [impugned order] passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No. 1550/Bang/2024 in respect of Assessment Year [AY] 2017-18. 2. The Revenue had preferred the aforementioned appeal [ITA No.1550/Bang/2024] impugning the order dated 12.06.2024 passed by the learned Commissioner of Income Tax (Appeals), Bengaluru [CIT(A)], whereby the Assessee's appeal against the Assessment Order dated 19.05.2021 for AY 2017-18 was partly allowed. 3. The controversy in the present case relates to (i) addition of Rs. 1,44,73,422/- made by the National E-Assessment Centre, Delhi [AO] under Section 28(iv) of the Act in respect of assets received by the respondent [Assessee] from its Associated Enterprise [AE] located overseas; an....
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....50/- under the head profits and gains from business and income from other sources. The Assessee's return was picked up for scrutiny and the proceedings culminated in the AO passing an Assessment Order dated 19.05.2021 under Section 143(3) of the Act. The AO determined the Assessee's income at Rs. 44,81,52,116/- by making the following additions: (a) Addition of Rs. 1,44,73,422/- on account of certain assets that were provided free of cost by AEs located overseas; and (b) Addition of Rs. 9,59,334/- made on account of disallowance under Section 40(a)(i) of the Act, in respect of training charges paid to a Non-Resident without deduction of TDS. 6. The Assessee's AE's had provided certain equipment - largely computer and data process....
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.... of the India Singapore DTAA, payments for Independent Personal Services are not chargeable to tax in India. The service provider did not have any fixed place of business in India and his stay, during the previous year relevant to AY 2017-18, did not exceed the period of ninety days. 9. However, the AO held that the payment of Rs. 9,59,334/- made to the foreign resident was chargeable to tax under the Act as "fees for technical services" [FTS]. 10. The Assessee appealed the Assessment Order before the learned CIT (A). 11. The learned CIT(A) following the decision of the learned ITAT in the case of Tesco Bengaluru Pvt. Ltd., ITA No.2387/Bang/20I9, deleted the addition made on account of fixed assets provided free of cost by AEs loca....
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....the payments made to M/s. J L Services & Consultancy (Proprietor Mr. Toh Tiong Yau) were in the nature of payments for independent personal services. Thus, the same were not be chargable to tax in India in terms of Article 14 of the India - Singapore DTAA. 15. The learned ITAT concurred with the decision of the learned CIT(A) in respect to deletion of Rs. 1,44,73,422/- on account of value of assets received free of cost. Insofar as the disallowance of workshop expenses amount to Rs. 9,59,334/- is concerned, the learned ITAT held that grounds as raised by the revenue did not arise in the assessment order. Reasons and Conclusion 16. We find no infirmity with the decision of the CIT(A) and the learned ITAT in deleting the addition of ....
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....bursement payment made by the assessee to seconded employees? 4) Whether in the facts and circumstances of the case, the ld. CIT(A) failed to appreciate that amounts reimbursed by assessee to overseas companies and employees in terms of secondment agreement amounted to fee for technical services liable to tax in India and, thus, assessee was required to deduct tax at source under section 195 of Income Tax Act?" 18. The addition was not made on account of payments made to seconded employees under secondment agreement. The AO had held that the payment made for professional services by M/s. J L Services & Consultancy was in the nature of fees for technical services, which was covered under Article 12 of India Singapore - DTAA. 1....
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....pply the technology contained therein. For the purposes of (b) and (c) above, the person acquiring the service shall be deemed to include an agent, nominee, or transferee of such person. 5. Notwithstanding paragraph 4, "fees for technical services" does not include payments : (a) for services that are ancillary and subsidiary, as well as inextricably and essentially linked, to the sale of property other than a sale described in paragraph 3(a) ; (b) for services that are ancillary and subsidiary to the rental of ships, aircraft, containers or other equipment used in connection with the operation of ships or aircraft in international traffic ; (c) for teaching in or by educational institutions; (d)....